Originally posted by Bogdan G on bots.com school. Click here
for the full review.
How to use the “Fractal Guru Strategy”
The strategy is relies heavily on the ADX and we only take Calls when the ADX is rising, the Green dotted line is above the Red dotted line and a complete Fractal appears (all 5 candles are closed). As an extra precaution, we only trade if the candle corresponding to the Fractal arrow has a long wick pointing towards the Fractal and a short wick on the other side.
Wrapping it up
I like trend following strategies because they provide good and pretty safe entry points, but I don’t feel that the ADX is the best trend indicator. At least, not used as a main indicator in a strategy. Fractals…too complicated for what they actually do and can be easily re-painted (re-painting occurs when an arrow appears and then disappears when the next candle is printed). Overall, the principle behind it is good, but the tools it uses are just too subjective and can confuse traders. My conclusion is that the individual trader who uses this strategy makes all the difference and it can be profitable for some traders while others will just thrash it and move on.