The Panca Eagle Strategy is based on breakout levels. The core idea is to identify the previous market range and then trade its breakout. All you need to do is wait for the green zone breakout and confirm it with other indicators before entering a trade.
Input Parameters
Market: Forex
Currency Pairs: EURUSD, GBPJPY
Timeframes: M30, H1
Indicators: EMA(5) and EMA(13), RSI(14) with levels 45-55, Toptrend (to avoid false signals)
Strategy Type: Intraday
Protective Orders: StopLoss, TakeProfit, TrailingStop
Chart Setup
To properly set up the indicators for analysis, use the trading template by following these steps:
- Extract the archive available for download at the end of the article.
- Copy the template file into the templates folder.
- Move the indicators into the MQL4 -> indicators folder.
- Restart your trading terminal.
- Open the chart for the desired currency pair.
- Apply the template named BP Trade.
The chart should look like this:
Panca Eagle Strategy Rules
1. Wait for the red box to form.
2. Only one buy and one sell trade per day.
3. Risk no more than 5% of the total deposit.
4. Minimum TakeProfit is 10 pips. For larger TakeProfit targets, set a TrailingStop of 15 pips after gaining 30 pips.
5. StopLoss is set at 30 pips.
Buy Trade Entry Rules
To open a Buy position, the following conditions must be met:
1. EMA(5) crosses above and stays above EMA(13).
2. The RSI indicator is above the 55 level.
3. Price breaks above the upper green line.
Sell Trade Entry Rules
To open a Sell position, wait for these signals:
1. EMA(5) crosses below and stays below EMA(13).
2. RSI is below the 45 level.
3. Price breaks below the lower green line.
To avoid false signals, the Toptrend indicator can be used:
– Buy only when Toptrend is blue, while also meeting all the buy conditions above.
– Sell only when Toptrend is red, while also meeting all the sell conditions above.
The Panca Eagle breakout trading strategy is quite straightforward and suitable even for beginner traders. If a fixed StopLoss does not yield enough profit, it can be replaced with a stop order on the opposite side of the channel.
