Hello, friends Forex traders!

Market it like a woman, sometimes requires persistence, tough approach, simple and tough decisions. After all, our main goal is to make a profit, although not in quite graceful ways.

Today we will discuss a very simple and efficient strategy Forex Ultra Filter, that was created specifically for AUDUSD pair. Even a novice can follow it. Author of  this TS increased his deposit 6 times for a year on this Forex system.

Characteristics of Forex Ultra Filter strategy

Platform: MetaTrader 4
Currency Pairs: AUDUSD
Timeframe: H1 + H4
Trading Time: All trading sesions
Recommended Broker: Roboforex, Instaforex, Hotforex

Basis of the strategy

If we look at the daily chart of  AUDUSD pair (see above), we will understand  that clear trend swings asking to get a  profit are visible to the naked eye. That allows you to hold position for a long time.

The obvious conclusion is that we need a good trigger on entry/exit and optimal levels of take-profits/risks. And, of course, we should not forget about money management.

 

Entries and exits

We enter using Ultra Filter indicator. Everything is very simple: we enter when the indicator changes color. Red — we sell, blue — we buy.

And that is very important — we ENTER AT THE OPENING OF THE SIGNAL CANDLE, unlike many other Forex strategies where we enter after closing of the signal bar. I.e. as soon as the signal at the candle opening appears, we open order immediately.

We exit when we get opposite signal of the indicator (flip of trade), or by Stop loss/Take-profit.

Stop-Loss and Take-Profit

Stop Loss for this strategy is equal to 70 pips, that approximately corresponds to an average daily volatility of Australian dollar.

TP is 210 pips. i.e. 3 times more than SL.

Money Management

Recommended risk level is lot 0.01 for every 100$ of deposit.

In addition

According the system we enter around the clock, regardless of the current trading session. We don’t pay attention to the releases of economic news.

Option № 2 of the system

There is also the longer version of this forex system for those who have no time to follow H1.

We trade on four-hour chart (H4), enter/exit on the signals of the indicator also. Stop-loss is  150 pips, TP is 450 pips.

Summary

Forex Ultra Filter strategy shows that even a rough approach to the analysis of the market in compliance with the rules makes a profit. This forex system is suitable for those traders who are attracted to the simplicity and absence of need to give a lot of mental energy for daily market analysis.

Among the shortcomings can be noted drawdowns, often prolonged, because we are trying to capture the major trends. This system is similar to the famous strategy of Turtles.

 

Download files of the strategy