The Rubicon indicator is one of the new custom indicators for traders, which has become quite popular due to good results and the construction of an almost complete trading strategy. Especially for novice traders, Rubicon Indicator has become an indispensable assistant in currency trading on the Forex market.

Title Rubicon was taken from the expression - "to cross the Rubicon", it's the same as making an important irreversible decision, risking the last one to achieve the goal. In fact, Julius Caesar crossed the river Rubicon on the Apennine Peninsula during his next military campaign, which would have failed if the great ruler had not decided to cross the Rubicon.

Visually, the Rubicon indicator gives trading signals to a novice trader using sound alerts from arrows, which is quite convenient. Also, Rubicon Indicator is equipped with additional filters and information panels, on the basis of which the trader receives the necessary information.

See Fig. 1. in the application

As you can see from the example, the Rubicon indicator draws an exponential moving average with a period of 116 (red color of the line) and fast moving averages (blue and cyan colors of the lines) on the chart. The green lines on the chart show the zones for placing pending orders, and the numbers show price levels where best place orders Stop-loss and Take-Profit.

Basic indicator settings Rubicon:

See Fig. 2. in the app

· Target Label Size - location of the price label for take profit.

· Stop Label Size - the location of the price label for the stop loss.

· Arrow Size - arrow size settings.

· Audio Alert - the ability to activate the sound signal.

Using the Rubicon indicator, you can trade on any currency pairs, around the clock, and on any timeframe.

Rules for trading with the indicator Rubicons are simple:

1. We are looking for an entry to buy a currency pair when fast moving averages cross EMA 116 from the bottom up.

2. We are looking for an entry to sell the currency pair if fast moving averages cross EMA 116 from top to bottom.

For lazy traders, the Rubicon indicator even draws a green line for placing pending orders ( BUY STOP and SELL STOP ) when the main signal to enter the position appears. Besides, Rubicon Indicator draws price levels of orders Stop-loss and Take-Profit after a trading position is opened.

See Fig. 3. in the application

It turns out that the Rubicon indicator thinks for the trader, who can only follow his signals and run to cash out the earned money at an ATM.

However, it is important to consider that the Rubicon indicator places a Take Profit order at the distance of the Stop Loss order value, which makes any trading strategy vulnerable, with a minimum positive mathematical expectation.

As you know, the optimal ratio of Take Profit and Stop Loss orders is 3:1. Therefore, we strongly recommend that you do not take into account the basic recommendations of the Rubicon indicator on the size of the Take Profit order, but set it yourself, based on: the size of the stop multiplied by 3.

Also, you need to understand that a new trend begins at the first intersection of fast moving averages with slow moving averages, after exiting the consolidation zone. Further, new moving average crossovers may provide little upside potential. Therefore, experienced traders who successfully use the Rubicon indicator advise to reduce the stop-to-take ratio by 1:1 for further entries or adding to the trend, which is, by default, in the indicator settings.

Benefits of the Rubicon indicator:

· Self-sufficiency and convenience of the received trading signals to enter the market;

· Good profitability when trading on higher timeframes: H1, H4, D1;

· Universality of use on any financial instruments.

Disadvantages of the Rubicon indicator:

· A lot of false entry signals when flat. This problem can be solved either by moving the position to breakeven, or by using additional indicators that would cut off signals from the flat.

· Entry with pending orders is also not always productive, because on a breakdown, a trader loses about 10-20% of the price movement potential as opposed to entry on a rollback in the market.

· Working with only moving average crossovers has a negative mathematical expectation of a series of successful trades, which is very difficult to correct.

Thus, we got acquainted with the principles of the indicator Rubicon . Also, we have considered the main advantages and disadvantages of the trading signals of this indicator. Perhaps one of you will Rubicon indicator to your development.

Rubicon indicator for forex is a universal algorithm that automatically builds technical markup and marks points that are optimal for concluding speculative transactions.

So, within the framework of the proposed system, the Forex Rubicon is understood as the situation when it crosses the slow MA. Obviously, the author came up with the name for his development based on the stable expression “cross the Rubicon”, which is usually used to characterize a risky decision.

The figure above shows the markup of the mentioned tool. As you can see, three moving averages are involved in the formation of signals, in particular, the red MA is calculated for 116 candles using an exponential formula. According to the author, given line and is a Forex Rubicon, the breakdown of which opens the way to new goals.

Download Rubicon indicator You can absolutely free:

Designed to identify specific signals to buy and sell an asset, namely, a deal to open a long position is concluded subject to the following conditions:

• The red line is directed upwards - this means that the main trend is up;
• There was a breakdown of the red line of the blue MA from the bottom up. I draw your attention to the fact that in this case it is the single precedent that matters, i.e. in the future, the auxiliary MA may again fall below the EMA (116), but if the main "Machka" is still directed upwards, the indicator will continue to generate buy signals;
• After the blue line crossed the blue one from the bottom up, an up arrow appeared.

Thus, Forex Rubicon takes into account the situation on three timeframes at once - on the oldest of them it evaluates the general trend, then looks for a signal confirming the strength of buyers, and only after that it catches short-term bullish impulses.

As for profit targets and loss protection, everything is simple here - by default, the take profit is set to the yellow mark, and slightly below the red price mark.

As you might guess, selling operations are the exact opposite of buying, so the trader must wait for the following signals:

• The red line is pointing down;
• There was a breakdown of the red line of the blue MA from top to bottom;
• The blue line crossed the blue moving average from top to bottom (a downward arrow appeared).

Take profit and stop loss for a short position are set according to exactly the same principle as when buying.

Special attention should be paid to horizontal green levels - this is how Forex Rubicon indicates quotes that are best suited, i.e. the trader has a choice - immediately after the appearance of the yellow arrow, open a deal on the market or set a “postponement”. What strategy to follow, everyone decides for himself.

Pros and cons of the Rubicon indicator

I have already noted above that Rubicon Forex is a universal algorithm - this is its main advantage, since many strategies that use moving averages require more precise optimization for each specific timeframe.

In part, this is why professionals practically do not use the considered algorithm, but for beginners who have just begun to master moving averages, Rubicon will be a good simulator.

Pay attention to these two indicators:

And the last thing I didn't like about the indicator reviewed today is the inadequate ratio between take profits and stop losses on large timeframes.

The chart above shows one such example. Obviously, it is impossible to make money on such signals, but if you always set a “take” equivalent to two/three “stops” (recommended by the Forex Rubicon), then the result at a distance can significantly improve.

Summary - the Forex Rubicon indicator is suitable for training on demo accounts, but in the process of real trading, its signals will have to be optimized and combined with additional filters.

Among the indicators that best show the trend and have long served traders in various markets, moving averages stand out in particular. According to some studies, it was this simple tool alone or in the form of derivative technical systems that brought the most money to everyone who works on the stock, commodity or currency exchange. Of particular value in terms of analysis is the combination of moving averages, since the combination of fast and slow moving averages reveals the situation on the market better than any complex formations. Therefore, we recommend paying attention to the Rubicon indicator, which is a simple, reliable and versatile analysis tool that perfectly finds trends in the market.

Because today is enough a large number of traders confirmed the effectiveness of Rubicon, it is worth doing it short review focusing on strengths and weak sides, as well as on the specifics of application in practice. At the same time, we will make a small test to check how effective trading will be using this indicator.

General description of the Rubicon and installation

The main difficulty in finding trends is to avoid entries when the market goes sideways. With a sluggish fluctuation of assets during the development of a sideways movement, the most false signals are made according to trend strategies. To offset this drawback, the authors of the Rubicon indicator included a combination of 3 moving averages in their analysis tool.

It is worth noting that in itself this approach is not new, since the Alligator, MACD and many other trend indicators have already tried to implement a combination of moving averages. Nevertheless, Rubicon offers a fairly efficient analysis algorithm, which can perform quite well in the market if you choose the right trading asset and time period.

In addition, the Rubicon indicator is not included in the standard terminal tools for mt4 traders, so its archive must first be DOWNLOADED to your computer and then installed.

This is done very simply.

1. To begin with, in an open terminal, go to "File" and find the item "Open data directory" there.
2. By clicking on the item indicated above, a new window will open, in which you should find and open the "MQL4" directory.
3. Then they go into it and copy the Indicators folder here, which is inside the archive, which can be downloaded from the link above.

After completing these steps, it is better to restart the terminal and find the Rubicon indicator on the left in the window called "Navigator", as in the screenshot below.

Then it remains just to drag the indicator found in the list to the chart of the selected asset. However, before proceeding directly to making money, you still need to say a few words about the settings. Access to the options opens at the moment when the trader drags the Rubicon directly onto the chart.

Settings available to change

When adding an indicator, a window appears in which to access the options you need to go to the "Input parameters" tab.

There are very few Rubicon settings here, so we will list and describe each of them.

1. Target_Label_Size - this parameter controls the amount of distance to set targets, displaying it in points.
2. Stop_Label_Size - a parameter similar to the one described above, but only for stop loss levels.
3. Arrow Size - this setting allows you to change the size of the arrows in Rubicon, so each trader is free to choose the values ​​that suit him here if he is not satisfied with the default parameters.
4. Audio Alert - enable/disable audio alerts.

Every trader who is familiar with the work of moving averages will immediately notice one feature of the Rubicon Forex indicator in question. There are no settings here to independently change the period value for displaying individual movings. Therefore, the trader actually does not have the opportunity to adjust the work himself to the selected time period or trading instrument.

Indeed, the author, through theoretical and practical research, has created an indicator that is ideal for working on 15-minute and 30-minute charts. That is, the use of Rubicon is carried out exclusively within the day, and the choice of periods for moving averages is best suited for determining the trend on most volatile assets.

An example of a trade using the Rubicon indicator is as follows. Please note that in addition to the entry point, the stop loss and take profit levels are immediately displayed.

Now, smoothly approaching the description of the entry conditions, it is worth considering what opportunities the author laid down and how, in theory, his delights differ from those already existing on the market.

How the trend indicator works

First of all, it is important to pay attention to the red moving average in the screenshot above. Color settings, by the way, can be changed in the options when you set the indicator on the corresponding tab. Based on its smooth slope, many have already guessed that it is the slowest of the 3 Rubicons built into the indicator. This is indeed the case, and the period for this moving average is 116.

The signals to work come from the other two moving averages (in our example below, the colors are aqua and blue), but they can only be used if the direction of the deal coincides with the price position relative to the slowest moving average.

Signals to open a deal to buy

First, consider the situation when you can buy.

1. The first thing a trader looks at is where the prices are relative to the red moving average or the slowest one if another color scheme is chosen. To be able to conclude a purchase, candles must be located higher than the red line.
2. The next step is to wait for the entry point to appear. It is formed at the moment when the aqua moving average crosses the slower blue moving average from bottom to top.
3. As soon as this happens, the Rubicon indicator will give a signal and set the stop loss and take profit points, but you cannot enter the market.
4. After the formation of conditions, the trader places a pending limit order of the Buy Stop type at the green line level that has appeared. Then it remains only to wait whether the order will work or not.

This is how it looks in the terminal with a light color scheme. As you can see, the display is unreadable, so the default settings should be changed.

Or, as an option, trade on a dark background, for which the Rubicon indicator itself was developed. This is what the display looks like with a black background in mt4.

Signals to open a deal to sell

To open short positions, you need to wait for reverse signals, that is:

1. Prices must be below the slowest red moving average.
2. The aqua color line must cross the blue one from top to bottom.
3. As soon as this happens and a green entry line appears, you can set a pending Sell Stop limit.

Testing the Rubicon indicator

Having become interested in the Rubicon indicator, it was decided to test it, choosing the EUR/USD currency pair and the 30-minute timeframe for this. A special manual tester was used to check, and the experiment was carried out for one calendar month. Of course, the period is short, but it already allows us to draw certain conclusions.

The results of the work can be seen in the screenshot below. They may seem disappointing to some, but remember that EUR/USD has been inside a wide-range flat for more than a year, so trend strategies generally do not work well here. In addition, with a 30-minute timeframe.

For those who are interested, you can take a look at other parameters that are fixed in the screenshot below. There is the value of the initial deposit, loss, number of transactions, and so on. note that trading operations The average was 1 per day.

How to improve trend trading results

In the process of testing the Rubicon indicator, it was found that it requires careful selection of instruments and EUR/USD is the worst choice. But here are the pairs with the yen, gold, oil, Mexican pesos, Russian ruble and other assets that often move within the trend show a completely different result.

In addition, according to statistics, more profits can be saved if you do not use built-in stop losses when accompanying a position. A much better result is observed when the stop is pulled under the latest extremes - under the lows on an uptrend, and beyond the highs on a downtrend. Another good option is a trailing stop, but only if it takes into account the volatility of a particular trading instrument.

The results of the consideration of the Rubicon

Concluding the review of the latest version of the Rubicon indicator, we can summarize by saying that this is far from the Grail, but in capable hands and with proper discipline, everyone can easily use a simple trend-following strategy, and this is the safest and most profitable approach! The main thing is not to forget to check it yourself at least on the history for the selected asset.

Developer site: _http://rubiconindicator.com/
Currency pairs: All
Timeframe: from M5 to daytime (D1)
Strategy: trending using MA and directly the indicator Rubicon

Chart example:

Description of the strategy:

First, let's look at the position MA116(red line) and prices. If the price above red lines, we only consider purchases, If below- naturally sales.
- After price crossed red line we expect the intersection of the other two - blue And blue.
- As soon as they intersect, a horizontal line appears green Line and an arrow. This is a signal to placing a pending order.
- We exhibit adjournment and wait for the price to cross it. After this happens, "tablets" appear with Take Profit And Stop Loss. We modify the order by placing the specified numbers. For a more profitable strategy, it is recommended to put Take Profit in 3 times more Stop Loss, for example Stop equal to 20 points, take take not as indicated on the chart, but 20*3=60 points.

Rubicon settings:

In principle, you can’t change anything here for trading, these are purely informative settings:

TargetLabelSize– increase/decrease the size of the price label for take profit.
StopLabelSize– increase/decrease the size of the stop loss price label.
ArrowSize– increase/decrease the size of the arrow.
Audio Alert– enable/disable notification with sound.

For many novice traders, there are two common features- a complete lack of knowledge and excessive enthusiasm. Unfortunately, the latter factor often outweighs a sober assessment of reality and leads the novice into vicious circle endless testing and adjustment of indicator parameters.

Therefore, today will be considered good Rubicon indicator, which at the same time will allow you to "let off steam" without unnecessary risk and at the same time teach basic principles trade.

In part, that is why the authors chose such an original name, because the Rubicon is a famous river in Italy, which played a key role in the fate of Julius Caesar. On the other hand, the very principle of operation of this indicator system is fully consistent with the catchphrase "cross the Rubicon", for a better understanding of which we will go directly to the description of the Rubicon indicator.

So, on the chart, this algorithm looks like this:

As you might have guessed, buy and sell signals are identified using moving averages, and it is impossible to change their parameters in the settings. This fact completely excludes the possibility of various rash experiments, because there is nothing to break the code - nothing to fix, which is very important for a beginner. There are three lines in total:

• red - shows a trend on a higher timeframe;
• blue and light blue are signal lines, the intersection of which with red indicates the imminent appearance of a signal (the above-mentioned overcoming of the Rubicon), and the intersection of fast moving averages confirms the final recommendation.

Accordingly, if the fast line crossed the main one from the bottom up, this is a buy signal, otherwise it is a sell signal. But not everything is as primitive as it might seem. The fact is that the Rubicon indicator does not give a signal immediately, but marks the recommended levels for pending orders of the buy-stop and sell-stop types, which are green by default. A classic example of such a situation is shown in the figure below:

Thus, after the appearance of a signal, it is enough to set a "postponement", and the rest of the time can be devoted to your personal affairs, learning to trade or searching for signals on other currency pairs. Speaking of other instruments, the description of the Rubicon indicator is suitable for any currency, metal, and even cfd contracts.

In addition, no restrictions are imposed on the timeframe and type of quotes, which makes the considered algorithm completely universal and, most importantly, accessible, since you can find and download the Rubicon indicator for free.

Nevertheless, own experience showed that it is best to work on the M15 chart with four-digit quotes, since on lower timeframes, losses from the spread will become a hindrance, and on larger timeframes, signals appear and are worked out for profit much less frequently.

Now a logical question arises - where exactly to set the take profit and stop loss? On the charts above, you could see yellow and orange rectangular labels with prices - this is stops and profits recommended by the Rubicon indicator:

1. the first is a cherished goal,
2. the second is the stop loss value.

If everything is logical with the latter, then profit limits often turn out to be not the most optimal (less potential risk per trade), so we recommend that you do one of the following:

• The take profit value is defined as a stop in points * K, where K is a coefficient from 2 to 4;
• Do not set a take at all, but as soon as the price touches the yellow mark, we move the stop loss to breakeven, and accompany the order using trailing.

If you follow all the rules listed and adhere to conservative money management, then it will be almost impossible to drain the deposit. Of course, Rubicon also has one drawback - it is the complete destruction of the old markup on history after the return signal. For this reason, its effectiveness can only be assessed with the help of special tester programs that simulate the price movement.

But in any case, the best practice is to trade online, so you can collect statistics on your own trades, and overcoming real Rubicons will have to wait ( download indicator below).