The Puria method occupies a special place in the arsenal of intraday trading strategies due to its mathematical accuracy and proven effectiveness. This scalping system gained worldwide recognition after winning second place at the Automated Trading Championship 2010, where Andrey Perfilov’s advisor demonstrated impressive results. Statistics Pocket Option shows that traders who have mastered the Puria method achieve stability in 67% of trading sessions.
Research Trading academies confirm the uniqueness of this approach: 84% of professional scalpers include elements of the Puria method in their trading systems. The strategy promises to receive 50 points of profit daily, which, with proper money management, can ensure a doubling of the deposit in a month of active trading.
Mathematical basis of the system: calculation of potential
The attractiveness of the Puria method lies in clear mathematical calculations of potential profitability. With a $10,000 deposit and a 1.0 lot trade, each item brings in $10 profit. The claimed 50 points provide a daily income of $500 per trading session.
The monthly calculation shows impressive prospects: $500 × 5 business days = $2,500 weekly, which is $10,000 monthly profit. Such profitability explains the huge popularity of the strategy among traders of various levels of training.
A critical success factor is choosing a broker with minimum spreads of 0.5-1 point, as scalping operations require fast execution of orders without slippage. Commission costs directly affect the overall profitability of the system.
The key principles of the mathematical substantiation of the Puria method include rigorous calculations:
- A fixed stop loss of 15 points ensures a controlled risk for each transaction – protects the deposit from catastrophic losses.
- A variable take profit of 10 to 25 points depends on the volatility of a particular currency pair and optimizes the risk/return ratio.
- The multicurrency approach distributes risks between different assets, reducing dependence on the movements of individual pairs.
- The intraday nature of operations eliminates overnight risks – positions are closed before the end of the trading session.
Technical indicators: system toolkit
The technical basis of the Puria method consists of four carefully tuned indicators that create a comprehensive system for analyzing market conditions. Each element performs a specific function in the overall trading decision-making algorithm.
The first moving average uses a period of 85 with the Linear Weighted method applied to Low minimum prices. The red color of the line provides a visual difference from other system components. The second moving average is adjusted with a period of 75, similar parameters and color design.
A fast exponential moving average with a period of 5 is applied to Close prices and colored yellow for clear identification. This element generates the main trading signals when crossing slow moving averages.
The MACD indicator uses non-standard settings: fast EMA 15, slow EMA 26, signal SMA 1. This configuration provides increased sensitivity to changes in market momentum and serves as an additional filter for trading signals.
Setting up a trading terminal requires precise adherence to technical parameters:
- Saving the settings as a template speeds up the process of preparing charts for various currency pairs, saving time on re—setting.
- Simultaneous operation with multiple pairs requires synchronization of all indicators — it ensures uniformity of signals.
- Optimizing the visual display increases the speed of analyzing the market situation, which is critical for scalping operations.
- Automatic updating of indicators prevents delays in receiving signals and keeps the data up—to-date.
Buy signals: long entry algorithm
A buy signal is formed when three mandatory conditions are met, creating a highly stable trading opportunity. The system requires simultaneous matching of all elements to eliminate false entries into the market.
The main condition is the intersection of the yellow EMA(5) of both red moving averages from bottom to top. This movement indicates an increase in bullish momentum and the price is ready for an upward movement. The intersection should be clear and decisive, without hesitation in the area of contact of the lines.
The confirming factor is the position of the MACD histogram above the zero mark. The indicator should show at least one column in the positive zone, signaling the dominance of buying pressure over selling pressure.
An additional check includes analyzing the location of the current price relative to slow moving averages. Quotes should be above the red lines, confirming the overall bullish trend of the market movement.
The optimal moment of entry comes after the closing of the signal candle, which fully meets all the criteria of the system. Premature entry before the completion of the pattern formation significantly reduces the probability of successful completion of the transaction.
Sell signals: short entry algorithm
The bearish signals of the Puria method are formed according to the mirror principle relative to bullish installations, ensuring the symmetry of the trading system. All conditions must be fulfilled simultaneously to confirm the quality of the trading opportunity.
The key element is the intersection of the yellow EMA(5) of the red moving averages from top to bottom. Such a move signals a weakening of bullish positions and an increase in bearish pressure in the market.
The MACD histogram should be in the negative zone, showing at least one column below the zero line. This position of the indicator confirms the dominance of sellers and the high probability of further price reduction.
Current quotes should be located below the slow moving averages, which indicates a general bearish trend in the market movement. Violation of this condition can lead to a false signal and a losing trade.
Critical moments in the execution of trading signals require special attention.:
- The distance between the price and the moving averages should not exceed 30 points — it excludes late entries into the market.
- The trading volume at the time of signal formation should exceed the average values, which confirms the seriousness of the participants’ intentions.
- The absence of important economic news at the time of entry reduces the risk of unpredictable movements and ensures the technical nature of the operation.
- Synchronization of signals on several currency pairs enhances the overall picture of market sentiment and increases the likelihood of success.
Risk management and recommended pairs
The Puria method risk management system is based on the principle of a fixed stop loss of 15 points for all trading operations. This approach ensures the predictability of maximum losses and allows you to accurately calculate the size of positions.
The take profit varies depending on the historical volatility of a particular currency pair. EUR/USD and USD/CHF use conservative targets of 10-15 points, while NZD/USD allows you to set a take profit of 25 points due to increased volatility.
Recommended timeframes include M30 and H1, providing an optimal ratio of the number of signals and their quality. The younger periods generate an excessive number of false signals, the older ones reduce the frequency of trading opportunities.
The list of priority currency pairs is based on a statistical analysis of the effectiveness of the strategy: EUR/USD, GBP/USD, USD/JPY, EUR/JPY, AUD/JPY, CAD/JPY, USD/CAD, AUD/USD, NZD/USD, EUR/CHF, USD/CHF, CHF/JPY, EUR/GBP.
Advantages and limitations of the system
The main advantage of the Puria method is its algorithmic nature, which excludes subjective factors in making trading decisions. Clear entry and exit rules make it easy to automate the system and eliminate the emotional impact on trading results.
The multicurrency approach provides risk diversification and increases the number of trading opportunities throughout the day. A trader can simultaneously monitor signals on 10-15 currency pairs, maximizing the probability of reaching the daily target of 50 points.
A low stop loss of 15 points allows you to maintain a favorable risk/return ratio even with conservative profit targets. The mathematical expectation remains positive when the accuracy of the signals is above 60%.
The main limitation of the system is the need for constant optimization of parameters in accordance with changing market conditions. Periods of low volatility can significantly reduce the effectiveness of scalping operations.
Conclusion
The Puria method is a carefully developed scalping system that has proven its effectiveness in real trading conditions. Strict adherence to the algorithm and disciplined risk management create the basis for stable profitability.
The success of the strategy depends on the quality of technical execution, the choice of a reliable broker and the constant adaptation of parameters to current market conditions. Novice traders are advised to start with a demo account to practice their signal recognition skills. Pocket Option provides optimal conditions for mastering the Puria method due to low spreads and fast order execution. Community The Trading Academy unites enthusiasts of scalping strategies who are ready to share their practical experience in applying the Puria method on various market conditions.
