A look at Urban Towers
In this article, traders are presented with yet another trading strategy. For those reading this post it will be free of charge, while the author asks $500 for individual lessons on this strategy no matter how simple it might seem. The strategy is meant for M15 charts, and the author calls it scalping. Suitable markets are Forex, stock, and futures - the main criterion is their presence in the MetaTrader 4 terminal as long as the indicator is meant for this one only.
Urban Towers desktop
As you can see in the picture, the strategy only includes one trend indicator - RainbowMMA_07. It helps see the trend direction and gives signals for short/long market entries.
A signal to buy by Urban Towers
A signal to buy requires the following conditions:
- blue lines of the indicator must be above green ones.
- the price must bounce off RainbowMMA_07.
- the candlestick before the one at which the bounce happens must have lower High and Low; it must also go in pair with yet another candlestick with lower High and Low.
As soon as the signal appears, place a pending Buy Stop order 2 points (20 pips in 5-digit trade or 3 points for USD/JPY) plus spread above the high of the candlestick that is bouncing off the indicator. If the next candlestick does not trigger the order, having even lower High and Low, relocate the buying order above this candlestick. If the candlestick does not have at least a High or Low below the extremes of the previous one, do not relocate the order.
An example of a signal to buy by Urban Towers for Forex, futures, or stock markets:
In this case, a signal to buy appeared even before the pending order was triggered.
A signal to sell by Urban Towers
A signal to sell requires the following conditions:
- blue lines of the RainbowMMA_07 indicator must be under green ones, which indicates a downtrend.
- the price must bounce off the indicator.
- he candlestick before the one at which the bounce happens must have higher High and Low; it must also go in pair with yet another candlestick with higher High and Low.
As soon as a signal appears, place a Sell Stop pending order 2 points (20 pips in 5-digit trade or 3 points for USD/JPY) below the low of the bouncing candlestick. If the next candlestick does not trigger the order, having even higher High and Low, relocate the buying order below this candlestick. If the candlestick does not have at least a High or Low above the extremes of the previous one, do not relocate the order.
An example of a signal to sell by the strategy in Forex, futures, or stock markets:
Stop Loss and Take Profit in Urban Towers
When buying, place a Stop Loss 2 points (20 pips in 5-digit trading or 3-digit for USD/JPY) below the low of the signal candlestick, bouncing off the indicator. Alternatively, place it below the lows of next candlesticks with lower extremes.
When selling, place an SL 2 points (20 pips in 5-digit trading or 3-digit for USD/JPY) plus spread above the high of the signal candlestick bouncing off Urban Towers. Alternatively, place it after the candlestick if other candlesticks have higher extremes.
The author gives no recommendations on placing the Take Profit. However, as long as initially it was a scalping strategy, each trader needs to figure out the number of points/pips that is enough for them at every market entry.
Money management in Urban Towers
As long as the strategy presumes using pending orders, the most reasonable risk will be compromising set percentage of the last fixed deposit in each position. I recommend no more than 1-2% per trade. I highly recommend against entering more than 1 position at a time. If you feel uncomfortable, ignore the information from the beginning of the article and keep increasing the timeframe until you feel comfortable.
In essence, this strategy is a good start for a whole range of different trading systems. On larger timeframes, it might even suit busy people.
By Dmitriy Gurkovskiy,
Chief Analyst at RoboForex
