The Radar Signal Trading System For MT4 is a very nice looking system which is based on trading in the direction of the trend.
The system tries to be a complete trading helper which defines entry and exit price levels. Providing entry and exit price levels is very rare because basically you could develop an Expert Advisor based on these signals of the system.
Indicators used by the Radar Signal Trading System For MT4
The system comes with 4 indicators and 1 template. The names of the indicators are:
Radar Signal Mod.ex4
Those indicators are loaded on the chart if you load the template “radar signal trading system.tpl” onto your chart.
Where to use the Radar Signal Trading System For MT4?
The system is designed to be used on the time frames M30 and H1. This makes very much sense because it’s a short term trading strategy that is partially based on the open price of the actual trading day.
According to the developer of the system it can be used on any currency pair, on Gold and Silver and the indices S&P 500, DAX, FTSE. This will bring you plenty of trading opportunities during the month.
Buy entries with the Radar Signal Trading System For MT4
The radar signal indicator will give you a signal on the chart when a buy order should be opened. You still need to check if the stochastic histogram indicator shows green values and if the price is above the daily open line.
Green values of the stochastic histogram indicator show that price action has an upward momentum. You want to jump on this upward momentum and place your stop 30 to 40 pips below of the entry price.
According to the developer of the system you should exit the buy trade when the blue horizontal line with caption “Target” is reached.
You can either configure the target price of the position to the price level of the blue line or you can wait for the price to reach this level and then close the position manually.
Sell entries with the Radar Signal Trading System For MT4
Sell entries with the system work similar but into the opposite direction.
As soon as the radar signal indicator tells you to open a sell trade you will then first check if the price is below of the open price of the actual day. You will then also check if the stochastic histogram indicator shows you a downward momentum by drawing red values.
It these checks are positive then you can open a sell trade. Depending on the volatility of the instrument you should place the stop 30 to 40 pips above the actual price.
Configure the target price of the opened position at the price level of the blue line with name “Target” or wait until the price reaches this level and make a manual exit.
Improving the Radar Signal Trading System For MT4
I am a big fan of filtering the best setups instead of blindly following a mechanical rule set that looks only at the signal generating timeframe. Filtering, if done right, brings you a higher quality in your trading. You will on average have a higher winning percentage and bigger winning trades.
To filter the best setups, I usually use edges from bigger time frames the so called “bigger picture”. Such edges can be regular divergences indicated by the MACD which usually tend to reverse the direction of the trend. And I often use support / resistance price levels from higher time frames which also tend to reverse the direction of the prevailing trend.
Filtering the best trades with MACD Divergences
Because this system is designed to be traded on the timeframes M30 and H1, a good time frame to search for regular divergences with the MACD indicator would be the time frames H4 and D1.
How the filtering works?
For a good filtering you trade only those buy signals of this system if they occur within a regular bullish divergence of H4/D1.
For sell trades you select only those signals if you spot a bearish divergence with the MACD indicator on H4/D1.
Filtering the best trades with Support / Resistance levels
You can also spot Support/Resistance levels on H4 and D1 to filter the best signals.
For buy trades: If the price is approaching a support price level and gets rejected to the upside then you can trade the first buy signal of the system which will have a higher quality.
For sell trades: If the price approaches a resistance price level and gets rejected to the downside then the next sell signal of the Radar Signal Trading System For MT4 will be of highest quality.