Smart Forex Trend Trading Strategy

A very nice forex trend trading strategy composed of only 2 trend following indicators.

This strategy can be used on the most popular time frames including the hourly chart.

Chart Setup

Indicators: HMA_v2, FXprime_V2Final-JE
Preferred time frame(s): M5, M15, M30, H1, H4, Daily, Weekly
Trading sessions: London and US
Preferred Currency pairs: Majors + GBP/JPY and EUR/JPY

Download

Download the Smart Forex Trend Trading Strategy.

Example: GBP/JPY 15 Min Chart

smart-forex-trend-trading-strategy

In this example, 3 entry signals resulted in two 2 wins and 1 small loss. Click the chart to enlarge.

Trading Rules

For long positions:

  • HMA indicator draws lightblue dots (up trend)
  • FXprime_V2Final-JE trend bars indicator green color (from red to green)

==> Initiate Buy trade.
Stop Loss: 5 pip below the most recent swing low (short-term support).
Exit Strategy : Exit the trade for risk/reward ratio 2:1 or better (i.e. risking 60 pips to earn 120).

For short positions:

  • HMA indicator draws red dots (down trend)
  • FXprime_V2Final-JE trend bars indicator red color (from green to red)

==> Initiate Sell trade.
Stop Loss: 5 pip above the most recent swing high (short-term resistance).
Exit Strategy : Exit the trade for risk/reward ratio 2:1 or better (i.e. risking 45 pips to earn 90).

Share Now!