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In this article, we will analyze the indicator trading algorithm, which since 2010 has been known as the Lawnmower.
Initially, this technique was intended to work on a fifteen-minute timeframe and was built on the basis of four special indicators.
However, the strategy quickly lost its popularity, since many beginners could not earn money with its help.
Here are the main claims:
- High frequency of trading signals;
- Excessive delays of indicators;
- Low accuracy of transactions.
All these problems were taken into account and an updated version of this system was released. It's called "Lawn Mower 2.0"!
And here are the improvements that have been made:
- The time interval has been increased;
- One basic oscillator and an indicator for determining horizontal levels have been removed from the system;
- The supernova PowerFuse oscillator has been added to replace the old instruments;
- As an obligatory condition, the “Step” candlestick pattern was introduced, the appearance of which is considered a strong bid to continue the established trend.
Customizing the Lawnmower 2.0 Strategy Template
First you need to install the Metatrader 4 terminal on your PC. After that, open the chart of any currency pair and set the hourly time interval (H1).
Next, you will need custom indicators and a Lawnmower 2.0 strategy template, which can be downloaded from the link below.
If the strategy is set correctly, then three indicators will be displayed on the chart: PulseSlope, RVI and PowerFuse.
Purpose of indicators
- PulseSlope: Determines what is the trend in the market.
- RVI: Removes "market noise" and allows you to find a profitable entry point.
- Power Fuse: Combines the functions of the two indicators listed above.
View of a properly prepared vehicle "Lawn Mower 2.0"
Candlestick pattern "Step"
This candlestick model was added to the system on purpose. It amplifies the signal many times and allows you to determine really strong entry points.
Let's analyze the logic of the step pattern:
- 1st large candle. The price moves along the trend and at some point rests on a strong horizontal level.
- 2nd small candle. At the level there is a struggle between buyers and sellers.
- 3rd large candle. The level is taken and now the price can freely continue moving in the original direction.
It doesn't matter what color the body of the second candle will be. It may not exactly coincide with the close of the first candle and the open of the second candle. Below you can see the conditional scheme, according to which the described candlestick pattern is implemented.
The appearance of the “Step” pattern means that the price has crossed a strong level and is ready to move further along the trend.
Drawing up a trading algorithm
Looking for upside entries
PulseSlope. The indicator line must meet the following conditions: be located under the chart, turn green and be in a growing state.
RVI. The oscillator bands should acquire a clear upward angle.
Power Fuse. The blue dot should change its color to yellow.
Pattern "Step". A pattern has formed that indicates a continuation of the uptrend.
Point of entry. If all the above conditions match, we enter immediately on a new hourly candle.
On the chart, the pair pound / dollar. StopLoss was 30 points, and TakeProfit was 120 points.
The profit taken is 4 times the potential loss.
Looking for entries for a fall
The PulseSlope line should decrease, turn red and be located above the candlestick chart.
The RVI indicator is pointing down.
The red dot of the PowerFuse oscillator should turn yellow.
We are waiting for the formation of the descending “Step” pattern and open a position on a new candle.
StopLoss = 25 pips and TakeProfit = 125 pips. The resulting income is 5 times the size of the probable loss.
Recommended couples: all currency pairs;
Stop Loss: 1% from a trading account;
Take Profit: 2-5 times more stop loss;
Time to trade: any;
Recommended Broker: FinMaxFX
Template + indicators
To download the Lawn Mower 2.0 strategy for free, you need to leave some comment on this article, immediately after that a link for downloading files will appear here.