DRIFT SHIFTER Trading Strategy 5M V1.0
First let's talk about how to install the template and indicators. Inside our package you will find the 3 folders.
SOUNDS: This folder contains custom sound alerts that are different from those generic alerts provided with MT4 so as to help you distinguish this system from others.
Oscillations UP/Down = the start of a drift
Buy / Sell = MA crosses that confirm the drift not signal an entry so please read the entire process.
Place the contents of this folder into your MT4\sounds\ directory under MT4
Indicators: This folder contains the ex4 indicators that should run under the 600 build of MT4. copy all 3 files to the MQL4 and indicators directory.
Template: This is the template file that brings all this stuff together on a chart to look like the picture below. Place the template in the MT4\Templates directory
NOTE: You should see other template icons here if you are copying to the proper directory
Understanding the logic first
OK This is the first free binary Options strategy we have done since the Build 600 or better on MT4 and it is an improvisation on an idea that we spotted while surfing a Binary Options forum and converted over from the think or swim charting platform. Before I lay out the rules I want to share the logic behind the trading idea. Firstly there is a camp of traders who simply believe that trend really does not exist at all. They view the market as more of a constant wave moving all around a repeating circle of events. Conceptually this can help you see the market as more of a search for harmony and balance rather than a linear journey with tops and bottoms.
Do you catch my drift?
Back in the day a popular urban phrase was do you catch my drift. This is a way to ask if someone can spot where you are going with a topic? Drift shifter is all about using our Oscillating CCI along with MA arrows to spot the drift of the market. We are going to put the notion of a linear trend out of our mind and picture instead a drift all around the zero line in a circle. So a market drifting down will be shown as a red oscillation below the zero line and a market drifting up will be our green oscillation on the CCI .
Now let's find confluence with the drift
Confluence is a technical trading term where one or more indicators ( including PA ) agree on a more probable outcome. Another way to look at confluence is from a more natural definition of where two rivers of equal size form a juncture. So let's bring in two EMAs for a crossing of the fast and slow moving averages to confirm our CCI oscillator based on deviations. When these two indicators ( rivers ) form a juncture ( agreeing on the drift of the markets ) then we will wait for one last ingredient. A ripple against that drift ( AKA a retracement ) and expect the drift of the waters to continue regardless of that ripple until we see a shift into a new phase ( hence the name drift shifter ). Now that we essentially have the concept out of the way lets just cover some rules and tips.
1. CCI Oscillator should be below the zero line and the stronger the better
2. Then we wait for confluence from a down RED arrow in our chain of events
3. We then wait to see the ripple raise the market UP into the channel in the best of worlds over or above the yellow Neutral line all the way up to the red line at the top.
1. CCI Oscillator should be above the zero line and the stronger the better
2. Then we wait for confluence from an up GREEN arrow in our chain of events
3. We then wait to see the ripple push the market DOWN into the channel in the best of worlds over or below the yellow Neutral line all the way down to the green line at the bottom.
1. Stronger safer signals will occur less often but follow those rules to the letter. Another tactic to generate more trades is to take touches of the EMA lines or simple candle pullbacks when you can see that we are in a strong drift cycle.
2. Always try to wait as long into the 5 minute candle as you can before the entry. Another tactic is to take 1/3 of your position 3 minutes in if you are at a very good position and do the remaining 2/3 closer to the end of that current candle.
3. avoid tight extremely low volatility areas. You can spot them in the price action if the candles are very small and the channels are close compared to a previous area. Wait for a note worthy move to form the retracement ( ripple ) against the drift that sticks out like a sore thumb in the middle of those smaller candles and after you catch the first of such moves do not trade again until you are more sure the drift is not changing over all.
Below is a fast 2 PUT trades taken well into a drift south ( this is late in the drift and could have been better ).
This is a setup on a chart 2 entries taken last one right by the neutral line
[CLICK] image to Zoom In/Out
These are those trades on the Markets world broker. Please note that these were at the same expire time and generally I would not advise this unless you are legging into a bet as we mentioned in the tips 1/3 taste 2/3 near candle finish.
[CLICK] image to Zoom In/Out
remember that we are not trying to predict a trend instead we are trying to find a note ( entry ) that will be good harmony in the next 5 minutes if the markets song ( drift ) continues the same. I hope some people can find some use for this new little template that we are sharing here on our site. Also join in the discussion in our forums we are happy to elaborate more as needed.
NEW UPDATES: We recently added what we call the grey area to our template as well as the ability to set the CCI to a different time frame. This is a table of all the time frames and codes to use them.
This is a recent video that covers a lot of ideas of how to use this template and manage your risk.
Alfred and David
your binary options tutor team