Payapa Strategy, the True Payapa Strategy by VMJ

with clarifications and annotations by Tebogo Motlhale

There is a LOTTTT of masquerading about the so-called Payapa strategy,

such as what you will see on several false YouTube videos as well as certain
websites, as per some of these “shady” links I have selected below . . .

 https://youtu.be/Fgk7AaOflc4
 https://youtu.be/YYihOlZxobQ
 https://youtu.be/HqcDb-FdTXM
 https://www.happyfxsignal.com/2018/12/modified-payapa-strategy-by-mr-happiness.html

the people in these videos and web pages above ^^ are showing and
masquerading some strategy that apparently uses Five EMAs plus Two
SMAs plus Seven RSI Levels and they are claiming it to be the Payapa
Strategy or the Advanced Modified Payapa Strategy !! I regret to
WARN all of you traders that the story of those Five EMAs plus Two SMAs
plus Seven RSI Levels is NOT the True Payapa strategy !!

I regret to inform you that ALL this above is FALSE information ! The
strategy I am going to describe for you below is the TRUE Payapa
Strategy by VMJ, so read with care . . .

First of all, in the Payapa Strategy, the people who use it, they analyze
during the weekends (Saturday and Sunday) and during the week they only
place trades.

Step 1
If today is 27th or 28th October 2018 and you want to predict the market
movement for the next 5 days, you need to calculate 10 days backwards
excluding weekends.
Step 2

Now open MetaTrader 4 and pick any pair to analyze.

Place the vertical line at 15th October 00:00 (the time when the market
started)

Step 3
Mark the all-time high and the all-time low for that period

in my case it is 0.8895 and 0.8752 here on EURGBP

Step 4

The all-time high is the Resistance level and the all-time low is the Support
Level

Now you need to determine the next immediate level (next lower) resistance
or support level where there is LOT of price activity. Activity means the place
where there is lot of rejections

The final product would look like this:

This four-line (two-band) picture creates our zones which are known as the
Payapa Sell Zone and Payapa Buy Zone
Step 5

Now we need to make a trendline that will touch the tips of the candle. For
an UpTrend, the trendline must touch the BOTTOM tips of the candles, while
for a DownTrend the trendline must touch the TOPS of the candles. This
trendline is known as the Payapa line. We draw a DOWNward Payapa line
from the Sell Zone going DOWN to the Buy Zone, and conversely we draw a
UPward Payapa line from the Buy Zone going UP to the Sell Zone

Step 6

Add Two moving averages, first one is SMA, second one is EMA

Insert > Indicators > Trend > Moving Averages

Settings :

Add Moving Average

Period = 15 ; Shift = 0
MA Method = Simple
Apply To = Close
Color = Choose Any, I suggest DarkOrchid
Line Thickness = Choose Size 2

Add Moving Average

Period = 5 ; Shift = 0
MA Method = Exponential
Apply To = Close
Color = Choose Any, I suggest White
Line Thickness = Choose Size 2
Step 7 – Execution !

This is where we take advantage of opportunities to trade. As long as the

candles/price are above or below the trend lines we do NOT place any
trades. Only enter trades when we get 3 confirmations

Confirmation #1
The candles/price is playing at one of the zones (either in Sell Zone or in Buy
Zone)

Confirmation #2
The Moving Averages must cross each other, the 5 EMA must cross the 15
SMA going Upwards (prepare for a BUY trade) or going Downwards (prepare
for a SELL trade) indicating change in direction

Confirmation #3
Look at the Payapa line. As soon as the Moving Averages and the
candles/price come and break out at the zone which is known as Payapa
zones place your trade

We can see here on these “secret” videos below from the VMJ Official
Facebook page

 https://www.facebook.com/1105232869544316/videos/331559830809576
 https://www.facebook.com/1105232869544316/videos/1852834344784161
 https://www.facebook.com/1105232869544316/videos/1738368022897461
 https://www.facebook.com/1105232869544316/videos/1735803076487289
 https://www.facebook.com/1105232869544316/videos/1722077141193216
 https://www.facebook.com/1105232869544316/videos/1652462508154680
 https://www.facebook.com/1105232869544316/videos/1665121290222135
 https://www.facebook.com/1105232869544316/videos/1693986217335642
 https://www.facebook.com/1105232869544316/videos/1700011500066447
 https://www.facebook.com/1105232869544316/videos/692585351098082
that the True Payapa Strategy indeed does NOT make use of Five EMAs
plus 2 SMAs plus Seven RSI levels at all ! It DOES however make use of
Two SMAs. We can note some clear footprints on the VMJ videos that
reveals to us that the people who use the Payapa Strategy they indeed
definitely draw/mark Buy Zones and Sell Zones on their charts, and we
can also note on some of the videos that the use of the Two SMAs is indeed
part of the official Payapa strategy. I have downloaded copies of these
videos for my own permanent records just in case the Payapa people end up
DELETING these videos after they realize that someone has exposed their
secret to the world !

I have also noted some “strange” things on the VMJ Official Facebook page
where people praise Payapa, but their charts are filthy with oscillators and
loaded with dozens of indicators !

 https://www.facebook.com/1105232869544316/videos/1049746748541678

. . . a little strange hey !

Also the creators of Payapa seem to be trading news spikes on some

occasions

 https://www.facebook.com/1105232869544316/videos/303842903782429
 https://www.facebook.com/1105232869544316/videos/1793713680696228

so there’s quite a mix of unrelated things they carry in their bag hey, and
the strange part is that they seem to MIX and collectively refer to ALL these
other things as “Payapa” too, including their News Spike trading
Final Review of the Rules again
Trade only when you get the 3 confirmations that are mentioned above.
Analyze only those pairs which have a clear trending direction. If there is No
clear trend don’t trade that pair. Don’t force drawing a trend line that does
NOT fit or touch the bottoms/tops of the candles !

End of the strategy, the True Payapa Strategy !!

Alright, my summary of this strategy

Well, clearly, from its instructions, this strategy is NOTHING more than just
a REVERSAL strategy based on taking REVERSAL trades when price breaks
out of a Resistance ZONE or Support ZONE in a REVERSAL move.

Furthermore, I have noted with dissatisfaction that some VERY important

things are NOT covered in the notes/instructions of this strategy, for
example . . .

The EXIT points are NOT covered, There are No instructions about WHEN
you should EXIT/close your trade ! So there are No recommendations given
about how far to set you Take Profit level !!

Secondly, there are also No instructions or recommendations about WHERE

or how far to set your Stop Loss !!

And thirdly, the purpose and the use of this so-called Payapa line (the
trendline) is NEVER explained at all ! I mean, what the fck do you do with
this Payapa line and what purpose does it serve to HAVE it there on the
chart in the first place since it is clearly NEVER used or referred to in the
execution of this strategy !! The execution instructions literally say that as
soon as the Moving Averages and the Candles/Price come and break out at
the zone (Sell Zone or Buy Zone), you place your trade, so what the fck is
that Payapa line used for ???

Ok, here is my additional advice with regards to the IMPORTANT MISSING

parts of this strategy . . .

Just use that fckin unexplained Payapa line (trendline) as your EXIT point,
set you Take Profit to be WHEN the price reaches/touches that fckin
unexplained Payapa line (trendline). Rather than talking about setting your
Take Profit to the touch of a trendline, which is a dangerous & paranoid
statement because MOST of you are now going to commit the BIG and
CARELESS mistake of speculating your own subjective DISTANCE and
STRAIGHT LINE (angle/slope) that you personally assume the price will
travel in order to hit that Payapa Line as your Take Profit point, but you will
be shocked and disappointed when the price first travels sideways for a
Loooooooong time before it goes towards the Payapa Line and by the time
you see the blunder in your assumptions, you would be in BIG losses ! So
rather than telling you to set your Take Profit to the touch of a trendline
(that Payapa Line), I think it is more accurate if I simply say to you that you
must EXIT/close your trade **when** the Candles/Price reaches that
bloody-unexplained Payapa line (trendline). And I hope you have given it
some thought and realized the reality that price can indeed reach/touch that
Payapa line without it (price) going DOWN or UP at all, the longer price
moves sideways, eventually the price will meet up (catch up) with that
trendline even when you have NOT yet made any profits whatsoever such
that price NEVER went sharply DOWN or even UPwards at all . . . if you think
about it . . . that is VERY possible ! That’s my opinion of HOW you should
use that bloody-unexplained Payapa line (trendline).

About the Stop Loss, I would highly-recommend that you set your stop loss
to -25 pips and your take profit to 32 pips or to be safer set stop loss to -48
pips and take profit to 55 pips, that’s it about the stop loss and take profit !

NB : Please people, do NOT keep on referring to this strategy as the

“Papaya” strategy, mind your spelling . . a Papaya is a fruit that you can eat
duh, so a Papaya CANNOT possibly be a Forex trading strategy, ok !! Adios
Amigos, I’m out !

Tebogo Motlhale