Everyone wants to make money trading Forex consistently and, preferably, effortlessly. But very few traders are ready to perform technical analysis on a daily basis, wait for market entry signals and monitor their open positions. Every trader wants to find a perfect trading system that would bring a stable income and would be both time-efficient and effective. Therefore, most beginner traders wonder whether there is a simple trading strategy that does not require a lot of knowledge and expertise and which does not take much time. We will answer that there is! It’s called the “Empire” trading strategy.
The “Empire” trading strategy is very simple, any trader can use it in their trading. This strategy applies the approach of statistical observations. It doesn’t use any indicators and other auxiliary tools.
Main features of the “Empire” strategy
First of all, it’s worth noting that this indicator-free Forex system works well with all currency pairs and trading instruments without exception. There is only one rule – you should use it on the daily timeframe (D1) only.
The average position holding time (duration of a trade) is one week. Sometimes trades are closed earlier, but they are never closed later. Each new trading week is a new cycle, and new conditions are formed for opening trades, so you should never transfer your positions from the previous trading period to the new one. Using this strategy, you can open from 4 to 8 transactions a month per one financial instrument.
If you ask, what is the most suitable currency to trade using the “Empire” trading strategy, the answer is any. Empire shows excellent results, regardless of the chosen currency pair.
The main idea here is observation. It should be noted that the local extremums of the week fall both at the beginning of the week and its end. So it’s important not to miss the moment when a new local extremum forms on Monday. After that, you can enter the market by placing a stop-loss on this line and then close all your transactions on Friday.
Of course, no trading system can consistently generate profits, there still will be some failures and you should be ready for it. As for the Empire strategy, the minimum and maximum price values here can be observed in the middle of the week.
Also, keep in mind that the take-profit is not fixed. In this case, it cannot be done since orders are closed on time, or rather before the market closes.
When to enter the market
The signal candlestick here is a daily candle that appears on Monday. When the second trading day begins, you need to place two pending orders at the high or low of Monday’s session. On the other line, you need to place a stop-loss intended for the second trade. In addition, you need to install a special filter to spot false signals. Pending orders placed 10 pips apart from the local extremum will act as such a filter.
Nothing else is required from the trader’s side. It doesn’t make sense any sense to constantly monitor the market. Also, you don’t need to delete 1 trade if the second one is opened. The market is volatile, the price can break one level and make a sharp reversal towards another. With this scenario in mind, the second order is placed, as well as stop-loss for the first order – this is done to limit drawdowns.
Tips for using the Empire strategy
- Support/resistance levels can be used to filter market entry. If there is a strong barrier on the way, it’s better to avoid entering the market.
- If important fundamental data is expected to come in during the week, for example, the Federal Reserve interest rate decision, it is better to refrain from trading or exit the trade before this event. For example, if the labor market report is scheduled to be released on Friday, then the trade should be closed on Thursday.
- If Monday’s candlestick is very large, you shouldn’t enter the market either. There’s a possibility that the instrument has already exhausted its movement potential and lost momentum.
- Yes, and don’t forget about money and risk management. Trading using a weekly chart is characterized by rather big fluctuations – your trading instrument may pass a long distance from the entry price. Therefore, your trading volume should be minimal.