Double Profit Levels System

The Double Profit Levels System is a professional-grade trading strategy offered for free by Vladimir Ribakov on the Forex Libra Code website. This system uses two indicators, Moving Averages and a filter-indicator, to help traders identify potentially profitable trades with greater accuracy. In this article, we will take a closer look at the Double Profit Levels System, discussing its features, benefits, and how it may be used to make trading decisions in the forex market.

What is the Double Profit Levels System?

The Double Profit Levels System is a professional trading system that utilizes two indicators, DPL1 and DPL2, to determine the market direction and identify potential trade entries. DPL1 consists of three major moving average lines (Blue – Fast, Red – Medium, and Yellow – Slow) and five minor moving average lines (2 dashed Blue lines and 3 dashed Yellow lines) to help determine whether the trend is bullish or bearish. However, to pinpoint trade entries, the DPL2 indicator is used in conjunction with DPL1. Overall, the Double Profit Levels System is a sophisticated trading strategy that requires careful analysis and interpretation of market signals to generate trade signals.

Double Profit Levels System Strategy

The first step in using this system is to pay close attention to the DPL1 indicator. If the slow yellow moving average is below or crosses below other moving averages, the DPL1 indicator is considered bullish. In this scenario, traders should only consider entering the market with buy trades. Conversely, if the slow yellow moving average is above or crosses above all other moving averages, the DPL1 indicator is considered bearish. In this case, traders should only consider entering the market with sell trades.

Once you have identified the market trend using the DPL1 indicator, it is important to look for further confirmation using the DPL2 indicator. If the DPL2 appears red, it indicates a bearish trend, and traders should only consider sell trades. Similarly, if the DPL2 appears green, it indicates a bullish trend, and traders should only consider buy trades. It is important to note that the appearance of a blue bullish entry arrow or a red bearish entry arrow on the price chart can signal a potential trade entry point. However, traders should ensure that all other entry criteria have been met before entering a trade.

It is also important to pay attention to the color of the DPL2 bars. When the bars appear grey, it indicates that the market is in a neutral territory. In this scenario, traders should avoid entering the market under any circumstances. It is important to remember that traders should exercise caution and wait for confirmation before entering or exiting trades. Additionally, it is crucial to manage risk by using appropriate stop loss orders and money management strategies.


Buy Signal

Double Profit Levels System Buy Signal
Double Profit Levels System Buy Signal
  • Wait for the DPL1 indicator to turn bullish, indicating that the slow yellow moving average is below or crosses below other moving averages.
  • Look for a blue bullish entry arrow on the price chart, which indicates a potential entry point.
  • Ensure that all other entry criteria have been met before entering a buy trade.
  • Set a stop loss for your position a few pips below the entry candle or according to your money management strategy.

Sell Signal

Double Profit Levels System Sell Signal
Double Profit Levels System Sell Signal
  • Wait for the DPL1 indicator to turn bearish, indicating that the slow yellow moving average is above or crosses above all other moving averages.
  • Look for a red bearish entry arrow on the price chart, which indicates a potential entry point.
  • Ensure that all other entry criteria have been met before entering a sell trade.
  • Set a stop loss for your position a few pips above the entry candle or according to your money management strategy.

Double Profit Levels System Pros & Cons

Pros

  • The Double Profit Levels system is relatively easy to use, even for novice traders.
  • The system helps traders identify the current market trend, which is important for making informed trading decisions.

Cons

  • Like any trading system, the Double Profit Levels system can generate false signals, leading to losses for traders.
  • The system relies on lagging indicators, which means that buy and sell signals may come after a trend has already started, reducing potential profits.

Conclusion

Overall, the Double Profit Levels system can be an effective trading strategy when used correctly and in conjunction with sound trading principles. It is important to wait for confirmation and ensure that all other entry criteria have been met before entering a trade. Additionally, managing risk by using appropriate stop loss orders and money management strategies is crucial.

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