True Point Trading System For MT4

True Point Trading System For MT4

Table Of Contents:

  1. True Point Trading System For MT4
  2. Selecting the trading instrument
  3. True Point Trading System For MT4 - Long trade setup
  4. True Point Trading System For MT4 - Short trade setup
  5. Trade Management
  6. True Point Trading System 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 True Point Trading System For MT4 is a very simple strategy developed to ease the process in the trend trading system. This system is often called the TPT system and many novice traders have changed their life by mastering this trading method. In this system, trend color signal and true point signal has been used as the main indicator. But to improve our accuracy, we will use the Trend color signal indicator and simple basics of the Forex market. For instance, the potential zone for trading will be determined with the help of line tools. Those who have advanced skills can also use the Fibonacci retracement tool as it is often considered as the best tool to identify the endpoint of retracement.

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Now let’s come to the True Color signal indicator. The indicator registers a green bar in the panel when the price is moving along the bullish trend. The red bar is registered for the price movement supporting the bearish trend. When you spot the yellow bar in the indicator panel, consider the asset in the retracement phase. To be clear, if the last bar is green before the yellow bar is registered, you can expect the price to fall. The drop in the price should not be considered as a bearish moment favoring the trend rather it should be considered as a minor correction in the price. And we will be using this yellow bar to prepare ourselves to take a long and short trade.

Selecting the trading instrument

You have to follow this step very carefully. The rookies often get confused and fail to use the True Point Trading System in a standard way since they don’t have the basic skills to pick the right instrument. Some retail traders think by taking the trades in the major pair can ensure the efficiency of the system. Fact is, major or minor currency pair doesn’t matter as long as the trades are taken in the trending asset. But if you look for the trade signals in the ranging market, you will soon get confused by seeing the frequent color change in the bars of the True color signal indicator.

Analyzing the existing trend in the market is a simple task. Evaluate the price movement in the 1 hour or 30-minute time frame. The price should make nice swings highs and lows. Higher highs in the market represent a strong uptrend and lower lows tell us the trend is bearish. Based on the market trend, we have to identify the potential trade signals. And always be aware of the news that holds the potential to change the trend. For instance, NFP, ECB press conferences, interest rate decisions, etc. can alter well-established trend direction in just the blink of an eye. So, keep yourself tuned with the economic calendar so that the True Point Trading System can work like charm.

True Point Trading System For MT4 - Long trade setup

The quality of the trade signals greatly depends on your basic skills. Failing to draw the support level in the right manner can lead to disaster. Connect the key swings in the market with the line tools so that you can identify the potential place to take the long trade. Since the price of an asset moves with minor retracement, you should see a retest of the support line. Before the retest takes place, the color of the bar in the True color signal indicator will turn yellow. The bearish correction of the price will come to an end after the price hits the support level. And you should see a bullish bounce of the price at your drawn support level.

Before you take the long order after the bullish bounce, you have to get confirmation from the True Color signal indicator. At the true color signal indicator, you should notice the bar has changed to green color. The green bar acts as the final confirmation to open the long trade. Place your stop below the support level and exit the trade when you have achieved 30 pips profit. Note that the trade must be taken with a small lot so that you don’t have to lose big money when the price hits the stop loss level.

True Point Trading System For MT4 - Short trade setup

So far we have learned how to use the True Point Trading System most traditionally. But now we will be taking the trades by using some of the most advanced methods. Since our priority is to take the short trade, we will use the highs and lows. Draw the bearish Fibonacci retracement level from the swing high to low. The price should form a bearish price action signal after hitting one of the major Fibonacci retracement levels. During the retracement phase, the color of the bars in the True color signal indicator will be yellow.

The rejection of an important Fibonacci retracement level will form a bearish candlestick pattern. But those who don’t know the price action signals can look for doji, a bearish pin bar, inside the bar, and the engulfing pattern. After spotting the bearish rejection in the price, we will wait for the green bar in the indicator panel. As the True color signal indicator changes its bar to red, we will open the short trade by placing the top above the rejected retracement level. The take profit will be set to the low of the price which was used to draw the bearish retracement levels. Note that, by taking the trades using this advanced technique, you can find trade setups with a RR ratio of 1:4 or more.

Trade Management

The professional users of the True Point Trading System are well are of the probability factors associated with the trading profession. The system might provide excellent trend trading opportunities but there is no assurance you will money from a certain trade setup. Since we have to deal with the uncertainties in every trade, we have to be cautious with your risk exposure. Intellectual traders love to reduce the risk to 2% of their account balance as it provides them stress-free trading environment. If necessary, you can trade with 1% risk and use the advanced method to secure a big risk to reward ratio. By using the advanced method, you can easily earn a big amount of money without taking a high risk.

After using the True Point Trading System for more than six months, you will become extremely confident. This is the time when you will start taking multiple trades with the system. But to manage multiple trades efficiently, you have to know about currency pair correlation factors. For instance, taking longer in the EURJPY pair and shorting the USDJPY pair will not make sense since the current correlation between these two assets is positive. This means, if the price of EURJPY goes higher, the price of USDJPY is most likely to move up. So, remember this fact when you start dealing with multiple assets.

True Point Trading System For MT4 - Conclusion

Experienced traders know a lot about the market. As a full-time trader, you must have the devotion to learn new things. Knowing about the True point trading system is not enough. Educate yourself about the fundamental and sentimental factors of the market. This will provide you better insight into the market and protect your capital from big losses. Most importantly, you will develop the unique ability to ignore good signals in the complex state of the market.

Mastering a professional trading strategy is an easy task but making a consistent profit with that system requires strict discipline. To succeed as a trader, you must follow the exact guidelines mentioned in this article. If you intend to make some changes in the strategy, make sure you test the new parameters in the demo environment. And try to know more about the Japanese candlestick as it will make more skilled in executing the trades.

Download the complete system description and the files here:

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