We are trading the Stochastics entry for 2007 to show you the results.
The risk setting for the Robot Trading System is 8 and this is an automated video.
The Stochastic is an oscillator, that is a special kind of indicator that is not shown in the chart itself, but in a separate window below.
An oscillator is an indicator that usually shows a normal range and some extreme conditions.
We are going to use the Stochastic oscillator to create buy or sell signals for our automated system.
Whenever the red and the blue line cross above the upper dotted line, that will produce a sell signal, because we consider the currency pair to be overbought.
Otherwise, if the crossover takes place below the lower dotted line, we expect the price to rise, so we are going to create a buy signal.
Most traders use the oscillator in combination with other signals, but in our case this is the only signal we need for our automated system.
Indicators produce signals based on past events, so there is no perfect entry, but in our case that signal will work as good as any other entry, because we achieve good results with it.
If you are interested in trading results, maybe you want to watch the other performance videos on RobotTradingSystem.com – or wherever you get your trading performance videos…