- October 23, 2019
- Posted by: Forex Wiki Team
- Category: Free Forex Indicators
So like myself many traders are reversal traders, always looking for tops and bottoms trying get in as early as possible, but we know that is not as easy as it seems and many times we land up with fake reversals or temporary pullbacks, chasing and adding to losing positions etc etc..
Now I'm sure most of us have heard the sayings that the "trend is your friend", "follow the trend" and "trade with the trend" etc so I gave this some serious thought and came up with an idea that I have been working on for the last 3 months. I know that there are probably 1000's of trend based strategies and perhaps mine is not unique, but it has been showing positive results with minimal time and effort. I wanted to create a strategy that is easy to follow and with as less chart and screen time needed (max 15 mins) kind of like a set and forget approach.
So here goes! The first thing you need is the Trend indicator LuXingMod AUD indicator, this is a free indicator I found here on FF, it simply shows all the pairs candle direction for each time frame if it is green/up or red/down, simple. I've attached it to this thread.
Now what is the entry criteria and when do we open and close an order?
Trend indicator LuXingMod :
2. When? On a Monday night after the first daily candle of the week is closed we will look for any pairs where is a confluence between the trend and all 4 time frames.
3. Any pairs that have the same confluence on all 4 time frames we will open an order in the same direction.
4. I normally wait for the first H4 candle to be fully formed so more or less 3 hrs after the Monday daily close.
5. The open time is not set in stone as I have opened the orders less than 3 hrs and after 3 hrs and still had success. (We can experiment on an optimal open time.)
5. When do we take profit? You take profit when you are happy with it or you can set your own TP in pips or %. I have set a 5% TP.
6. What about a stop loss? Well this is a personal preference, but I'm setting a max of 10% so if my account goes -10% of my account equity I'll close up for the week.
7. Can we set a trailing stop to trail profits? Sure that would be a good idea after reaching your TP.
8. This whole process should take you max 10-15 mins to look for valid pairs and place your orders.
9. Anything else? No that's it, simple right?This is a really easy strategy guys, not much in it, we are simply following the overall main trend of the market. This is a weekly basket style approach where we will hold orders for 2-4 days depending on the market. This strategy does not take into account fundamentals or HIN so if you want to be extra cautious you can exclude any valid pairs that might be affected by news for the week.
If you guys have some ideas on how to improve on the strategy I'm open to listening, however I will not encourage ideas that will completely veer from the original strategy as its really simple.
So I won't lie I'm a fan of EA's and think they are great tools if used correctly so I have asked a friend to make me an EA based on this strategy as its fairly simple, and once its complete I'll upload it here for everyone to test FREE. As always and the same as with my previous SDTR thread nothing is for sale and nothing will be for sale ever. I will most likely put an expiry date to keep it from being sold or commercialized. This thread and strategy has no commercial intent and never will, just putting it our there to be sure!
Now this goes without saying I will not tolerate any arguing or bickering among members as is the case that happens to many threads here and get derailed. Those that can't participate in a respectful friendly manner will be removed. We are all adults here so lets all behave like adults.
Trend indicator LuXingMod :
