One of the best ways to catch early reversals with amazing risk-reward ratio.
▶️WHAT IS THE MATRYOSHKA TRADING PRINCIPLE?
The Matryoshka Principle is a free high risk reward ratio trading strategy which focuses on multi time frame divergence analysis.
▶️ WHY IS IT SO PROFITABLE?
The idea is to lock the price in a very tiny range and catch the reversal of the trend of the higher time frames, on the smaller time frames.
Having that edge on our side, even if the win ratio is anywhere between 40 to 50 percent, we are still able to extract a lot of pips from the markets.
Once the move happens, you will see very fast and impulsive moves.
▶️ WHY IS IT IDEAL FOR GROWING SMALLER ACCOUNTS?
This forex strategy is ideal for growing small accounts due to the high risk-reward ratios that the entries offer.
▶️ COMPONENTS OF THE STRATEGY
Divergence is the main component the backbone of this trading strategy.
Divergences are ideal tool for this purpose as they tend to ‘alert’ for reversals in overall trend or pullbacks.
▶️ WHO IS THIS TRADING STRATEGY FOR?
The strategy could be easily applied by beginners as well as advanced traders.
▶️ IMPORTANT TIPS
That advice should actually be applied to almost any trading strategy/system or method that you will ever use. LEVELS! It all starts from a price level and ends with a level.
Levels are nothing more than key support and resistance zones that we can find using different trading tools such as fibonacci expansion, fibonacci retracement, trend lines (especially trend lines from the higher time frames). Also pure price action. Levels where we can see the price clearly stopping or bouncing off of. If it happened before, and the market respected a given zone for some reason, statistically, chances are it will happen again.
Another extremely important advice is that levels are never a single price (for example 1.2530). Levels are always a zone or a buffer. Could be 5 pips or 5 points could be 50 pips or points.
▶️BEST PAIRS AND INSTRUMENTS TO TRADE WITH THE MATRYOSHKA PRINCIPLE
Avoid the trending assets in nature (GBPNZD, Oil, NZDCAD etc) unless you can identify a range. If you dedicate some time and do a little research backtesting different financial assets and markets, you will start identifying pairs which are simply breaking and invalidating divergences for at least 3 times on average before the actual move happens.
On the other hand there are instruments which will almost immediately react to even the first divergence that would appear.