Now that you have learned each part of the trading plan, this lesson will review the whole strategy and how to set up your charts to begin your training.
1550 Trading Plan
The Set up: Identify the true value zone as defined by the 15, 50 & 200 EMA. Establish what the market environment is, choppy, trending, a newly established trend or just starting one. Remember, only buy above the 50 EMA and sell below it. Is the true value zone expanding or contracting.
Entry: Enter the trade with 2 positions equal to your total position size based on one of our entry setups. Write down all the rules for the entry reasons until you remember them! Be sure to wait for the candle to close, and if you are waiting for too large of a pull back to enter, the price might leave without you.
Exits: Set the Stop Loss 1 ATR above/below the high/low of the nearest swing to the signal candle on both positions. The risk on the trade is called 1R. Set the Profit Target on position 1 at 1R, and no profit target on position 2. Move the SL to BE or better once the price hits 1R. Trail the SL on position 2 behind the nearest swing point or 1 ATR above/below a moving average.
Risk Management: Remember that trades shouldn’t have to get through many obstacles in order to reach the first target. Use a pull back entry if needed, and be sure to follow the rules for trading while in a drawdown. Don’t have more than 3 open trades at risk at one time. Also, don’t take multiple trades in the same direction in the same currency unless you divide the risk among all the trades.
Money Management: Start trading with 1% risk per trade, and increase it or change money management strategies only after you have confidence in your trading and the plan. Staying in the game is the key to becoming successful so let’s walk before we fly.
That is the whole strategy in a nutshell. Keep your execution and trade management as simple as possible and fewer things can go wrong. Remember, it is impossible to win every trade and each trade has no bearing on the next. Only through a large sample of trades can you see how you and the strategy is performing. Probability only works that way and not day to day, trade to trade. Accepting risk completely will free you from the fears and anxiety many traders experience while in a trade. We are confident that working with Crush Pro Teams will help you rise to the trader you desire.
Setting up your charts: MT4 Trading Platform
The 1550 strategy focuses on price action around the true value zone as defined by the 15 EMA & 50 EMA. Below are some indicators we find useful in implementing the strategy. They are not required so you are welcome to use them if you like. Some indicators are already listed in the MT4 platform.
To download the Crush 1550 Template for MT4 click here crush1550-template
To install the indicators and template files, extract the files, go into the MT4 File Menu, and click Open Data Folder. Once it is opens, place the template in the templates folder and the indicators in the Indicators folder which is found by clicking on the MQL4 folder.
Average True Range (21): ATR measures the bar size of the last () bars and then averages it. It will rise and decline based on the volatility of the market. It is listed in the indicators.
Relative Strength Index (10): RSI is a momentum indicator and measures the recent price changes to evaluate overbought or oversold conditions. It is used for confirmation and not for entry or exit signals.
ADR_custom: This indicator displays on your chart window and measures the average daily range. It also shows the information in the top left corner of the chart. A market that reaches the ADR isn’t likely to continue that day unless it is a very strong move. Watch what the price does around those levels and if your target is beyond it, you might want to adjust it.
B-clock: This is a count down clock which sits next to the current bar. You see exactly when the current candle will close and the next one opens.
Crush1550 Template: This template will install all the chart settings to help you get started but feel free to change any of them to your preferences. To add it to your chart, right click on the chart and scroll over Template. Then click on Crush1550 and the template will be applied to your charts.
Communication is critical to your progress. There are many ways to get help from us, your teammates, or anyone on Team Orange through the forums, course discussions, slack or any of the traditional methods. The time to get your questions answered is now.
This is the end of the 1550 Strategy details. Once you have marked each lesson complete, go back to the Main Course Menu and take the final quiz to test yourself that you understand the strategy and what it takes in order to successfully implement the plan.