Trendlord strategy – Basic principlesMonday, 11 December 2017 13:10
The Trendlord strategy is one of the trend trade techniques; therefore, it's recommended to use it while trading highly volatile currency pairs. It is based on the same-name indicator, which is very similar to a traditional MACD. The moving average is used additionally.
Trendlord Strategy is quite safe, in comparison with many other trading techniques. This strategy involves lower risks and a steady profit.
Description of the Trendlord strategy
Firstly, pay attention to the fact that this technique demands the need of trading only with dynamic pairs on the hour chart. The EUR/USD pair shows the best results.
It should be noted that trading is conducted during a trend, and you should open orders towards the tendency.
Having worked with this system, a trader needs to set up two indicators:
- Exponential Moving Average with a period of 100; it will produce indications according to the close prices. Also, you should activate additional Fibonacci levels in the “Levels” tab.
- The Trendlord indicator should be set twice with periods of 150 and 5, relatively.
The key technical instrument in the Trendlord strategy is precisely the same-name trading robot, and EMA serves as a support line. The first robot is the improved model of MACD and allows tracking the trend movement and guiding its direction.
On the chart, the primary indicator looks like a histogram with columns of red and blue colors, which shows a downtrend or an uptrend, relatively.
It is easy to set up all technical tools on the chart. Afterward, the trading area will look like that:
Market Entry by Trendlord Strategy
Trendlord Strategy is more efficient when there is a long-term trend in the market. To find out the trend direction, one should analyze the moving average with a period of 100. If EMA goes lower than the price level, it means that tendency will go up. If an indicator is higher than the price, there is an uptrend. Therefore, you should filter the signals of the primary instrument of the strategy.
Having indicated the trend direction, you will understand where you should open a position. You should open a Buy order after closing a signal candlestick. If the following conditions are met:
- ЕМА is below the price chart;
- Both Trendlord lines are blue.
In the picture below, there are conditions recommended for a buy order.
You should open a sell order after closing a signal candle if the conditions opposite to a BUY position are met:
- ЕМА is higher than prices;
- The indicators are red.
To open a buy order safely, you can use one of these options:
- Not far from the previous minimum or in 40 pips from the moment of opening the position;
- Not far from the Fibonacci level of 15; this is the most efficient option.
Market Exit according to Trendlord Strategy
You can close the orders following several scenarios:
- Automatic closure on a Take Profit – the order should be placed at the level, twice as high as for a stop-loss;
- The Trendlord indicator has changed the color;
- The position of EMA has changed relative to the price.
The most efficient option is considered to be a manual transfer of Trailing-Stop depending on the price movement in an expectable direction. Also, you can consider both levels of Fibonacci and current extremes of the price.
It is to be recalled that a half an hour before the release of the important economic news, and 30 minutes after that, do not trade at all since a gap can happen.
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