I-regression Trading System
This technique works on 5 minute timeframe or higher. It also works in all major pairs.
Indicators are listed below:
- Linear Regression Channel (i-Regr): degree=3, kstd=1.5, bars=240, shift=0
- Entry Trigger indicator: g_period_76=2, gi_80=1, Nbars=1000
- Colored MACD: Fast EMA=5, Slow EMA=15, Signal SMA=1
For LONG entry:
- Look for price to be near the Lower i-Regression band.
- It would be ideal if it is below or over the band. Sometimes we can open a position without this rule however the system is stronger when it is applied.
- As the lower i-Regression band represents a momentum support level, there is big chance that the price will retrace and if our other rules are also met, the chance for our trade to be profitable is greater.
- Look for the MACD indicator to increase its value, in other words to be colored Green. If it occurs above the Zero line this is an even stronger signal but not an absolute requirements though.
- Look for the Blue Arrow of the Entry Trigger to appear and then open a Long Position immediately.
- Set your Stop Loss below the previous low.
- Set your Profit Target at 15-30 pips from entry depending on the volatility of the pair you trade and the timeframe used. Set a larger target profit if the market is more volatile.
Close position manually as soon as you get 5-10 pips of profit if you feel that the price will reverse. It is better to close a trade in some profit rather than losing.
For SHORT entry:
- Look for price to be near Upper i-Regr band. If it is above or over the band that would be ideal .Sometimes we can open position without this rule however the system is stronger when it is applied.
- As the upper i-Regression band represents a momentum resistance level, there is big chance that the price will retrace and if our other rules are also met, the chance for our trade to be profitable is greater.
- Look for the MACD indicator to decrease its value, in other words to be colored Red. If it occurs below the Zero line this is an even stronger signal but it’s not an absolute requirement.
- Look for the Yellow Arrow of the Entry Trigger to appear and then open a Short Position immediately.
- Set your Stop Loss above previous high.
- Set your Profit Target at 15-30 pips from entry depending on the volatility of the pair you trade and the timeframe used. Set a larger Target profit if there is high volatility in the market.
Close position manually as soon as you get 5-10 pips of profit if you feel that the price will reverse. It is better to close a trade in some profit rather than losing.
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