What is the Puria method?

Now we will take a closer look at the well-known trading strategy called the Puria Method. This strategy is pretty straightforward and easy to use, even for beginners. Its essence lies in a combination of standard technical indicators.

Basis of the strategy

As mentioned above, the Puria method is an indicator strategy, and its purpose is to buy / sell currency pairs. The holding time of a deal rarely goes beyond the current day. This is a relatively low yield strategy, but it is one of the most reliable trading systems.

Opening a trade is accompanied by two moving averages with periods of 75 and 85 respectively, which are sometimes crossed by the so-called exponential moving average (EMA with a period of 5). Traders usually use 75 and 85 (MA) in red and 5 (EMA) in yellow on the chart. The position is opened exactly in the direction of the intersection; the MACD 15-26-1 is also an auxiliary tool.

This method is used on such timeframes as 30M and 1H, however some traders use 15M, but this is up to you. When applying the Puria method, not technical analysis tools are used, but rather various patterns of a continuous / reversal nature. This method is used on Forex pairs.

Setting up configuration

As previously stated, 3 MAs are used:

1. MA 1 - period 85, moving average method - linear-weighted; applied to Low; сolor - red;
2. MA 2 - period 75, moving average method - linear-weighted; applied to Low; сolor - red;
3. EMA 3 - period 5, exponential moving average method, applied to the closing zone; color - yellow.

MACD: fast EMA - 15, slow EMA - 26, MACD SMA - 1.

To save this set of indicators in MT4 and MT5, right-click on the installed indicators window and select Template / Upload Template / Puria.

Implementing the Puria Method

For those who finally decided to use this method, we have made recommendations for currency pairs, timeframes and profit size. We are going to pair them by timeframes, however, profit sizes (points) will differ.

The currency pairs for timeframe M30 are:

• GBP/USD: profit 20 points.
• CAD/JPY: 20 points.
• AUD/JPY: 15 points.
• USD/JPY:15 points.
• EUR/JPY: 15 points.
• EUR/USD: 15 points.
• USD/CHF: 10 points.
• AUD/USD: 10 points.

The currency pairs for timeframe H1 are:

• NZD/USD: profit 25 points.
• USD/CAD: 20 points
• EUR/CHF: H1, 15 points.
• CHF/JPY: H1, 15 points.
• EUR/GBP: H1, 10 points.

The stop loss criteria for all positions should be set to 15 points. However, you can be flexible and take no risks whatsoever. Here's what you can do: imply a Stop-to-Profit ratio of 1:1, which means your Stop Loss will equal your profit; when the market is more fragile than usual, you can add 10-15 points to your profit. Because this strategy doesn't call for following strict rules, you can experiment with various timeframes, different SLs, and profits. So maybe you will be the one to discover the most effective combination of settings.

For this strategy to be the most efficient start to buy when:

• The price chart rises above the slow MAs.
• The fast yellow EMA (5) crosses its red counterparts from below.
• The MACD histogram must be close above zero, but should come from below.
• Set Stop Loss and Take Profit as recommended and start trading.

When you see these changes start to sell:

• The price chart drops below the slow MAs.
• The fast yellow EMA (5) crosses its red counterparts from above.
• The MACD histogram must be close below zero, but should come from above.
• Set Stop Loss and Take Profit as recommended and start trading.

Conclusion

The Puria Method Strategy is a good example of an easy, yet profitable trading strategy. So even if you are a newbie, you can still be successful. Using this strategy, a trader starts making profit just by setting four indicators, which we listed in this article. However, it is important to always remember that the market doesn`t need a reason to be volatile, therefore profit cannot be assured at all times. Before trading for real, we recommend testing the Puria strategy on a demo account and making sure you understand how it will bring you profit with current market conditions and in the future.