The Domino strategy is most suitable for trading on a non-volatile market. The system itself is easy to follow, and it does not require the trader to have in-depth knowledge of currency markets.
Why should you use this strategy?
As we have already said, this strategy is pretty simple, and it is perfectly suited for beginners. The system can be used effectively to trade most assets, and if you clearly adhere to the fundamental principles of the strategy you will be able to generate a good profit. It does not require that you perform a fundamental and technical analysis. It is based on superficial price observations: the more stable the price, the better.
How can I make trades using the Domino strategy?
A candlestick chart is used for trading. To begin with, we need to find an asset with a flat price. The movement of the asset should be horizontal for at least an interval of one hour.
The signal to open a trade is the alternation of red and green candles by at least an eightfold magnitude. We open a trade with a long or short position depending on the color of the final candle in the series. If the candle is green, then we open a trade with a short position, and if the candle is red, then we open a candle with a long position.
In the example, the eighth candle is red, so it means that we should open a trade in the opposite direction (long position).
- Expiration: 1 candle
- Investment: 5% of the amount of the deposit