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Trend Follower System

The trader uses a trendfollowing system to trade currency pairs on daily charts for 2-3 weeks at a time. They identify trends using Bollinger Bands and Starc Bands, allowing for retracements. They enter trades when these indicators show a breakout of the trend and exit using multiple strategies like the Bollinger Bands intersecting a horizontal line or the Stochastic RSI crossing. The trader aims for a high hit rate by only entering when all criteria are met and looks at many currency pairs to diversify risk.

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181 views

Trend Follower System

The trader uses a trendfollowing system to trade currency pairs on daily charts for 2-3 weeks at a time. They identify trends using Bollinger Bands and Starc Bands, allowing for retracements. They enter trades when these indicators show a breakout of the trend and exit using multiple strategies like the Bollinger Bands intersecting a horizontal line or the Stochastic RSI crossing. The trader aims for a high hit rate by only entering when all criteria are met and looks at many currency pairs to diversify risk.

Uploaded by

Bbg Sky
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Trendfollower System (as posted by Trendfollower in the MoneyTec forum)

I wait for a new trend to emerge & then take a position.


I trade on the daily charts and sometimes stay in for 2-3 weeks depending how long the trend
runs.
I identify a new trend using a combination of Bollinger Bands & Starc Bands (Stoller rue
!"erage#.
!llowances for retracements are re$uired to stay in the trade. (healthy stop loss# I ha"e
definite entry & e%it strategies. I ha"e been trading on this system for the last 3 years.
&irstly I am always in with at least 3 currency pairs at any one time.
!s I close positions' I may be opening new ones. Because of the long term nature of my
trades pip spreads are not important to me so I look for new trend breaks amongst () odd
currency pairs.
I trade mini lots'so it is nothing to be in with multiple currency pairs. !lso good for risk
management as you dont ha"e all your eggs in one basket.
&alse signals about 3* -+*,.
Because I look at so many currency pairs I can afford to be fussy so my hit rate is fairly high. I
will only enter with the trend when all criteria is in place.
he -SI & S./0!SI/S are 1ust nice to ha"es.
2ormally my stop loss is around (3* pips but tighten it to take me out when ready to e%it. I
use smaller time frames (3* mins# with the trend to find the entry to the market. he S4! &
54! I only use !S .26 .& 06 I27I/!.-S when I want to e%it.
I use the Bollinger8Starc breakaway to enter a trade.
4y e%its are a little more complicated. I ha"e about 3 different methods for e%it. I normally
take the first to appear or pull my stop up tight and let it run further if it wants to. he nice
thing about trend trading' is that you don9t need to be at the computer all day long. 3 looks a
day is enough.
0ere is one of my e%it strategies. 5hen you enter a trade draw a yellow "ertical & hori:ontal
line as per attachment. 5hen the Bollinger line comes round and intersects the hori:ontal
line' e%it and take profit or wait until the S4! & 54! cross at the bottom. here is another
scenario I will e%plain after this.
Both my Bollinger intersect with the hori:ontal yellow line or the S4!854! cross will gi"e you
appro% the same pip profit in this instance )** odd pips.
0owe"er this is not a hard & fast rule. 0ere is my other e%it strategy which might occur (st.
5hen the top Bollinger starts cur"ing downwards the run is probably starting to slow down'
but not always. ;ess profit a"ailable but profit is profit if you dont feel comfortable trading
longer.

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