$4442 Profit (4.4%) - Every ADR Reversal Forex Trade This Week - 20th-24th Feb 2023
This is a breakdown of every ADR reversal strategy trade closed this week by the market reversal alerts EA. You can download the set file used from the blog post on MQL5. This is an exhaustion strategy that trades only when price has moved beyond its normal daily range and the EA detects a move starting in the opposite direction, which may be a profit take move started by the banks. The target for each position taken is just 1/3 of an ADR (average daily range) or 1/4 percent account gain, whichever comes first. The strategy is looking to grab a small move not a large reversal as often ADR pushes can be the start of a new short term trend. If the move does not happen straight away, the strategy scales into trades at set distances from the initial trade when a reversal in structure is detected on the M5 timeframe. The full strategy is explained in the blog post here and is traded daily in the live rooms.
You will notice some trades are single entries which work either same day or the next trading day, these are the perfect setup and outcome for an ADR reversal, but as we know the markets don't give us the perfect trade very often. This is why position trading strategies are so effective, timing entries is the hardest part of trading and position trading eliminates the need to find a perfect entry. Other trades will be 2–3 trades per position, which is typical of the strategy. On some occasions a strong push will mean the strategy needs to scale into multiple positions and hold for up to a week or so occasionally, these will get a pullback and profit take on the move at some point, and we simply wait for the market structure to allow an exit, scaling out of the position is occasionally necessary, but the EA can also handle that automatically if and when required.
Full strategy: ADR Reversal Strategy
Indicators used to trade this strategy: Market Reversal Alerts | ADR Reversal Indicator | ADR Alert Dashboard
Automate the strategy: Market Reversal Alerts EA
