SuperTrend Forex Trading Strategy – How You Get Rich Quickly From Forex Trading

How You Get Rich Quickly From Forex Trading. Remember you do not need all the indicators or trading systems in the world in order to become a successful trader. Moreover the majority of strategies and indicators are complex and ones are difficult to use in real trading.

 
The second truth I understood was all the best performing strategies I had ever seen before were simple and easy to implement. If the strategy is complex, the ambiguity will lead you to confusion and the confusion will lead you to losing your hard earned money.

So our second rule and the truth will be the following: IF WE WANT TO MAKE MONEY IN TRADING WE SHOULD CHOOSE THE STRATEGY THAT IS EASY TO IMPLEMENT AND HAS NO AMBIGUITY.

 

SuperTrend Forex Trading Strategy

Currency pair: any, but better cross-pairs that give good trends.
Time frame: any, but usually 4-hour
Indicators: supertrend, nonlagdot (value: 20)

 

 

 

A dot of Nonlagdot changes from red to blue. At the same time dots of nonlagdot should be above the Supertrend line. Also the Supertrend line should be green. A position should be opened by execution of a pending order.

The order is placed on the upper point of the market extremum, which is formed after the first rebounce of the market downward (when closing price is lower than previous one).

 

That is one should wait untill the price has exceeded the point of extremum, and only then buy. However, if the price fails to exceed the level of the point of extremum, one should wait.

After the formation of a new point of the market extremum, the order should be shifted to that point. If the color of nonlagdot or supertrend changes to red, the order shoud be canceled.

 

 

A dot of Nonlagdot changes from blue to red. At the same time dots of nonlagdot should be under the Supertrend line. Also the Supertrend line should be red. A position should be opened by execution of a pending order.

 

The order is placed on the lower point of the market extremum, which is formed after the first rebounce of the market upward (when closing price is higher than previous one).

That is one should wait untill the price has exceeded the point of extremum, and only then sell. However, if the price fails to exceed the level of the point of extremum, one should wait.

After the formation of a new point of the market extremum, the order should be shifted to that point. If the color of nonlagdot or supertrend changes to blue, the order shoud be canceled.

 

Notes:

• Market entries without placing pending orders are NOT RECOMMENDED.
• Pending orders for market entries are placed with the regard of the amount of the spread and additional 3 pips.

 

 

I exit when:

1. The price touches the Supertrend line, or
2. The Supertrend line changes its color, or
3. The price touches the first line of the Fibonacci fan. The Fibonacci fan is constructed from the point of the market extremum at the beginning of its movement and up (or down) to the opposite extreme point of the current market, that is, from the bottom to the top of the movement (when buying) and from the top of the movement to the bottom (when selling).
    
   It is important not to confuse: the Fibonacci fan is constructed not from the market entry point, but from the point of the beginning of directional movement or trend (up or down). Fibonacci fan line, which is closest to the price, serves as the exit level. And the exit order should be moved on this line.

 

Stop-loss is set:

1. On Supertrend line, or
2. Below near price swing, or
3. Under (over) the closest extremum of the market, which exceeds the Supertrend line in the opposite direction.

Notes:
Stop-loss order is placed with the regard of the amount of the spread and additional 3 pips.

 

 

The following money management is recommended: either not more than 10% of the capital per trade, or a progressive system (e.g. Fibonacci or semi-martingale). Martingale is not recommended because it is far too risky in case of the lack of capital after several consecutive losing trades.

Adding is recommended solely to profitable positions after the regular change of Nonlagdot color in the direction of the current trend.