If you want to be a successful trader, you should have a good trading system. Next step is learning the system and following it. Anyway, the system I am going to show you suits for short time traders. If don’t have lots of time to spend in front of computer, this system is perfect for you.
After you copy the necessary files and run MetaTrader 4, open EUR/USD, GBP/USD or any other major pair that you want to trade. Set chart time frame to 5mins and apply the template. You will see a chart like this:
Before I go in details there are some important rules that you should always remember. No matter what you are trading, what your strategy is, you have to follow these rules in order to make profit.
– Do not use high leverage.
– Follow the system.
– Never get motioned from other trader’s calls, only trade what you triggered by yourself.
– Follow the rules.
Now let me explain our trading strategy:
As you can see, there are up and down arrows on the chart, those are our trading signals BUT we are not going to follow them blindly. We need MA (moving averages) cross-over to confirm the direction.
So basically we will go long (buy) when; red MA line is over the blue MA line and we see a yellow arrow. We will go short (sell) when; red MA line is under the blue MA line and we see a pink arrow.
Check the chart below:
1. We see the yellow arrow but red MA line is the blue line. We wait until the red MA line to cross over. We go long once it happens.
2. This was a false signal because red MA line didn’t go below the blue line.
3. All conditions were met, we went long.
4. We got the pink arrow signal, we also see that red MA
5. Another false signal, we didn’t open any position because MA cross-over never happened.
6. Red MA
7. Again a false signal but our MA cross-over filter is protecting us against false signals.
9. We got the yellow arrow signal, when the red MA>blue MA; we opened a long position.
Remember that this is a scalping system so our S/L is 10 pips and T/P is 10 pips.
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