This strategy has a rich history. The prototype was the notorious Symphonie Trader, which was scolded for the fact that the indicators on the history are redrawn.
In Genesis Matrix, this defect was removed retaining all the best of the Symphonie Trader. The strategy is freely available, so it definitely should be considered.
Preparation for trading
The TS is fully indicative, and is based mainly on custom indicators. After downloading the necessary files in the archive, in addition to them you will find also a file with a template, it will be needed to manually set the Forex indicators. The setting of indicators is standard.
Trading strategy Genesis Matrix uses several indicators at once:
• 2 standard Stochastic indicators with parameters 11, 3, 3. One shows what happens on the 5-minute chart, and the second shows what happens on the M15.
• Heiken Ashi – converts the standard graph, smoothing out the noise.
• Indicator EMA with a period of 5.
• Pivot Points, those lines that you see on the chart are used as benchmarks for trading.
• Forex Genesis Matrix Strategy uses the same name indicator, it displays data from several indicators at once – TVI, T3, CCI indicator, GannHilo.
• Pro Arrows – a regular switch tender, draws arrows in the chart indicating the direction of the entry. In trade, you can work without it. Conveniently, it is invented with alert, so that the trader will hear a beep. If the signal is qualitative, then the arrows lag for a maximum of 1-2 Japanese candlesticks, so for forgetful traders, this is a good reminder. Without an alert in Arrows, Genesis Matrix’s strategy of signaling can not be reported.
List of indicators.
After adding all the indicators on the chart, you should get the following picture.
All indicators are added to the chart.
Initially, the Genesis Matrix trading system and its prototype were created under the trade during the London session. So the optimal result is achieved on the pairs CGB / USD, EUR / USD, EUR / GBP, EUR / JPY, AUD / USD.
You can apply it not only on 5-minute charts, you just have to deal with the indicators settings. In particular, you will have to change the TimeFrame parameter in MTF_Stochastic. If you work, for example, on H1, then it should display data from at least a 4-hour chart.
You can configure each of the indicators of the Forex strategy. The Genesis properties include settings of 4 indicators which it displays in a separate window.
Signals of the Genesis Matrix strategy
The rules will be considered on the example of sales. It is necessary that:
• the chart crossed the EMA from top to bottom and closed under the moving average;
• The 5-minute Stochastic came out of the overbought zone.
By default, the overbought / oversold zone is set to 80/20. There is no sense to change them at setting of values, for example, 70/30 receive an abundance of false signals, and 90/10 on the contrary – forces you to skip most of the transactions.
• A 15-minute stochastic must be sent in the direction of the transaction. In our case, both lines should be tilted down;
• on the Genesis Matrix, the cubes in all 4 lines must be red;
• in the role of an additional signal, the price can go from one of the Level Pivot.
Arrows indicator signals are used as additional signals. Often the arrow is formed already on the second-third candlestick after all the previous conditions have been fulfilled.
Example of sales according to the rules of the strategy.
In the example, the received signal is amplified due to the fact that the price is beaten off from the Level Pivot and at the time of execution of all the described signals appeared an arrow from the Arrows indicator. It was possible to slightly increase the lot in comparison with usual trade.
Stop-loss according to Genesis Matrix strategy is set for the nearest local maximum / minimum. As a guide for setting take-profit, you can take the nearest Pivot level, but the authors recommend using a trailing stop.
Authors for EUR / USD recommend activating the trawl after the price has passed at least 20 points in the profitable direction (this value is calculated on the basis of an average volatility of 80 points). This value can be recalculated on the basis of the 20-day volatility of the selected asset.
For example, if the price for 20 days is an average of 100 points per day, then the trawl size can be recalculated according to the formula 100 x 20/80 = 25 p.
The transaction should be closed manually if the opposite signal was generated or all 4 boxes on the Genesis indicator changed color to the opposite one. You can also focus on round levels, support / resistance lines, and so on.
The Genesis Matrix strategy sometimes allows to enter the market on the eve of a strong trend, so the use of a trailing stop is preferable.
We’ve considered above version of strategy 2.21, but on the internet you can find a more modern version of the Genesis Matrix. The rules remain the same, only the Genesis indicator changes and a new ASCT Trend indicator is added.
Indicators of the updated version of the strategy.
The only difference is that in the Genesis indicator the white color is replaced by blue, but the ASCT is built on the basis of Arrows.
Moreover, it shows data at once from two time intervals – with M5 (that is, it duplicates the indicator of Arrows indicator) and with M15. That is, you can slightly “unload” the main schedule and remove the switch from it.
Features of the Genesis Matrix
There is a couple of features in TS, which must be taken into account in the work:
• Trade should only occur during high volatility hours. In a quiet market, false signals go one after another, the TS is not suitable for trading in flat.
False signals on the “quiet” market.
• Forex Genesis Matrix Strategy does not recommend taking signals in which the price has moved too far from the moving average. This indicates that most of the movement has already passed and a pullback is possible. We ignore the signal and wait for the next one.
• If the 5-minute Stochastic is out of the oversold / overbought zone, but moves almost horizontally, with no apparent slope, then treat the signal with caution. Although the Genesis Matrix strategy does not require this, it is better to ignore it or enter a smaller lot than usual.
The strategy works well on older timeframes. You can slightly change the settings of both stochastics, for example, the settings for 13, 5, and 3 are suitable for the time slot. If the Genesis Matrix indicator remains unchanged, the TS still gives good signals.
An example of work on the hourly chart.
If you work on hourly charts and older time intervals, the signals will not be formed as often. But it’s even more convenient, you’ll have to spend less time at the monitor screen.
The Genesis Matrix strategy is designed to work on small time intervals and allows you to earn well due to impulse price movements. The idea turned out to be so attractive that traders began to use it not only in the Forex market, but also to work with binary options (not only on 5-minute charts).
The only condition is to follow the rules of the strategy exactly. A lot of indicators are used, so if you start neglecting the rules, then the efficiency of the TS will decrease substantially.