Forex indicator strategy “Trend trix Cycle”
The use of technical analysis is one of the main areas of trading within day
trading.
Thanks to the combination of technical indicators, a trader has the opportunity to create his own trading strategies, taking into account the pros and cons of each of the elements; their competent combination allows you to build your trading in a systematic way, and not into chaotic transactions without any basis for action.
The Forex indicator strategy “Trend trix Cycle” allows you to trade on any currency pair, since thanks to the combination of a trend indicator and a number of oscillators, the strategy becomes universal and unpretentious to a specific instrument.
The strategy is aimed at trend movements, therefore, in order to avoid unnecessary market noise, the author suggests trading on a thirty-minute chart or higher.
All indicators that are present in the trading strategy are intended exclusively for the Meta Trader 4 , therefore, before starting work, all tools must be installed. To do this, enter the data directory and place the indicators downloaded at the bottom of the article in the indicators folder, and place the template in the Template folder.
After updating, in the "Navigator" panel, enter the list of templates and launch "Trend trix Cycle". If you haven't missed anything, your desktop will look like this:
Basic elements of an indicator strategy.
The strategy is based on four indicators, and each of them equally influences the entry into a position, however, we can safely highlight one trend and three oscillators, which are located in additional windows.
1) Mega trend – located directly on the chart and displayed as a red and blue line. In fact, we are dealing with an ordinary moving average, so in the settings you can optimize the period of the moving average and its shift to suit your preferences.
2) Schaff Trend – located in the first additional window and there are two indicators concentrated in it. In the settings for each line you can see the period of the indicator, and the Schaff Trend itself is built on moving averages , which makes it easy to change the settings to your taste.
3) MTF Trix Trend is a popular indicator that was pulled from the THV trading strategy. It is located in the second window and acts as a filter. In the settings, you can change the period of the indicator, increasing its sensitivity or smoothing.
4) MT4 TRENDPRO – all settings are closed, so it cannot be optimized.
Signals
The following conditions will serve as a signal to enter a buy position:
1) Mega trend indicator is blue.
2) The Schaff Trend indicator is green.
3) MTF Trix Trend indicator is green.
4) MT4 TRENDPRO indicator is blue.
All conditions must be strictly observed, and they rarely appear at the same time, so it is necessary to wait until the full configuration of conditions is built.
Stop loss must be set at local minimums and maximums.
Profit is equal to two stop orders. For example, look at the picture below: The following conditions will serve as a signal to enter a sell position:
1) The Mega trend indicator is red.
2) The Schaff Trend indicator is red.
3) MTF Trix Trend indicator is red.
4) MT4 TRENDPRO indicator is red.
All conditions must be strictly observed, and they rarely appear at the same time, so it is necessary to wait until the full configuration of conditions is built.
Stop orders must be placed at local lows and highs . Profit is equal to two stop orders. For example, look at the picture below:
Management of risks. Alternative exit from the position
Many people mistakenly perceive unprofitable trades and throw the strategy aside. Remember, stop orders are part of the system, and not a single professional trader in the world trades without intermediate losing trades.
Therefore, calculate your lot wisely and do not forget that the risk per position should be equal to two percent, and even less for initial work. For an alternative exit from a position, you can use the Mega trend indicator, namely, close the position if the color of the line changes to the opposite of your signal.