This momentum forex strategy uses alligator forex indicator to determine trend. Entry is based on bollinger bands breakout and always follows the trend. Strategy uses advanced trailing stop, that is being adjusted after each candle close.
Strategy is scalable and can be adjusted to trade many different currency pair on different timeframes.
Used forex indicators
Forex strategy rules
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Alligator lines aligned according to downtrend from slowest at the top to the fastest at the bottom.
Price candle closing below bottom BB band. We enter the trade short immediately on new candle open.
Stop loss is placed 5 pips above previous (signal) candle high.
Take profit is determined by trailing stop. We advance it with each closed candle high (always 15 pips above it). We only move it downwards.
Alligator lines aligned according to uptrend from slowest at the bottom. to the fastest at the top.
Price candle closing above upper BB band. We enter the trade short immediately on new candle open.
Stop loss is placed 5 pips below previous (signal) candle low.
Take profit is determined by trailing stop. We advance it with each closed candle low (always 5 pips below it). We only move it upwards.
It is possible to reenter the trade while price closes again outside of tunnel boundaries.
Notes: Strategy wasn't tested, however we provide free expert advisor trading according to its rules with lots of adjustable parameters. If you find some settings working particularly well please let us know.
We recommend you to use this forex strategy with one of our trusted forex brokers (STP/ECN with MT4 bridge).
To win you must trade with broker on your side.
Dislaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer.
TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.