VR System is a simple trading strategy developed by the administrator of the Trading-Go resource. The effectiveness of a trading strategy is tested by time. The first version was released in 2013 and to this day it works effectively in all financial markets.
The strategy has been developed on practical trading for several years, the indicators included in the main indicator of the VR System are not the basis, but merely serve as filters for determining trends. At the core of the trading system are several basic rules, following which you can fully understand the essence of the VR System.
The trading strategy is based on two classic indicators Donchian and Moving Avarage. The author of the strategy reworked the Donchian and Moving Avarage indicators and merged them into one powerful tool. Due to this, there is no unnecessary information on the chart. All ingenious is simple, the author was guided by this principle. Donchian Channel (Donchian) allows you to determine the levels of local maxima and minima, and the moving average shows the direction of the current trend.
The strategy has clear rules for setting Take Profit (Take Profit), Stop Loss (Stop Loss), no loss (Breakeven), Trailing Stop (Trailing Stop). There are strict rules for entering the market, holding a position, increasing and accumulating volume in a trend, as well as not less strict rules for exiting the market. Strict cash management (Money Management) allows you to effectively manage your account balance and avoid unnecessary deposit load and psychological stress.
The Donchian Channel indicator is built from two lines, the upper line (Upper Line) denotes local maxima and the lower line (Lower Line) denotes local minima. Highs and lows are based on the indicator settings (Period Donchian).
Period Donchian - setting in which sets the number of periods for the calculation and search for local maxima and minima. The longer the period, the wider the channel will be and the stronger Upper Line and Lower Line levels will be calculated.
The growth of the Upper Line and the growth of the Lower Line indicate an upward trend.
The classic rule for determining an uptrend is if a new local maximum is higher than the previous one and a new local minimum is higher than the previous one, then there is an uptrend on the trading instrument.
The decline in the Upper Line and the decline in the Lower Line indicate a downward trend.
The classic rule for determining a downtrend is if a new local maximum is lower than the previous one and a new local minimum is lower than the previous one, then a downtrend on the trading instrument.
If during several trading periods the Upper Line does not change direction, stretching into a flat horizontal line, and the Lower Line does not change its direction stretching into a flat horizontal line, then it is considered that there is uncertainty (Flat) on the trading instrument.
If it is not possible to apply the trend rules described above to the trading instrument, then it is considered that there is uncertainty (Flat) on the trading instrument.
The figure clearly shows the trend and uncertainty patterns of the first signal:
The indicator Moving Average is used to determine the current fair price, as well as the current price direction. The trading strategy uses three copies of the Moving Average indicator with different settings. This allows you to accurately determine the direction of the current trend.
An example of a description of a signal to buy is the Upper Line and Lower Line lines pointing up or one of the lines in the flat state and the second one pointing to the top. The lines of the three Moving Average indicators are directed to the top. The last candle closed growth and has its own low (Low) below the Moving Average.
We make a double entry on one signal, that is, we enter the market with two orders. We place stop orders for both orders outside the Donchian channel. Stop loss should be 20-30pips further from the extreme line of the channel. Take Profit set only the first order and put it inside the channel. Take Profit should be inside the channel and be at a distance of 20-30 pips from the opposite line.
The price went against us - Two orders are closed at the stop loss.
The price went to the profit side - the First order is closed with a profit, thereby fixing the profit and relieving the psychological burden. We move the second order to breakeven by setting Stop Loss to the level of the order opening price. The second order remains for a long time. Management options and the closure of the second order may be different, its main goal is to accumulate profits.
By trend of such second orders can accumulate 3-10 pieces, each giving a profit. It turns out the trader trades and always has a positive profit, which removes the psychological burden. With long-term trading, second orders can bring very large profits.
Newbies (up to 1 year of experience) in the financial markets using this strategy can earn from 0 to 5 percent per month, and can also lose their entire deposit. This income is due to lack of experience, non-compliance with the main rules and regular experiments using third-party indicators and trading rules, as well as the desire to get rich in two hours. Unfortunately, lack of experience and greed do not give beginners to succeed in trading immediately.
Experienced traders (from 1 to 3 years old) can take profits of 10-15 percent per month. Such profitability is due to the presence of experience and fundamental knowledge of trending. The presence of small deposits, the search for graded trading systems often lead experienced traders in the wrong direction. Obtaining a small stable profit, experienced traders often try to riskyly increase the volume of transactions, which periodically leads to plums.
Professional traders (more than 5 years of trading) can fixed income from 15 to 50 percent per month. Having your own trading strategy in conjunction with the VR System trading strategy allows you to competently and without risk to trade in financial markets. Strict adherence to the basic rules of trading, the presence of discipline, developed over the years, allow you to receive a return of 15 percent per month. Important factors remain the desire to earn and the lack of desire to indulge in and play in the market.
From the 100 orders about 65-70 closes at the profit, about 10-15 by stop loss, and in breakeven of 20-25. On average, 10 to 20 trades are made per week on major currency pairs. The selection of pairs for trading is done by the VR Watch list and linker program. Time to hold a transaction in the market can be from 1-2 hours to 4-6 weeks. When trend trading by a trend, up to 10 orders can be opened simultaneously according to strategy signals.
Start analyzing a currency pair from higher timeframes, I analyze the daily chart for trend or breakdown of Donchiana lines. If there is no trend on the daily chart and there is a situation of uncertainty, then I postpone such a currency pair until better times. If not today, then tomorrow it will be what I need and I will trade on it, but not yet. If there is a trend on the pair, I switch to the 4-hour timeframe, if the trend at 4-hour goes in the direction of the daily trend, then the next step is to switch to the hourly chart and search for entry points as shown in the pictures above. The purpose of this analysis is to find the big long trends and initially enter at the beginning and exit at the end. Double entry into the market greatly unloads psychologically.
I bring one pair to such a state of the code on the account there is a large positive equity. The absence of stress and psychological stress helps to avoid mistakes with new deals. According to the classics, in strategies are placed the stop losses, I use negative locking, and with new signals I open locks, which allows closing potentially unprofitable orders with minimal loss or with minimal profit.
Depending on the situation, I can use trailing stop, trailing stop along the channel line or simply manually moving the stop loss to safe levels.
1 - You open a demo account, the deposit amount of a demo account should be the same as you plan to open a real account.
2 - You are trading in the system, after 100 orders for the classic trading in the system, you make an analysis of your trade. Orders should be opened strictly on the system. if there is any doubt, or you are not sure, it is better not to open the deal. Trading should be on the timeframe of 1 hour or more.
If at the end of trading your profit is near zero, then it makes sense to trade and work, as well as to understand why it turns out to be zero.
If your profit indicator is more than zero, then you can safely switch to a real account.
If your indicator is less than zero, that is, you have traded at a loss, then this strategy does not suit you.
Posted October 31 2018г.
Published: 10 Feb. 2016
Published: 12 Jul. 2015
Published: Apr 1 2014
Period Donchian Settings
Upper Line Settings
Lower Line Settings
Big Upper Line Settings
Big Lower Line Settings
Moving Average 1 Settings
Moving Average 2 Settings
Moving Average 3 Settings
Average Line Settings
18.110 от 01.11.2018 Third VR System Update
17.100 от 16.10.2017 Second update
VR-System-RU.ex4 Version for MetaTrade 4 in Russian
VR-System-EN.ex4 Version for MetaTrade 4 in English
VR-System-RU.ex5 Version for MetaTrade 5 in Russian
VR-System-EN.ex5 Version for MetaTrade 5 in English
VR-System-RU.pdf - Description and instruction in Russian
VR-System-EN.pdf -Description and instruction in English
Main versions of the program:
The versions for the MetaTrader 4 and MetaTrader 5 terminals are exactly the same and have the same name.
VR-System-RU - Russian version of the program is available for free activation..
VR-System-EN - The English version of the program is available for free activation..
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