A simple forex trend trading strategy with trend following indicator and the Pipboxer indicator.
This strategy works great in an extended uptrend or downtrend and is capable to give some really nice profits.
Let’s explore how it works…
Indicators: SuperTrend, PipBoxer_Indicator
Preferred time frame(s): H1, H4, D1, W1
Trading sessions: Any
Preferred Currency pairs: Any
Example: EUR/USD 1 Hour Chart
As shown in the EUR/USD chart above, the strategy provided us with two nice entry signals in the down trend.
Both were stopped out at 1.3568 quote for approximately + 90 pips profit each. Click the chart to enlarge.
For long positions:
- Currency pair trades above the green SuperTrend line (bullish)
- Pipboxer rises back above -100 from below (oversold)
Stop Loss: Place initial stop 2 pips below the green SuperTrend line.
Sell Exit Strategy 1 : Trail stop loss up just below the advancing SuperTrend line until you get stopped out from the buy trade.
Sell Exit Strategy 2 : Risk-to-reward 1:2 (i.e. risking 45 pips to make 90)
For short positions:
- Currency pair trades below the red SuperTrend line (bearish)
- Pipboxer falls back below +100 from above (overbought)
Stop Loss: Place initial stop 2 pips above the red SuperTrend line.
Sell Exit Strategy 1 : Trail stop loss down just above the declining SuperTrend line until you get stopped out from the sell trade.
Sell Exit Strategy 2 : Risk-to-reward 1:2 (i.e. risking 40 pips to make 80)