Forex Stop Loss Take Profit Strategy with Trend Signal System. Two importance question for all traders are  What is your best Trading System and  How to place stop-losses. The first thing a trader should consider is that  the Trading System must be easy to master and  the stop-loss must be placed at a logical level.
Forex Trend Signal System works well in 4H time frame but we can use the trading system also in 30M, 1 H, or Daily time frames. As a trend follower, you should know that you only make money when there’s a trend.
There are different ways to enter a trade and there isn’t the best way to do so. Rather, it should be a method you are comfortable executing.
Some methods you can consider are moving average crossover, breakouts or pullbacks. But in this article, I will show you HOW TO ENTER a trade and WHEN TO EXIT if you are wrong with this ForexWOT Trend Signal System.
Remember entry alone will not give you an edge, so do not focus too much on it that you neglect the other important aspects of trading like risk management, position sizing etc.
- Best Time Frames: 4H
- Recommended Currency Pairs: EURUSD, GBPUSD, GBPJPY, and USDJPY
- Trend Signal Bullish (Blue color bars)
- FSET V PODVALE Green color
- Profitable Strategy 1 Green color
- Price upward and above Blue color 7-21-55 h2 indicator
- Golds Band indicator Blue color line and above Blue color 7-21-55 h2 indicator
- Trend Signal Bearish (Yellow color bars)
- FSET V PODVALE Red color
- Profitable Strategy 1 Red color
- Price downward and below Magenta color 7-21-55 h2 indicator
- Golds Band indicator Red color line and below Magenta color 7-21-55 h2 indicator
Before putting on each trade you must know when to get out when the price goes against you. You do not want to be in a trade watching price moving further against you till the point whereby you blow your account.
The only way we are going to make money is by having LARGE PROFIT to cover the series of SMALL LOSSES. And to have small losses we need to cut our bad trades as soon possible.
A thing to note is the larger your stop loss, the higher your winning rate but at the expense of a low reward to risk ratio.
The Best Take Profit to Stop Loss ratio is 1:2 or 1:3. Look at the example below.
There are basically two logic-based methods for exiting a trade:
- Let the market hit your predetermined stop loss which you placed as you entered the trade.
- Exit manually because the price action has formed a signal against your position.