Trading indicators and strategies, two parts of trading that often mean the difference between becoming profitable and successful or vice versa.
Often this may seem like utopia, but with the MASAR strategy it is possible to actually become not only a successful trader, but also consistently profitable, and all that is needed is to understand the strategy correctly and then gain the equally important practice.
Strategy entry rules (example)
Entering long positions
- Price goes up from below through the moving average and closes above it
- at the same time the price climbs above the Parabolic indicator
Entry into short positions
- price goes down from above through the moving average and closes below it
- at the same time the price drops below the Parabolic indicator
How to trade with the strategy
Today we have one of the simpler trading strategies, where you only need to wait for the price to go below or above both indicators and then you can start entering trading positions.
In the chart below, we can see 3 situations (1 purple, 2 green) where the price passed through the moving average and at the same time moved below the parabolic indicator, but in the first case (purple ellipse) the entry conditions were not fulfilled because the price did not close below the moving average in the end and it was, unlike the following passes, a false signal
Given today's combination of two relatively strong indicators, it is possible to achieve a long-term success rate in the range of 50-70% with this strategy, and the fact that the setup of both indicators tends to focus on longer-term movements greatly reduces the risk of cumulative short-term losses.