5min Trend Follower Strategy For MT4

5min Trend Follower Strategy For MT4

Table Of Contents:

  1. 5min Trend Follower Strategy For MT4
  2. Selecting the trading instrument
  3. 5min Trend Follower Strategy For MT4 - Long trade setup
  4. 5min Trend Follower Strategy For MT4 - Short trade setup
  5. Trade Management
  6. 5min Trend Follower Strategy For MT4 - Conclusion


Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.


The 5min Trend Follower Strategy For MT4 is developed to give the trader a better overview of the market. Most of us have heard, the trend is our friend. But very few know the key technique by which they can ride the trend. Traders use unnecessary tools and fail to identify the trend phase. To solve this problem and execute high-quality trade, we can rely on the 5min Trend Follower Strategy. EMA crossover signal, Rainbow MMA, slope direction line, Laguerre, pivot points multi time frame, and Fibonacci pivots are the main indicators used to develop this powerful trend trading strategy. You might not have a basic idea about these advanced indicators but after reading this guide, you can expect to trade with the trend with strong confidence.

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The first thing that will blow your mind is the colored Rainbow MMA. The different colored segments are going to act as a different layer of support and resistance. On the contrary, the slope direction line is going to determine the trend. When it is navy blue, look for the order. And if it is orange in color look for the short trade setup. The EMA crossover signal is responsible for creating the red and green arrows. These are the points where we will look to open a new trade. For the trade confirmation, our focus will be on the MACD and Laguerre signal line.


Selecting the trading instrument


Now you have a basic idea about the trade setup process used in the 5min Trend Follower Strategy. To improve the trade accuracy, traders are requested to select their currency pairs based on few important factors. Since our preferred time frame is the 5-minute chart, we have to select the instrument carefully. It’s very obvious novice traders will go for the major currency pairs, but selecting the best one among the major pairs require some advanced skills. For instance, you can’t take trades with the 5min Trend Follower Strategy when the trend is absent.

Taking the trades in the ranging or the consolidated period is the biggest mistake. Every trading system needs to suitable price action scenario for the algorithm to functions properly. And try to put yourself in the line of fire by choosing an asset that will digest major economic news in the next 1 hour. Major news releases can intensify the state of the trend causing bumpy rides of the trend trades. Since the system is designed to take the trades with tight SL, you must time your trade properly after researching the economic calendar. As we now know about the critical steps to select our preferred trading instrument, let’s move the trade execution process.


5min Trend Follower Strategy For MT4 - Long trade setup


We have already cleared our stance that the 5min Trend Follower Strategy needs a precise trend to function properly. So, our first step is to consider the slope direction line indicator color. It should be colored blue. The black colored channel inside the rainbow MMA should also have a positive slope. Wait for the bulls to clear a resistance level marked by the red horizontal line. As the bulls clear the path, you should see a nice green arrow created by the EMA crossover signal indicator. The green arrow is the indication that this is the right level to take the long trade.



Now we will have a look at the MACD indicator. Consecutive positive green bars should be present in the indicator panel which is a strong sign that the bulls managed to suppress the bears. In the Laguerre indicator, the value of the signal line will be near the bottom. Open the long trade with the SL price below the moving average of 34. The take profit will be fixed 20 pips for this system. Note that you can’t take the trade if the stop loss for the trade exceeds 10 pips. You must maintain a minimum 1:2 risk to reward ratio and only then you can expect to survive in this industry.


5min Trend Follower Strategy For MT4 - Short trade setup


A single system can be used in two different ways. First of all, you can use the simple technique just like the long trade setup. Secondly, you can use advanced techniques and improve the efficiency of the system by using your knowledge and skills. Now we will be looking for the bearish engulfing, doji, or the pin bar pattern at the 34 MA. The 34 MA channel should be positioned near the resistance line. Once the rejection is spotted, you should see the red arrow above the candle. Note that the slope direction line indicator must be colored in red when you spot the sell signal.



For the confirmation part, we have to take data from two indicators. At the MACD indicator, the green bars will be present on the negative side of the indicator panel. In the Laguerre indicator, we will see the signal line is sharply falling. The stop loss will be placed right above the high of the bearish PA signal. The take profit will be determined based on the 1:2 risk to reward ratio. Make sure you are using this technique to take the trades only with low-risk exposure. Some traders often take high risks as they think the price action signal grantees the 5min Trend Follower Strategy to generate profit. But in reality, no one can predict the outcome of any trade.


Trade Management



Managing the risk profile is more important than your trading strategy. The 5min Trend Follower Strategy can provide you classic signal but it won’t save you from the losses. The only way you can save your capital and walk in the safe path is hidden inside the risk management plan. As a full-time scalper, try to execute the trades with 1-2% risk. Never try to manage two running trades at the same time. And if you lose a trade, stop looking for the recovery trade during that session. It is better to take the day off and start trading in the next day with a fresh mindset.

Having a strong mentality gives the traders strong confidence to deal with the loss. The 5min Trend Follower Strategy might have a success rate of over 80% but if you fail to manage the risk in the losing orders, one losing order can wipe your trading account. So, be careful about your actions and try to stick to the rules of this system. To improve your discipline level, you can also rely on a trading journal.


5min Trend Follower Strategy For MT4 - Conclusion


Scalping is often called the most elite trading strategy as it holds the power to offer quick profit-taking the opportunity. Being a new trader, you should always think about the safety of the capital. Knowing about the function of this system should not make you overconfident. Some of the retail traders often start taking the trades with a 1:1 risk to reward ratio just to win most of the trades. But by doing so, they are pushing the recovery factor into great danger. Trade in the demo account for few months and you will realize the importance of the risk to reward ratio.

Successful traders always trade with caution since they know the consequence of taking short. While using the 5min Trend Follower Strategy, you should double-check the maximum risk exposure for the trade. Skilled investors never trade to earn money rather they trade with an expectation that they will lose a small amount of money if the trade goes against them. By having such a mindset, they overcome the biggest mental obstacles in the investment business and trade the market without any emotional attachment. Always be prepared to deal with the dynamic losses and this should provide you mental satisfaction while using the 5min Trend Follower Strategy.

Download the complete system description and the files here:

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Download the FREE 5min Trend Follower Strategy for MT4.

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I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

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