Different traders have different styles when it comes to trading duration. Some traders prefer scalping, others prefer day trading, others do swing trading, and a few prefer position trading. Different duration styles have its own advantages and disadvantages.
Scalpers trade on the 1-minute or 5-minute chart and prefer to enter in and out of the market in a matter of a few minutes. Day traders trade anywhere from the 5-minute chart to the 1-hour chart. These traders have a time horizon of within a day for each trade. Swing traders trade the 4-hour to the daily charts. These traders would trade anywhere from within a week to maybe a couple of weeks. Position traders on the other hand trade on higher timeframes and have a horizon of a few months just as investors and big bank traders do.
While scalping and day trading have the advantage of having a large number of trades in a given period, they also have the disadvantage of lower efficiency based on their profits compared to the cost of each trade. Some forex pairs may have a trading cost of a few pips while scalpers also earn just a few pips per trade, which may be counter productive if the scalper’s accuracy is very low.
Swing trading on the other hand have the advantage of a very good efficiency based on the cost per trade and the potential yields. In fact trading cost may be a non-issue for many swing traders. They have the potential to earn more than a 100 pips per trade while still having the same cost as the scalper and day trader.
In this strategy, we would be looking at a simple trading strategy which thrives on swing trading time horizons.
The Super Trend indicator is a reliable trend following technical indicator. In fact, it is a very popular custom technical indicator which many traders use for trading trend following strategies.
The Super Trend indicator is based on an underlying Average True Range (ATR) to identify the direction of the trend.
One of the more popular ways traders identify trend reversal is through the use of ATR. Traders identify trend reversals by looking at how deep price has reversed compared to the average true range. For example, a trader may use a threshold of a multiple of 3 time the ATR. If price reverses against the current trend by more than 3 times against the current trend, then the market is considered to be reversing.
The same idea is applied with the Super Trend indicator. It plots a line opposite the direction of the trend in relation to price action. The line is based on a multiple of the ATR. If price action reverses against the Super Trend indicator and closes over the line, the market is considered to have reversed and the Super Trend line shifts.
A lime line below price action indicates a bullish trend, while a red line above price action indicates a bearish trend.
Traders can use these indications as a trend bias filter. Traders can also use the shifting of the line as an indication of a potential trend reversal.
F Plagiat 2
F Plagiat 2 is a custom trend following technical indicator which is based on a modified moving average line.
This indicator plots a moving average line which is characteristically very responsive to price action movements. In fact, this line hugs price action very closely. This makes it an ideal entry signal indicator based on short-term momentum reversals.
The line it plots also changes color depending on the direction of the momentum it detects. A lime line indicates a bullish momentum, while a red line indicates a bearish momentum. Changes in the color of the line indicates a potential short-term trend reversal and can be used as an entry signal.
Super Trend F-Plagiat Forex Swing Trading Strategy is a simple trend continuation swing trading strategy using the Super Trend and F Plagiat 2 indicator.
The Super Trend indicator is mainly used to identify trend and trade direction. Trend direction is simply based on the location of the Super Trend line, as well as the color of the line. It is also confirmed based on the characteristics of price action, whether it is creating higher or lower swing points. Trades are taken only in the direction of the trend.
The F Plagiat 2 indicator is used as an entry signal indicator. The entry signals are simply based on the changing of the color of the F Plagiat 2 line, which usually coincides with a momentum reversal or a swing point.
Preferred Time Frames: daily chart only
Currency Pairs: FX majors, minors and crosses
Trading Sessions: Tokyo, London and New York sessions
Buy Trade Setup
- The Super Trend line should be below price action and should be lime.
- Price action should have rising swing points.
- Enter a buy order as soon as the F Plagiat 2 line changes to lime.
- Set the stop loss on the support below the entry candle.
- Close the trade as soon as the F Plagiat 2 line changes to red.
Sell Trade Setup
- The Super Trend line should be above price action and should be red.
- Price action should have dropping swing points.
- Enter a sell order as soon as the F Plagiat 2 line changes to red.
- Set the stop loss on the resistance above the entry candle.
- Close the trade as soon as the F Plagiat 2 line changes to lime.
The Super Trend F Plagiat Forex Swing Trading Strategy is a decent trend following swing trading strategy. It has the capacity to produce consistent results when used on a properly trending market condition.
There will be times wherein the returns could be lower than the risk placed on the stop loss if the entries and exits are not managed properly. However, traders who can time the entries properly would have decent risk-reward ratios.
Traders who tend to have lower yields due to the minor reversals on pullbacks could make use of a fixed take profit target price rather than manually entering and exiting a trade based on the F Plagiat 2 line. This may yield a more consistent risk-reward ratio. However, we will be forgoing the higher yielding trades during sudden market thrusts in the direction of the trend.
Forex Trading Strategies Installation Instructions
This 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.
This strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this strategy accordingly.
Recommended Forex MetaTrader 4 Trading Platform
- Free $50 To Start Trading Instantly! (Withdrawable Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
How to install this Forex Strategy?
- Download the zip file
- *Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Right click on your trading chart and hover on “Template”
- Move right to select this strategy
- You will see the strategy setup is available on your Chart
*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.
Click here below to download: