The “classic” DailyFX PLUS Trading Signals is one of the most popular resources at DailyFX. It follows six diverse strategies and highlights trading signals for 14 popular forex instruments. One of its strategies is called Range2.
Range2 is designed to be used in heavily overbought or oversold markets. These conditions are usually found in range-bound markets, where price is moving up and down between two levels. This strategy chooses its trades based on the Relative Strength Index (RSI), and filters those trades using FXCM’s proprietary Speculative Sentiment Index (SSI).
FXCM’s SSI can be an excellent tool to gauge trader positioning and sentiment in the forex market. Using the SSI allows Range2 to fine tune its trades, making sure that price and trader sentiment are at desirable levels.
What does this app do?
The Range2 Strategy is an automatic trading strategy that buys and sells based on the trading signals generated by the “Range2” strategy.
The Range2 system buys and sells depending on the 28-period RSI levels on a 60 minute chart.
A buy trade is opened when the RSI drops below 30 and the SSI confirms an oversold market.
A sell trade is opened when the RSI rises above 70 and the SSI confirms an overbought market.
Range2 does not use profit targets, instead all positions are closed using a trailing stop loss. That trailing stop loss is calculated individually for each trade based on the 14-day Average True Range (ATR) for that currency pair.
The strategy will only have one position open, per currency pair, at any given time. If an existing Range2 trade is open, and due to price movements a new signal is created in the opposite direction, the strategy will close the first trade and open a new trade provided the above trading logic is met.
The Range2 Strategy uses market orders to close positions. No stops or limits will appear in the Trading Station Desktop’s positions window.
Special Note: The Range2 strategy is able to trade on up to 13 different currency pairs at the same time. Users select which of the currency pairs to activate or deactivate for trading. Users that wish to have the Range2 strategy trade multiple different currency pairs only need to load the strategy once. Currency pairs (e.g. EUR/USD) can be switched on an off from the parameters window.
The following inputs are available in the strategy’s parameters window and can be defined by the app user:
The Range2 Strategy is available to trade on AUD/JPY, AUD/USD, CHF/JPY, EUR/AUD, EUR/CHF, EUR/JPY, EUR/USD, GBP/JPY, GBP/USD, NZD/USD, USD/CAD, USD/CHF, and USD/JPY.
The DailyFX+ Trading Signal Strategies get all of their trading information directly from the DailyFX+ servers.
It is not possible to backtest since none of the actual strategy logic is running on your local computer.
Each trade is generated first on the DailyFX+ Server. The DailyFX+ server then sends the trading signal to your
installation of the Trading Station Desktop. Lastly, your Trading Station Desktop places a trade automatically
based on those signal recommendations. Users are invited to forward test each strategy by using a free practice
demo account. For more information read the strategy’s User Guide.
The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results.
This Strategy is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM account is required (including free FXCM demo accounts).
There is no guarantee that the systems, trading techniques, trading methods, indicators will result in profits or not result in losses.
You must have Microsoft .NET Framework 4 installed on your computer. This software is included in the EA installation file.