Bonus System

1. Open your Meta Trader platform and load up chart window of any currency pair in daily
timeframe. In this instruction, EUR/USD pair will be used

2. Drag the Relative Strength Index indicator from the Navigator Panel on the left hand
side onto the chart



3. Drag the Moving Average Indicator from the Navigator Panel onto the RSI window and
set it as an 8 EMA ( Exponential Moving Average)


Then you have the following chart


4. Next , drag the Average True Range Indicator onto the RSI windows



5. Add the 28 EMA to the main chart window and your chart will look like




Long entry rules
Enter your long trade when the RSI crosses its moving average. We BUY when RSI crosses
the moving average from below (red box and line). It is vital to note that a cross is only
validated after the daily candle has closed. We dont take a trade on the day when the cross
has formed as it may disappear later in the day.
We enter the trade as soon as the new candle is formed i.e. at the opening price.





Short entry rule
Enter your short trade when the RSI crosses its moving average. We SELL when RSI crosses
the moving average from above (blue box and line). It is vital to note that a cross is only
validated after the daily candle has closed. We dont take a trade on the day when the cross
has formed as it may disappear later in the day.
We enter the trade as soon as the new candle is formed i.e. at the opening price.



Stop loss
We will use the percentage of the ATR (Average True Range) as stop loss level. The ATR
shows numerically volatile a currency has been recently. A small ATR (30-50 pips) shows the
daily ranges have been small, this currency pair is moving very little. A higher ATR (100-200
pips) shows a currency pair on a rollercoaster ride, either in a strong trend or ranging wildly.
Obviously for a high ATR we need a bigger stop to give the trade some room to breathe. The
ideal stop loss level is a stop of 75% ATR(20)



Exit trade
No rules for exit in this method. You can just let the trade run for as long as you wish with a
moving stop loss or lose the trade at the end of the day.
Long Trades Examples
Example 1
In this example, the EUR/USD was traded. When the cross happened on this day, we just
waited for the next day and entered our long position at the opening. The ATR value at the
time we entered our trade was 0.0145 which means 145 pips, so our stop loss level was set
at 0.75 x 145 = 109 pips below the entry point. This trade was going up in out favor
direction and ran for 14 days when it was closed. The profit was 1500 pips


Examples 2
In this example, the GBP/USD was traded. When the cross happened on this day, we just
waited for the next day and entered our long position at the opening. The ATR value at the
time we entered our trade was 0.0182 which means 182 pips, so our stop loss level was set
at 0.75 x 182 = 137 pips below the entry point. This trade was going up in out favor
direction and we closed our position immediately at the end of this day and profited in 300
pips.

Short Trades
Example 1
In this example, the EUR/USD was traded. When the cross happened on this day, we just
waited for the next day and entered our short position at the opening. The ATR value at the
time we entered our trade was 0.0158 which means 158 pips, so our stop loss level was set
at 0.75 x 158 = 119 pips above the entry point. This trade was going down in out favor
direction and ran for 4 days when it was closed. The profit was 1230 pips


Short example 2
In this example, the GBP/USD was traded. When the cross happened on this day, we just
waited for the next day and entered our short position at the opening. The ATR value at the
time we entered our trade was 0.0182 which means 182 pips, so our stop loss level was set
at 0.75 x 182 = 136 pips above the entry point. This trade was going down in out favor
direction and ran for 5 days when it was closed. The profit was 1530 pips