The Le Confort strategy: what to consider
The primary objective of any trader is to maximize profits while minimizing risks. Experienced market participants usually achieve this by developing their effective approaches through trial and error. However, there are strategies that allow you to make profitable trades without in-depth professional knowledge. One such strategy is Le Confort. This approach uses two indicators. The key to successfully applying the strategy is correctly setting the parameters and selecting a clear time interval for options. This enables traders to determine when to open and close a deal accurately.
Setting the parameters
The strategy is quite simple to use. However, in order to achieve the desired result, its implementation requires compliance with a number of conditions. Among them are:
– using the M5 working chart;
– setting the levels +300/-300 for the CCI commodity channel index indicator;
– a period of 40 is also used for the indicated index;
– using the Bollinger Bands indicator, the settings are selected by default;
– the trade duration is three candles.
It is essential to recognize that any price movement in the market will eventually shift direction. This applies to both stable trends and short-term corrections. The Le Confort strategy is based on analyzing such changes. Its tools help determine the moment when most participants begin to take advantage of the correction in a timely manner. This usually occurs when interest in the current trend weakens.
How to use the strategy
The key moment occurs when the CCI (Commodity Channel Index) falls below -300. This may indicate an entry point, or in other words, the market bottom.
However, one signal is not enough — confirmation is needed. The Bollinger Bands indicator provides this confirmation. If the price breaks through the lower band, this serves as additional confirmation of a possible market reversal.
The Le Confort strategy works not only when the CCI indicator falls below -300, but also in the opposite situation. If the CCI rises above +300, it may indicate the formation of a local maximum. A breakout of the upper Bollinger band confirms this and signals a likely downward reversal. In this case, the trader can open a trade anticipating a price decline.
What determines the accuracy of a strategy
It is important to calculate the option time correctly. To do so, evaluate the trading chart. If the time frame is five minutes, the period should be within three candles, or 15 minutes. For other time frames, the term is calculated in the same way.
The Le Confort strategy shows good accuracy provided that the indicator signals confirm and reinforce each other. This minimizes the likelihood of errors and reduces trading risks.
Overall, the outlined strategy is easy to use and can be effective for beginners in the market.
