OFR 30 System

Currency prices normally rise and fall many times within a trend. When prices climb or fall too far too fast, momentum can stall and profitable short-term counter-trend moves can occur. OFR 30 gives traders an automated trading strategy to take advantage of this phenomenon.

What are the Features of OFR 30?

How does this System work?

OFR stands for "Outside FAMA Return".   OFR 30 is designed for  30-minute charts, and may be useful on other timeframes as well.  The systems uses proprietary filters to indicate trend momentum.

OFR 30 Trades Counter to the Trend

In a downtrend trend, prices can close below the Lo Band.  When trend momentum slows and price closes back above the Lo Band then OFR 30 goes long at the close - 3 pips.  A take profit order is then placed at the FAMA Midline.

Within an uptrend prices can close above the Hi Band.  When trend momentum slows and price closes back inside the band then OFR 30 goes short.  A take profit order is then placed at the FAMA Midline.

Example - How OFR 30 Works

Price closes inside FAMA Hi Band, after having closed above it on previous pricebar, and continues falling to FAMA midline. To trade using the system you need to understand its signals as closely as possible.

Bullish Rules:

  1. Price closes below the Lo Band and then closes above the Lo Band the next pricebar.
  2. Proprietary filters show trend momentum slowing.
  3. OFR 30 enters a buy order at the closing price - 3 pips.
  4. Price falls below the limit order and OFR 30 goes long.
  5. A Profit Exit order is placed at the latest closing value of FAMA Midline.

Bullish Signal:

A popup box appears showing the system is long.  And a circled blue up arrow appears on the chart.

Once the system is long, it places a profit exit order at the latest price for the FAMA Midline indicator.

Example:

OFR 30 goes long USDCHF at 1.3102.  An alert window shows the position and that a take profit order is placed at the FAMA Midline.  A circled blue up arrow appears on the chart.  Note: The system uses the latest closed bar to get the value of the FAMA Midline.  Therefore the profit target changes.  When a new pricebar closes, the system changes the take profit limit price to the new FAMA value.

The system can exit long positions in three ways

  1. At the profit target,
  2. At the stop loss, which is the entry price minus 40 pips,
  3. Or if a sell signal occurs.  Then the system sells out the long position and goes short. The system uses the first exit that occurs and cancels the other orders.  A popup window appears as soon as the exit order is complete.  And a grey downward pointing arrow appears on the chart.

Bearish Rules:

  1. Price closes above the Hi Band and then closes below the Hi Band on the next pricebar.
  2. Proprietary filters show trend momentum slowing.
  3. OFR 30 enters a sell order at the closing price + 3 pips.
  4. Price rises above the limit order and OFR 30 goes short.
  5. A Profit Exit order is placed at the latest closing value of FAMA Midline.

Bearish Signal:

A popup box appears showing the system is short.  And a circled down arrow appears on the chart.

Once the system is short, it places a profit exit order at the latest price for the FAMA Midline indicator.

Example:

OFR 30 goes short USDCHF at 1.3163.  An alert window shows that the system is short and that a take profit order is placed at the latest FAMA Midline.  A circled down arrow appears on the chart.  Note: The system uses the latest closed bar for the value of FAMA.  Therefore the profit target changes.  When a new pricebar closes, the system changes the take profit limit price to the new FAMA price.

The system can exit short positions in three ways:

  1. At the profit target,
  2. At the stop loss, which is the entry price plus 40 pips,
  3. Or if a buy signal occurs.  Then the system buys back the short position and goes long. The system uses the first exit that occurs and cancels the other orders.  A popup window appears as soon as the exit order is complete.  And a grey downward pointing arrow appears on the chart.

What are the Backtested Results?*

General Tips

How do I put the System on other Charts?

The easiest way to apply the signals is to highlight "Indicators", then go to the bottom of the list and click on "Intelliscript".  A section will open showing all FX-Strategy Systems.  Click on the one you want to apply and it will appear on the chart. 

To take a system off of a chart, left click on the system name.  A small box will popup that allows you to delete the system from that chart.

How do the Signal Alerts appear?

A popup window announces entry and exit signals.

Arrows and small triangles appear on the charts to show the signal alerts, as follows:

  1. Circled Up Arrow: Buy Candle
  2. Blue Triangle: Buy Alert Price
  3. Circled Down Arrow: Sell Candle
  4. Red Triangle: Sell Alert Price
  5. Grey Arrow: Exit Candle
  6. Grey Triangle: Exit Price

If you wish to turn the popup window feature off or on, go to "Setting" "Options" and under the "General" tab take the checkmark out next to "Enable Popup Window for Custom Alert".

*THIS RISK DISCLAIMER IS REQUIRED READING FOR ALL TRADERS*

FX-Strategy, Inc., FX-Strategy Pro Charts, and any related products, are analytical tools only and are not intended to replace individual research.  Unique experiences and past performances do not guarantee future results! Testimonials are non-representative of all clients; certain accounts may have worse performance than that indicated. Trading foreign currencies involves substantial risk; and there is always the potential for loss. Your trading results may vary.  No representation is being made that any software or training will guarantee profits or not result in losses from trading.

Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particularly trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk. Variables such as the ability to adhere to a particular trading program in spite of trading losses as well as maintaining adequate liquidity are material points which can adversely affect actual real trading results.

Be sure to closely read and understand the risks of foreign currency trading as described on the FX-Strategy website.