The setup overview for EMA Rainbow Strategy is a daily collection of analyzes of potential trades based on this strategy. Detailed description of the strategy can be found in this link. The cycle will last exactly two weeks. After this period, on Saturday, October 7, I will publish a summary of the statistics of this strategy and will report whether or not during these two weeks tested strategy was profitable.
As announced earlier, on the same day, I will also present another strategy that I will test for another two weeks. In this way I will try to test as many investment strategies as possible to find the best and most effective.
On CADJPY we had today already 4 signals to open CALL option. The first three could end up profitable, the last one – a loss. At the moment the pair is moving in a narrow consolidation, so that the EMA’s move flat, close together. As long as the market does not determine a particular direction and the average does not indicate an upward or downward trend, we have nothing to do else than wait for another signal on that pair.
On EURAUD there were as many as 6 signals to open the CALL option. Unfortunately, two of them proved to be lossy. The red arrows on the graph mark signal candle, while the colored rectangles are including 3 candles from opening until the option expires. According to the assumptions of the EMA Rainbow strategy this period is three times longer than observed interval. Another opportunity to open options on this instrument can occur after a slight correction and re-testing of the moving average (EMA14).
EURCHF also gave us 6 signals and also two of them were loss. We are currently experiencing dynamic declines, and as soon as the EMA’s will cross each other, we might have the opportunity to open PUT option on this instrument.
100% efficiency can be seen on the EURGBP pair, where the EMA Rainbow strategy generated 4 signals today for CALL option. The next opportunity to look for could be after the re-test of the violet moving average (EMA14).
Also 4 signals have appeared so far on the EURJPY. In this case the first one turned out to be a loss. However, with 75% performance is enough to be profitable playing binary options with uTrader conditions.
On the USDPLN, the EMA Rainbow strategy today generated 3 signals and like the EURGBP, all proved to be profitable.
I am aware that the above analyses depict historical set ups, but the whole cycle is supposed to:
- show how and what signals on the chart you need to look for,
- check if the EMA Rainbow strategy is profitable
- make us familiar with the strategy assumptions
As I mentioned in the introduction, on Saturday, October 7, I will publish a report summarizing the statistics of this strategy and will show whether or not these two weeks where profitable. So far, the results seem to be very optimistic, much better than the first strategy ( End of the Day) we tested in first two weeks of our project.
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