Hi all, I want to show you my favorite trend following trading strategy which gives me an easy 200-400 pips/month.
It consists of 2 custom Metatrader 4 indicators and the 100 simple moving average.
Let’s begin with the basic settings:
Indicators: VOLCANOWMA, Trend Strength, 100 Simple Moving Average
Time frame(s): 1 hour and above (I always use the 4 hour chart)
Trading sessions: All
Currency pairs: Majors (EUR/USD, USD/JPY, GBP/USD, USD/CHF, NZD/USD, USD/CAD,…)
EUR/USD 4 Hour Chart Buy Trade Example
- Criteria #1: VOLCANOWMA Up Arrow (Green)
- Criteria #2: Price must be trading above the 100 simple moving average
- Criteria #3: Trend Strength (below the main chart) 70% green or more
Protective Stop-Loss: Set stop 5 pips below the most recent swing low.
Price Objective: Risk-to-reward ratio 1:2 (i.e risking 50 pips to make 100 pips). This usually works great for me.
USD/CAD 4 Hour Chart Sell Trade Example
- Criteria #1: VOLCANOWMA Down Arrow (Red)
- Criteria #2: Price must be trading below the 100 simple moving average
- Criteria #3: Trend Strength (below the main chart) 70% red or more
Protective Stop-Loss: Set stop 5 pips above the most recent swing high.
Price Objective: Risk-to-reward ratio 1:2.
Good luck and I really hope you can profit from my simple strategy.