Forex Soloist Trend Following Strategy
Forex Soloist Trend Following Strategy;
This is a simple yet profitable trading system. The beauty of it lies in its simplicity of
using only two popular indicators: EMA and RSI
I am going to use 1H+ timeframe for this system and it can be applied to any currency
pair. I suggest you use it on EUR/USD, GPB/USD and USD/JPY.
OK, it’s time to get started now. We will set up the following indicators
– 80 EMA (exponential moving average)
– 21 EMA (exponential moving average)
– 13 EMA (exponential moving average)
– 13 EMA (exponential moving average)
– 5 EMA (exponential moving average)
– 3 EMA (exponential moving average)
– RSI (21)
Trading rules
80 EMA indicates a major trend direction. When the price goes above 80 EMA, it implies an uptrend and if it goes opposite – downtrend.
· 21 EMA and 13 EMA give us a current trend direction.
· While 13 EMA stays above 21 EMA – uptrend occurs.
· If 13 EMA stays below 21 EMA – downtrend
· RSI (21) value is above 50 suggest an uptrend, below – downtrend
Entry Rules for long trade
We enter a long trade (buy) when
· 3 EMA crosses 5 EMA upward in an uptrend market
· Both 3 EMA and 5EMA cross a channel of 13 and 21 EMA
· RSI is above 50
· Both 21 EMA and 13 EMA are above 80 EMA
Exit Rules for long trade
We exit our trade when 3 EMA crosses below 5 EMA or RSI < 50
Entry Rules for Short Trade
We enter a short trade (sell) when
· when 3 EMA crosses 5 EMA downward in a downtrend market
· both 3 and 5 EMA cross the 13 and 21 EMA
· both 21 EMA and 13 EMA are below 80 EMA
· RSI is below 50.
Exit Rules for short trade
We exit our trade when 3 EMA crosses above 5 EMA or RSI > 50
Stop loss
For 1-hour timeframe: stop loss = 20 – 30 pips… depending on the volatility of the
currency pair. For more volatile pair, like GBP/USD, stop loss = 30 pips. For less volatile
pair, like EUR/USD, use stop loss of 20 pips.
If you use other timeframes, tweak the stop loss accordingly to fit your trading plan and
your risk tolerance.
Next, I am going to show you a few sample trades to help you understand more clearly
how to use this system.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Soloist Trend Following Strategy?
- Download Forex Soloist Trend Following Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Soloist Trend Following Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
