AOTI – Simplest Levels Strategy and Additional Features

Let’s once again consider the AOTI Simplest Levels Strategy. Today we will explore the main pros and cons of this strategy, as well as its purpose.

About Simplest Levels Strategy

The simplest levels strategy appeared due to numerous requests from my friends, clients, and students. Its main task is simplicity. If you are really busy and you can’t trade during the business day, you can use the simple strategy of the levels. This strategy is not a Grail, unfortunately. However, like all other strategies. I’m just trying to make it as profitable as possible and will continue to improve the strategy for myself and all of you. The main advantage is the use of all additional indicator features, but I will talk about it a little later.

So, now about the strategy itself.

The strategy uses only the daily levels of the indicator, without additional features. The indicator calculates daily levels for specific currency pairs. Let me remind you that all other additional features (for example, Reversal Arrows, Support/Resistance Micro-Levels, Double Channel Trend Direction, Price Channel, MA Bands, Fibo Auto Calculation, Average Statistical Profit, Climax Bars Detection, etc.) work for any trading instruments.

The Basic Rules of the Simplest Levels Strategy

1). The indicator determines the daily levels one time per day. The indicator determines the daily levels for the whole day. New daily levels are available after 23:00 GMT, depending on your GMT Offset settings. How to determine the correct GMT Offset, I wrote here earlier.

2). We open a position when new daily levels appear.

The Opening Price – the opening price of the position

TP Level – the expected level of profit

SL Level – possible level of loss

3). Next, we wait when the price reaches the profit or loss levels. To simplify the process of trading, we don’t use the other features of the indicator.

4). If the price does not reach the profit or loss level, we close the position with any profit at the end of the day.

Pros and Cons of the Strategy

The main advantage of the strategy is that we do not need to sit in front of the monitor all day. Also, we do not need to do additional analysis and study the market for trading.

But this is also the negative side of the strategy. We do not use additional market analysis – we do not filter important news, we do not use any extra features offered by the indicator. If we use all features of the indicator, and its additional signals, we can get profit even within a day, regardless of the levels. All this gives us a lot more opportunities.

Of course, you can use this simple strategy, but I recommend that you better understand the indicator and its functionality to increase your potential profit. Use all the features of the indicator. It takes time to learn, but the result will reward you. You can also try to combine it with your trading style and create your own strategy. The simplest levels strategy is just an example of how we can trade without using additional market analysis. But this is not the right way. You can get much more profit and reduce possible losses if you use all the indicator features.

Additional Features Recommended for Use

The figure below shows a Buy signal. Look at the previous day. You can do this even on the current timeframe (M5), although it is better to evaluate the levels of H1 and higher time frames.

Red horizontal levels are important levels at the end of the previous day. Yellow rectangles mark multiple touches of a price at these levels. The indicator often builds micro-levels and reversal arrows at these points, which can confirm the correctness of the levels.

Point 1 – Theoretically, we can open a position here, as the price is at a strong enough support and we can buy. But at this point, it is early. It’s the Pacific session, and opens a position in such a quiet market is quite risky. It is better to wait for the European session opening so that the market is more volatile due to a large number of market players.

Point 2 – The price tries to rise but rests on the Resistance Micro-level. The unclear situation for opening a position. And the timing is still not so right.

Point 3 – Time is not optimal, but a good and strong support level confirmed by micro-levels. If I were before the terminal at this time, I would open the first position here.

Point 4 – The perfect level. Support for the previous day confirms the micro-level. Here I would open an additional position if I opened initially at Point 3. If I missed Point 3, the first position would open here. Further, we see that the price continues to “see” the levels of the previous day, bounces off them, but the daily level pulls it higher and higher.

This is an example of the analysis I’m using. Yes, it takes practice, just like any other case. After some time, our eyes begin to see a lot and do not need detailed graphical constructions.

Here are just a few examples of additional indicator signals that help me in trading:

That’s all for today.