Trend following FOREX strategy

This forex strategy is suitable for those of you who enjoy to watch their position grow in trend following position. It uses relatively conservative approach, using multiple moving averages in different  variations (also as alligator forex indicator) to pick the best positions within stable, major trends. It has exceptionally favorable risk reward ratio.

 

Costs of entering trade are reduced by using tight and logical stop loss that is just as tight as necessary for best entry. Relatively conservative trend following strategy suitable for busy, patient and conservative trader.

 

Used forex indicators

Alligator (130,80,50) Purpose: Alligator- combination of moving averages. In this strategy, they are used with slow calculation period with goal of identifying the main trend. Indicator should be drawn with thick line for better visualization as EMA will be also used.

EMA (exponential moving average) period 20 (red) and period 7 (green). Purpose: entry and exit timing of position in the direction of major trend.

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

 

Forex strategy rules

 

SELL:

 

Alligator will help us to identify downtrend. Alligator line are clearly separated and lined from top to bottom : Blue, red green. While it lasts we will take only short trades.

Entry signal: EMA 7 (green) crossing EMA (21) red downwards. We enter once the first candle after the crossing closes.

  • Stop loss is placed above the high of signal formation.

  • Take profit: EMA 7 crossing EMA 21 upwards.

 

BUY:

 

Alligator will help us to identify uptrend. Alligator line are clearly separated and lined from top to bottom : green, red, blue. While it lasts we will take only long trades.

Entry signal: EMA 7 (green) crossing EMA (21) red upwards. We enter once the first candle after the crossing closes.

  • Stop loss is placed below the low of signal formation.

  • Take profit: EMA 7 crossing EMA 21 downwards.

Notes: For best results avoid trading in ranging market.

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“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

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