Simple Winning Forex System

A simple winning forex system composed of two metatrader 4 indicators.

The first indicator is trend following in nature while the second indicator oscillates between two extreme values, overbought and oversold territory.

Chart Setup

Indicators: forex-mt4-trend-indicator, laquerre
Preferred time frame(s): 1 hour and above
Trading sessions: any
Preferred Currency pairs: any

Download

Download the Simple Winning Forex System.

Example: USD/JPY 4 Hour Chart

simple-winning-forex-system

As shown in the chart above, this system issued 3 winning signals and 2 small losses.

Trading Rules

Buy Scenario:

  • Trend indicator generates Blue Up arrow (trend turns bullish).
  • Laquerre indicator turns back above 0.15 from below.

==> Open buy at the open of the next candlestick.

Stop-Loss: Place a low risk stop below the most recent swing low.

Buy exit strategy 1: Close the trade when the Laquerre oscillator reaches 1.05 (overbought).
Buy exit strategy 2: Close the trade at risk-to-reward 1:2 or better.
Buy exit strategy 3: Hold the buy trade until an opposite trading signal (sell) is given.

Sell Scenario:

  • Trend indicator generates Red Down arrow (trend turns bearish).
  • Laquerre indicator turns back below 0.75 from above.

==> Open sell at the open of the next candlestick.

Stop-Loss: Place a low risk stop above the most recent swing high.

Sell exit strategy 1: Close the trade when the Laquerre oscillator reaches 0.00 (oversold).
Sell exit strategy 2: Close the trade at risk-to-reward 1:2 or better.
Sell exit strategy 3: Hold the sell trade until an opposite trading signal (buy) is given.

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