Solid trend following strategy

A forex system using three different tools to identify and confirm the trend. Each with its own weaknesses and strengths. Together they create accurate entry model. The signal therefore remain simple and therefore fundamentally robust so it can be applied on any pair and timeframe. Signal - a simple candle clearly closing in the direction of trend.

  Get MT4 Expert Advisor trading this Forex strategy ↴ 

Backtest and optimize for any currency pair. Trade multiple instruments simultaneously, day and night.

Trade automatically, without errors and emotions. Save your time and energy. 

Our main goal here is to identify trend. We do so by using three independent indicators (EMA – main trend, SAR – price in a trend, no correction, and CCI- avoid trading range, momentum). Each has its own functions and works well in filtering out unsuitable entry.

 

To keep the trading frequent enough a simple candle signal is used. All position are liquidated using advanced trailing stop based on SAR indicator. The system was tested for profitability on historical data since 2003 with profitable results. Strategy is provided together with free expert advisor trading it.

 

Used tools and indicators

Exponential moving averages (250,500) Standard method used. Position of fast EMA compared to slow EMA will establish the trend. We try to focus more on long term trend present in the market.

 

Commodity channel index (20) CCI is used to find us market moving rapidly in the direction of trend – high momentum. This position are most likely to move into profit fast. This suits as well as we want our trail stop to protect profits soon after the entry.

 

SAR parabolic (step 0,03, max 0,05): Trend filter and trail stop lead.

 

MAX open trades (1 in test): Number of opened trades allowed per side at the same time.

 

Trailing stop is adjusted with each closed SAR dot. Extra distance (90 pips in test) can be applied to cover the volatility.

 

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

EMA fast trending below EMA slow. Downtrend

 

CCI falling below -100 line (sell below line).  Price closing below SAR dot. Downtrend is fully confirmed and unanimously identified. We will be looking for short entry only.

 

Signal: Bearish candle with body range between 40-150 pips. We enter the trade short on its close. Trailing stop is placed according to last closed SAR dot + extra distance 90 pips above it. Position is only closed at SAR dot.

 

BUY

EMA fast trending above EMA slow. Uptrend

 

CCI rising above 100 line (buy below line).  Price closing above SAR dot. Uptrend is fully confirmed and unanimously identified. We will be looking for long entry only.

 

Signal: Bullish candle with body range between 40-150 pips. We enter the trade long on its close. Trailing stop is placed according to last closed SAR dot - extra distance 90 pips below it. Position is only closed at SAR dot.

Get MT4 expert advisor trading this forex strategy

For best results, 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.

 

Disclaimer:  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.

 

Please reload

ABOUT US

THEFOREXKINGS

“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. ” 

—  Marian, Proprietor of TheForexkings.com