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The7 Strategy - Grail for Beginner Traders


Among the various trading systems available for free, only a few of them are effective in practice. For the successful application of such strategies, it is enough for the trader to carefully study the rules and simply follow the recommendations. One of these strategies is the The7 system. All traders will be able to use it in trading, regardless of experience.

Strategy Brief


There is an unwritten rule among traders: potential profit should exceed several times the potential loss. Thanks to trading with The7 strategy, this is really possible. This system is characterized by the following features:

Nivice traders are advised to pay attention to the mandatory recommendations:

Setting indicators


To make a trading decision, in accordance with the rules of The7 strategy, you will need to use 2 moving averages with different input parameters. The type of moving should be exponential, since in this case the indicator is more sensitive to tick changes in the asset value. When transferring indicators to the chart, you will need to set the following input parameters:

After installing the indicators, the chart should look something like this:

As you can see, sliding, with this application, are a kind of support and resistance lines, forming a kind of trend corridor.

Using oscillators or custom indicators to filter out false signals is not recommended. This can significantly affect the effectiveness of trade.

Rules for opening orders


Opening a Wu order is possible under the following circumstances:

To successfully open a Sell order, you will need to observe the following rules:

It is worth saying that successful trading according to The7 strategy is possible only in the medium term. This system is not suitable for intraday scalping. It should also be noted that Stop Loss on average is not more than 40 points, which is 2-3 times less than the expected profit.

Beginner traders should be aware that The7 strategy is indeed profitable, but false signals will still occur. We should be mentally prepared for this and not refuse to further use the system in trade. According to statistics, out of 10 signals for opening an order, only 2 are false.

Practical examples


To correctly understand the principle of trading, it is recommended to consider several practical examples:

The screenshot shows the price chart of the favorite currency pair of novice traders - EUR/USD. Period is D1 (each candlestick is formed during the day). The presented segment displays changes in the value of the asset for 3 months. During this period, 7 signals were issued for opening an order, of which only 1 was false:

If we consider trading pairs EUR/USD or AUD/USD, then the potential profit will be from 10% to 20% of capital per month. To increase profitability level, it is not necessary to increase the volume of transactions. It is enough to choose a financial instrument with greater volatility for trading, but at the same time, asset pricing should be stable. The best tool for earning the The7 strategy is the GBP/USD pair:

  1. Opening an order is not recommended due to the close position of the closing point of the signal candle to the moving Low.
  2. The signal to open an order is correct. Profit amounted to 120 points.
  3. A situation similar to that described previously in paragraph 1.
  4. Entering the market for the purchase and profit taking.
  5. Another example of a successfully open order.
  6. A good signal to open a deal Wu.
  7. A deal to fix profits.
  8. A situation similar to that described previously in paragraph 1.
  9. Opening a Wu order with profit taking.

Thus, the following advantages of the GBP/USD currency pair in comparison with EUR/USD can be distinguished:

Tip: when generating a signal to open an order, it is recommended to open a deal 20-30 minutes before the close of the daily candle (before spread expansion). This will make it possible to extract additional income from a positive swap, if such is provided for by the specification of the broker's contracts for the asset selected for trading.

The pros and cons of The7 strategy


Before practical implementation of The7 strategy, it is important to familiarize yourself with its main advantages and pay attention to some disadvantages. Among the advantages it is worth highlighting:

During testing of The7 strategy, there were no significant shortcomings. However, medium-term trading on timeframes from H4 or more, as practice shows, is not entirely comfortable for beginners. It is necessary to realize that although intraday trading promises more substantial profits, higher risks are also associated with it. Therefore, The7 system can be called one of the best strategies for novice traders. Following the rules presented will allow you to instill in yourself "trading patience", which is essential for a successful career.

The only disadvantage of The7 strategy can be called an insufficient number of trading signals - no more than 3 within a month. However, this problem can be solved if several financial instruments are selected for trading. If you select pairs with a zero-correlation coefficient, you will be able not only to increase profitability indicators, but also to diversify risks.

Additional recommendations


It was previously mentioned that using custom indicators or oscillators to confirm trading signals is not recommended. This is true, however, it is quite acceptable to use Price Action reversal candle patterns as a filter - a pin bar and Rails. Their complex usage with The7 system will allow almost unmistakably determine turning points on the price chart and use this to confirm the correct entry into the market.

Conclusion


The7 strategy is an effective, medium-term trading system in the foreign exchange market. The application of the trading rules for this trading strategy when working with stock assets, commodity raw materials or with cryptocurrencies is unacceptable.

Trading on the rules of The7 strategy is recommended primarily for novice traders. To achieve a stable profit, it is important to follow 2 simple rules:

Experienced speculators can use this system for extra profit.

Author: Kate Solano for Forex-Ratings.com

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