Trend trading strategy Forex Trend Profits Systems: an effective profitable system

Greetings, dear readers of ForTrader.org magazine. Today I will introduce you to a trend trading strategy called Forex Trend Profits Systems.

The strategy was named so because of the exclusive trend indicator, which was once purchased on one of the sites. This indicator is the basis of the Expert Advisor, which the author is actively selling in the English-language segment for 100$. So the Forex Trend Profits Systems trading strategy is not only profitable, but also a kind of gift for the free fans of paid strategies.

Input parameters

• Currency pairs: any
• Timeframe: H1 to H4
• Trading hours: 24 hours a day
• Type of strategy: trending, indicator

Installing indicators and trading strategy template

The Forex Trend Profits Systems trading strategy is installed in a standard way. If you have done everything correctly, the desktop of your terminal should look something like this:

Used indicators

The Forex Trend Profits Systems trading strategy consists of five indicators, three of which act as a filter. Some indicators may overdraw, so entry into the position is only on the closed bar.

So, now briefly on each indicator:

• Forex Trend Profits Indicator - The author's trading indicator, which is displayed in the form of arrows of red and blue color. In the strategy is responsible for entering a position. In fact, the settings are closed, open only the ability to enable notification and the color of the indicator arrows.
• 231_LSMA_in_Color - indicator is displayed as a line of green and red color. The moment of line color transition is indicated by yellow color. The indicator is a modification of the moving average. In the settings you can change the colors of the line, as well as the period of the moving average. It acts as a trend filter in the strategy. If the line is colored red, the trend is bearish, and if the line is colored green, the trend is bullish. You can optimize the moving average as you see fit, and tailor your strategy to your trading style.
• Parabolic SAR - is a standard indicator of the MetaTrader 4 terminal, located in the "Trend Indicators" section. It is displayed in the form of green dots above and below the price. It can serve as a position filter in the strategy, or be used as a stop loss point. The parameter can be optimized.
• Coppock - The indicator is located in the first additional window in the form of a red histogram. It acts as a trend filter in the strategy. If the indicator histogram is above 0 level, the trend is bullish, and if the histogram is below 0 level, the trend is bearish. The indicator is based on a special algorithm, which you can read about in details here.
• CAO - The indicator is located in the second additional window in the form of a green and red histogram. It acts as a trend filter in the strategy. If the histogram is red, the trend is bearish, if it is green, the trend is bullish. The indicator is based on moving averages, parameters of which you can change in the settings at your discretion. More detailed information about the indicator here.

As you can see, almost all indicators can be optimized, which makes the Forex Trend Profits Systems trading strategy quite flexible to use.

Forex Trend Profits Systems Trading Strategy Signals to Buy

Entering the buy position if a number of such conditions are met at the same time:

• The Forex Trend Profits Indicator draws a blue up arrow.
• The indicator line 231_LSMA_in_Color is colored green.
• The point of the Parabolic SAR indicator is under the price.
• The histogram of the Coppock indicator is above the 0 level.
• The histogram of the CAO indicator is colored green.

Forex Trend Profits Systems trading strategy signals to sell

Entering the sales position if a number of such conditions are met at the same time:

• The Forex Trend Profits Indicator draws a red down arrow.
• The indicator line 231_LSMA_in_Color is colored red.
• The point of the Parabolic SAR indicator is above the price.
• The histogram of the Coppock indicator is under the 0 level.
• The histogram of the CAO indicator is colored red.

Setting a Stop Loss

Stop Loss is an indispensable part of any trading strategy. In this case, however, you can set it up in two ways:

• At local lows and highs.
• On the point of the Parabolic Sar indicator.

Both methods have the right to exist, so I recommend betting the one with a smaller stop loss.

Money Management

Literate money management is the basis of successful and stable trading. Like all classics, I do not recommend exceeding three percent risk per position.

Personal opinion of the author of the article

The strategy, in my opinion, has very easy rules for entering a position. I also really liked the ability to set a stop loss on the Parabolic SAR indicator, which allows you to move it to Breakeven on points.

Of the minuses - slightly outdated parameters of the indicator 231_LSMA_in_Color, so I recommend to optimize it. I can recommend the strategy to both beginners and professionals!

Download Strategy Template and Indicators

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