Today we will talk about the Simplest Strategy of the Levels (SSL) for the All-in-One Trade (AOTI) indicator. I’ve considered this before, for example here. But as the questions about the strategy continue, I decided to review this simple strategy in a separate article. We will look at the main pros and cons of the strategy, and why this strategy is needed.
About Simplest Strategy of the Levels
The simplest strategy of the levels was proposed by me at the numerous requests of my friends, clients, and students. Its main task is simplicity. If you are really busy and you can’t trade during the business day, you can use the simple strategy of the levels. This strategy is not a Grail, unfortunately. However, like all other strategies. I’m just trying to make it as profitable as possible and will continue to improve the strategy for myself and for all of you. The main advantage is the use of all additional indicator features, but I will talk about it a little later.
So, now about the strategy.
The strategy is based on opening positions on the daily levels of the indicator. The indicator calculates daily levels for certain currency pairs. There are currently 5 currency pairs and I plan to add new currency pairs in the future. I would like to remind you that all other indicator features (like reversal arrows, micro-levels of the support/resistance, dual-channel trend direction, price channel, MA bands, Fibo calculation, etc) working for any instruments.
The basic rules of the Simplest Strategy of the Levels
1). The indicator determines the daily levels 1 time per day. The indicator determines the daily levels for the whole day. New daily levels are available after 00:00 GMT, depending on your GMT Offset settings. How to determine the correct GMT Offset, I wrote here earlier.
2). We open a position at the moment of the appearing a new day levels.
The Opening Price – the opening price of the position.
TP Level – the expected level of profit.
SL Level – possible level of loss.
3). Next, we wait when the price will reach the profit or loss levels. To simplify the process of trading, we don’t use the other features of the indicator.
4). If the price has not reached the profit or loss level by the end of the day, we close the position with any profit at the end of the day.
Pros and cons of the strategy
The main advantage of the strategy is that we do not need to sit in front of the monitor all day. Also, we do not need to do additional analysis and study the market for trading.
But this is also the negative side of the strategy. We do not use additional market analysis – we do not filter important news, we do not use many additional features offered by the indicator. If we use all the features of the indicator and its additional signals, we can get profit even within a day, even regardless of the levels. All this gives us a lot more opportunities.
Of course, you can use this simple strategy, but I recommend a better understanding of the indicator and its functionality to increase your potential profit. Use all the features of the indicator. It takes time to learn, but you will be rewarded as a result. You can also try to combine it with your trading style and create your own strategy in which you will have confidence in the performance. The simplest trading strategy of the levels is just an example of how we can trade without studying the market. But this is not so right way. You can get much more profit if you use all the possibilities of the indicator.
Currently, due to the low volatility in the markets, I recommend using the advanced features of the indicator. The new version of the indicator will make important changes and improvements: new pairs will be added, and the volatility filter for the current market situation will be corrected. It will also be possible to load reference levels from the server, which will allow you to see my corrected levels in the future, without waiting for the release of the new version of the indicator and its moderation. The development is almost finished and a new version of the indicator will be available for download soon.
Additional features (recommended for using)
The Simplest Strategy of the Levels is a very simplified strategy and I have already written many times that I recommend using all indicator signals, not just the simplest levels strategy. This requires practice, but your efforts will be rewarded as a result…
This method is the simplest, but it has its own negative sides. We do not use additional analysis, we do not use additional indicator signals, we do not use all the features of the indicator. Although even with such a simple approach, the indicator shows a profit for several months. Only March was unprofitable for the indicator v4.0. And version 4.1 has got a small profit for March.
Not everything can be perfectly programmed, especially graphic constructions. In the movement of prices already have all the signals. The AOTI indicator is an auxiliary tool that helps us to see them better. This can be compared to glasses that show us the right picture when our vision fails us.
For an example. This example is not based on the Simplest Strategy of the Levels. In the picture below a signal to buy. Look the previous day. You can do this even in the current (M5) timeframe, although it is better to look at and evaluate the levels of H1 timeframes and higher.
Red horizontal levels are important levels at the end of the previous day. Yellow rectangles mark multiple touches of a price at these levels. Note that the indicator often builds micro-levels and reversal arrows at these points, which can confirm the correctness of the levels.
Point 1 – Theoretically, we can open a position here, as the price is at a strong enough support and we can buy. But at this point, it is early. It’s Pacific session and opens a position in such a quiet market is quite risky. It is better to wait for the opening of the European session so that the market is more volatile due to a large number of market players.
Point 2 – The price tries to rise but rests on the Resistance Micro-level. The unclear situation for opening a position. And the timing is still not so right.
Point 3 – Time is not optimal, but a good and strong support level confirmed by micro-levels. If I were before the terminal at this time, I would open the first position at this point.
Point 4 – The perfect level. Support for the previous day confirms the micro-level. Here I would open an additional position if I opened initially at Point 3. If I missed Point 3, the first position would open here. Further, we see that the price continues to “see” the levels of the previous day, bounces off them, but the daily level pulls it higher and higher.
This is an example of the analysis I’m using. Yes, it takes practice, just like any other case. After some time, our eyes begin to see a lot and does not need detailed graphical constructions.
Here are just a few examples of additional indicator signals that help me in trading:
Well, thank you for your attention. That’s it for today.
Good Luck & Big Profits!
