Trend Rider Strategy
Trend Rider Strategy
Trend Rider Strategy • Strategy Concept – Using two Moving Averages to identify entry for early trend and the Average Directional Movement Index indicator for exit.
• Time-frame – H1 and above.
• Currency Pairs – All currency pairs.
Vault of FX Strategies
Trend Rider Strategy • Indicators – Exponential Moving Average with period 12, EMA12. – Exponential Moving Average with period 36, EMA36. – Average Directional Movement Index with MT4 default setting, ADX14. Add level 40.
Chart with the Indicators
Vault of FX Strategies
EMA36
EMA12 ADX Level 40
DI-
DI+
Long Trade Set-up
Vault of FX Strategies
Trend Rider Strategy • Long Trade Set-up 1. EMA12 (Blue moving average) crossed above EMA36 (Red moving average). 2. Entry Price is where market comes back down to touch EMA12 (Blue moving average). 3. Distance between EMA12 and EMA36 must be at least 25pips.
Vault of FX Strategies
Trend Rider Strategy • Long Trade Set-up 4. Stop Loss is set at EMA36 (Red moving average). 5. Stop loss must be at least 30pips. 6. There is no pre-determined Take Profit. 7. Exit your trade when the ADX14 crossed above 40 and cuts back below.
Long Trade Example
The 2 EMAs have crossed
11
Enter Long when prices touch EMA12 at 1.0525
EP = 1.0525
12
Stop Loss will be at EMA 36 (1.0495)
EP = 1.0525 SL = 1.0495
Trade will exit when ADX goes below 40
Exit
EP = 1.0525 SL = 1.0495
Below 40
Trade will Take Profit at 1.0740 TP = 1.0740
Exit
EP = 1.0525 SL = 1.0495
Below 40
Short Trade Set-up
Vault of FX Strategies
Trend Rider Strategy • Short Trade Set-up 1. EMA12 (Blue moving average) crossed below EMA36 (Red moving average). 2. Entry Price is where market comes back up to touch EMA12 (Blue moving average). 3. Distance between EMA12 and EMA36 must be at least 25pips.
Vault of FX Strategies
Trend Rider Strategy • Short Trade Set-up 4. Stop Loss is set at EMA36 (Red moving average). 5. Stop loss must be at least 30pips. 6. There is no pre-determined Take Profit. 7. Exit your trade when the ADX14 crossed above 40 and cuts back below.
Short Trade Example
The 2 EMAs have crossed
EP = 1.4070
Enter Short when prices touch EMA12 at 1.4070
SL = 1.4120 EP = 1.4070
Stop Loss will be at EMA 36 (1.4120)
Trade will exit when ADX goes below 40 SL = 1.4120 EP = 1.4070
Exit
Below 40
Trade will Take Profit at 1.3780 SL = 1.4120 EP = 1.4070
TP = 1.3780 Exit
Below 40
Let’s Ride the Trends!
Trend Rider Strategy • Strategy Concept – Using two Moving Averages to identify entry for early trend and the Average Directional Movement Index indicator for exit.
• Time-frame – H1 and above.
• Currency Pairs – All currency pairs.
Vault of FX Strategies
Trend Rider Strategy • Indicators – Exponential Moving Average with period 12, EMA12. – Exponential Moving Average with period 36, EMA36. – Average Directional Movement Index with MT4 default setting, ADX14. Add level 40.
Chart with the Indicators
Vault of FX Strategies
EMA36
EMA12 ADX Level 40
DI-
DI+
Long Trade Set-up
Vault of FX Strategies
Trend Rider Strategy • Long Trade Set-up 1. EMA12 (Blue moving average) crossed above EMA36 (Red moving average). 2. Entry Price is where market comes back down to touch EMA12 (Blue moving average). 3. Distance between EMA12 and EMA36 must be at least 25pips.
Vault of FX Strategies
Trend Rider Strategy • Long Trade Set-up 4. Stop Loss is set at EMA36 (Red moving average). 5. Stop loss must be at least 30pips. 6. There is no pre-determined Take Profit. 7. Exit your trade when the ADX14 crossed above 40 and cuts back below.
Long Trade Example
The 2 EMAs have crossed
11
Enter Long when prices touch EMA12 at 1.0525
EP = 1.0525
12
Stop Loss will be at EMA 36 (1.0495)
EP = 1.0525 SL = 1.0495
Trade will exit when ADX goes below 40
Exit
EP = 1.0525 SL = 1.0495
Below 40
Trade will Take Profit at 1.0740 TP = 1.0740
Exit
EP = 1.0525 SL = 1.0495
Below 40
Short Trade Set-up
Vault of FX Strategies
Trend Rider Strategy • Short Trade Set-up 1. EMA12 (Blue moving average) crossed below EMA36 (Red moving average). 2. Entry Price is where market comes back up to touch EMA12 (Blue moving average). 3. Distance between EMA12 and EMA36 must be at least 25pips.
Vault of FX Strategies
Trend Rider Strategy • Short Trade Set-up 4. Stop Loss is set at EMA36 (Red moving average). 5. Stop loss must be at least 30pips. 6. There is no pre-determined Take Profit. 7. Exit your trade when the ADX14 crossed above 40 and cuts back below.
Short Trade Example
The 2 EMAs have crossed
EP = 1.4070
Enter Short when prices touch EMA12 at 1.4070
SL = 1.4120 EP = 1.4070
Stop Loss will be at EMA 36 (1.4120)
Trade will exit when ADX goes below 40 SL = 1.4120 EP = 1.4070
Exit
Below 40
Trade will Take Profit at 1.3780 SL = 1.4120 EP = 1.4070
TP = 1.3780 Exit
Below 40
Let’s Ride the Trends!
