How the 1plus3 Indicator Helps Us in Every Market Situation!

Last Updated: 29. Januar 2024By

After having clarified the essentials with the broker for trading and copy trading, I can now focus more on trading strategies. Ultimately, we should have an answer for all market situations. But how can we achieve that ideally?

We need to position ourselves as broadly as possible. According to the latest figures, my trading system in the currency pair EUR/USD covers over 20 percent of the forex market. That’s a large share of the „Eurodollar“ or „Fiber,“ as the pair is often called.

If I also take EUR/GBP or USD/JPY, we have an even larger concentration risk. After all, one of the most traded currencies is always involved. That’s why I will also take on another pair and try to find something suitable for it. One possible candidate is GBP/JPY. These are the third and fourth most traded currencies.

So we are already much more independent in case the euro or US dollar don’t perform as expected. The more flexible we are, the better. I don’t want my portfolio to be dependent on the US dollar.

This can of course be taken even further. If we have two different currency pairs, we can also add oil and gold. I am currently working on a strategy for oil in the 30-minute chart. In that case, there will be no trades for two weeks. Which is okay for me. As long as the system ends up in the green.

Less is more
That’s the ideal scenario. Not a signal in every underlying asset every week – but lucrative trades. We have already learned that too many trades only make the broker rich. Of course, the overall result can still be positive. But I prefer to cut out the best pieces from the market, which most traders are not willing to wait for.

Who has the patience to look at charts every day for two weeks and not trade? For most people, the urge to click the mouse is already there. Just to see something happen. I am happy to forgo that.

Or do you know of a profitable trading system that works better the more impatient you are? The market will still be here tomorrow. Next week too. We are not doing high-frequency trading. We are waiting for specific situations in the chart where a tailored system has won more than it has lost in the past.

That’s how simple the tactic can be described that can bring a profit at the end of the year. What sounds simple is usually difficult to implement in reality. That’s why clear rules are so important.

Why does the 1plus3 indicator work?
No indicator works long-term and in every market situation for a trading system. If that were the case, you would have heard of it by now. Much more important is that with the 1plus3 indicator, we can filter out a huge amount of data from the market and only take very specific situations.

An indicator serves as the basis, and 3 other indicators, which are used for very different market situations, must provide the same signal at the same time. If all of this comes together, something very similar often happens in the corresponding underlying asset.

That’s what I base my strategy on and that’s why the numbers from the previous backtests look very good.

If a soccer player always takes a free kick from the same position, he often hits the goal. Sometimes the wall is a bit higher or the wind is coming from a different direction, but the basic conditions are always the same.

That’s exactly what we do in trading. We automatically search for starting positions that rhyme and always take the same approach. That’s the signal of the indicator. The market will then show us whether we have a tailwind or a headwind when we take our shot. The goal is to score more often than not – then we will end up with a profit at the end of the year.