Hey fellow traders! Today, we're diving into an exciting trading strategy based on the popular ZigZag indicator and pending orders: the Last ZZ50. This approach can add a fresh perspective to your trading game, so let’s break it down.
The concept of the Last ZZ50 strategy first surfaced in a forum discussion, which you can check out here. The brains behind this strategy are Vitaly Muzichenko and the MQL5 coding wizard, Vladimir Karputov.
So, how does the Last ZZ50 strategy work? The core principle revolves around analyzing the last two segments of the ZigZag indicator, which we’ll call AB and BC. It’s important to note that the AB segment is still forming and can shift, meaning the position of point A is not set in stone.
The strategy places pending orders in the middle of the AB and BC segments to capitalize on potential market movements:
- When the pending order on the AB segment triggers, it signals the continuation of the trend indicated by BC.
- Conversely, if the pending order on the BC segment activates, it indicates a potential reversal of the trend.
Since the AB segment is still adjustable, we constantly modify the pending order to keep it centered within the AB range.
For managing open positions, we utilize a trailing stop strategy. Here’s the deal: we wait until the position moves into profit (excluding commissions and swaps) by a minimum of (Trailing Stop + Trailing Step) points before activating the trailing function.
This Expert Advisor simplifies the search for peaks by adding the indicator to your chart, along with three vertical lines that outline points A, B, and C:
Ready to give the Last ZZ50 strategy a shot? It’s all about staying sharp and adapting to market movements. Happy trading!
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