Trend following strategies are one of the most popular types of trading strategies among traders. This is because trend following strategies work. Not all trend following strategies result in high probability trade configurations, but trend following strategies usually allow traders to squeeze as many pips as possible on a winning trade. This is because traders are able to enter the market when the trend starts and exit when the trend starts to reverse.
One of the most popular types of trend following strategies are crossover strategies. Most newbie traders would come across one and trade them for a while. Some crossover strategies are profitable and some are not. The key to a successful crossover trading strategy is to catch trades that would be trending. This is because many crossover strategies are not high probability trading configurations. Most, however, would allow traders to make large trend moves that could cover much of the losses and some gains.
However, the Gator Trend Forex Trading Strategy is a high probability trend that follows the strategy. It is a variation on a crossover strategy, but based on modified moving averages contained in a custom indicator. This particular trend following strategy aims to extract as much profit as possible from the market based on short term trends.
The Gator ad
The Gator indicator is a custom trend following indicator. Three modified moving averages are used that are preset to the short term trend.
These moving averages cross each other whenever the trend reverses. In a bullish trend reversal, the short-term moving average would exceed the longer-term moving averages. On the other hand, if the short-term moving average falls below the longer-term moving average, it means a bearish market reversal.
In a strong trend or during market expansion phases of a trend, the moving averages tend to fan out. The further apart the moving averages are, the stronger the trend.
The Forex Major Trend Indicator
The Forex Major Trend Indicator is a custom indicator that shows the tendency of the market trend based on a confluence of the rules built into the indicator.
Whenever the Forex Major Trend Indicator detects a bullish market condition, the indicator will start printing blue bars, while for a bearish market condition, it will print red bars.
If you were to visually observe this indicator, you would find that this indicator tends to be quick to respond and is one step ahead of most lagging indicators. In fact, it tends to follow the short-term trend.
Trading strategy concept
The Gator Trend Forex Trading Strategy is a crossover strategy based on the modified moving averages of the Gator indicator. This is then confirmed by the change in color of the main Forex trend indicator. However, the confluence of the two indicators should be exactly at the same candle. This is because the confluence of the two complementary indicators usually occurs when the trend reversal shows momentum.
Time window: 1-hour, 4-hour, and daily charts
Currency pairs: Major and minor pairs
Trading session: Meeting in Tokyo, London and New York
Buy (Long) Trade Setup
- The red line on the Gator indicator should cross over the green and blue lines, indicating a bullish trend reversal
- The Forex Major Trend Indicator bars should turn blue, indicating a bullish trend reversal
- The above rules should apply to the same candle
- Enter a buy order for the confluence of the above rules
- Set the stop loss on the support below the entry candle
- Close the trade when the red line on the Gator indicator breaks below the green and blue lines, indicating a possible bearish trend reversal
- Close the trade when the Forex Major Trend Indicator bars turn red, indicating a possible bearish trend reversal
Sell (Short) Trade Setup
- The red line on the Gator indicator should cross below the green and blue lines, indicating a bearish trend reversal
- The Forex Major Trend Indicator bars should turn red, indicating a bullish trend reversal
- The above rules should apply to the same candle
- Enter a sell order for the confluence of the above rules
- Set the stop loss for resistance above the entry candle
- Close the trade when the red line on the Gator indicator crosses the green and blue lines, indicating a possible bullish trend reversal
- Close the trade when the Forex Major Trend Indicator bars turn blue, indicating a possible upward movement in the uptrend
This crossover strategy based on the short term trend of the Gator indicator is a high probability trading strategy that traders can also use to track trends from start to finish. However, because this strategy is based on the short term strategy, profitable trades may not continue as far as the longer term crossover strategies. The advantage, however, is that the traders are more in sync with the market, since the basis of the entries is in the short-term trend. It also allows traders to react faster to market reversals and enter trades a little earlier compared to other trading strategies.
Forex Trading Strategy Installation Instructions
The Gator Trend Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
The Gator Trend Forex Trading Strategy offers the opportunity to identify various peculiarities and patterns in price dynamics that are invisible to the naked eye.
Based on this information, traders can assume further price movements and adjust this strategy accordingly.
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How do I install the Gator Trend Forex Trading Strategy?
- Download Gator Trend Forex Trading Strategy.zip
- * Copy mq4 and ex4 files to your Metatrader directory / Experts / Indicators /
- Copy the tpl file (template) into your Metatrader directory / templates /
- Start or restart your Metatrader client
- Select the chart and timeframe in which you want to test your forex strategy
- Right click on your trade chart and hover over "Template".
- Move right to select the Gator Trend Forex trading strategy
- You will see that the Gator Trend Forex Trading Strategy is available on your chart
* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already built into the MT4 indicators of the MetaTrader platform.
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