Optimum Moving Trend Forex Trading Strategy

The Optimum Moving Trend forex trading strategy has a win-rate that far exceeds 50%, and offers a better than 1.335 reward/risk ratio, making it a worthy tool that every trader must have.

Indicators such as the i-AMA-Optimum, hull-moving-average, and BSTrend indicators are used in formulating the system, which allow it scan the market for trend, smoothen price and spot trend exhaustion in that order.

Chart Setup

MetaTrader4 Indicators: i-AMA-Optimum.ex4 (Default Setting), hull-moving-average.ex4 (Default Setting), BSTrend.ex4 (Inputs Variable Modified; period=36)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following rules or conditions hold sway:

  1. If the black dotted orange line of the i-AMA-Optimum indicator intersects the line (mostly green) of the hull-moving-average indicator bottom up as shown on Fig. 1.0, while price trades somewhat above, a buy signal is said to be in place.
  2. If the deep sky blue vertical bars of the BSTrend custom indicator gets aligned somewhat above the 0.00 level, price is said to be driven higher i.e. a signal to buy the designated currency pair.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes center stage:

  1. If while a buy trend is ongoing, price closes below the black dotted orange line of the i-AMA-Optimum indicator, it is an indication of a possible bearish reversal, as such an exit or take profit will suffice.
  2. If the BSTrend MT4 indicator displays a violet vertical bar that is placed below the 0.00 level within its window (refer to Fig. 1.0), an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the black dotted orange line of the i-AMA-Optimum MT4 indicator intersects the line (mostly dark violet) of the hull-moving-average in a top downward fashion as seen on Fig. 1.1, while price trades fairly below, a sell signal is said to be in place.
  2. If the violet vertical bars of the BSTrend custom indicator gets aligned somewhat below the 0.00 level, price is said to be pushed lower i.e. a signal to sell the selected forex pair.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a sell trend is running, price closes above the black dotted orange line of the i-AMA-Optimum indicator, it is an indication of a possible bullish reversal, as such an exit or take profit will do.
  2. If the BSTrend MT4 indicator displays a deep sky blue vertical bar that is placed above the 0.00 level within its window (see Fig. 1.1), an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The i-AMA-Optimum.ex4 is an optimized version of the Kaufman’s Adaptive Moving Average (AMA) that was originally developed by Perry Kaufman and finds use on short and long periods.

The Hull-Moving-Average.ex4 is a popular trend following indicator that is designed on the moving averages with period 21.

It tries to remove lag altogether and succeeds in enhancing smoothing concurrently.

The BSTrend.ex4 is one of the most valuable trend finder indicators that deploys colored bars within its indicator window to define bullish (deep sky blue) and bearish (violet) market sentiments.

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