The Puria Method trading strategy has existed for a very long time. Many stock traders prefer it for its simplicity and efficiency. If you have never heard about it or have never used it, now it time to try it! Let's see how it works.
Strategy Template Setting
The main principle of the Puria Method is to follow the trend. The Moving Average indicator will help you to determine the trend, and the beginning of each new wave of price growth and reduction is easy to define using the MACD indicator (Moving Average Convergence/Divergence).
Open the Binomo platform and select the MACD indicator:
Set the following parameters:
- Fast Length – 15
- Slow Length – 26
- MACD length – 1
Now, we need to apply two Moving Average indicators to the quotes chart.
The first one should be set as follows:
- Length – 75
The second one should be set as follows:
- Length – 85
How to trade using this strategy
Trade UPWARDS if:
- Moving averages have crossed in the upper direction and are located under the quotes.
- The MACD line has crossed the zero level upwards.
Trade DOWNWARDS if:
- Moving averages have crossed in the lower direction and are located above the quotes;
- The MACD line has crossed the zero level downwards.
Expiration Periods and Money Management
We recommend you to choose a 5S time frame and the expiration period of 1–2 minutes.
Do not forget about risk management! Do not use more than 3% of the funds available on the trading account when making a transaction!