Laser Trend Strategy For MT4
Table Of Contents:
- Laser Trend Strategy For MT4
- The Laser Trend Strategy For MT4 – Long positions
- The Laser Trend Strategy For MT4 – Short positions
- Is the Laser Trend Strategy For MT4 profitable?
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 Laser Trend Strategy For MT4 is a trend following system. Going by the visuals on this chart, you can see that it primarily makes use of the moving averages. There are about four moving average indicators in total. This means that the laser trend strategy is primarily a trend following system.
Experienced traders will notice the lack of any oscillators in this trading system. We find that the lack of any such oscillators can lead to incorrect trade entries. But you could fix this by simply adding a trading oscillator of your choice.
There are also the pivot point indicators on the price chart. These pivot points can be used for potential take profit levels for your trades. However, you can get rid of these indicators to convert this into a full-fledged trending following system.
The moving averages used on the price chart are the 5, 12 and 40 period exponential moving average. On top of this, there is another 40-period moving average as well. This is a custom indicator that is used. So far, the setup is not something unique and belongs to the traditional moving average based trading system.
The pivot point indicators on the price chart, work as they intend to. You can use these levels as take profit for your trade positions. However, in doing so, you could be limiting yourself to a small part of the trend. When the trends are strong, you will find that there is a potential to make huge profits. Therefore, traders should apply discretion into figuring out how to use this trading system, i.e: with or without the pivot point indicators.
On the price chart, we have a few other indicators such as the one that provides the up and down arrows which signal the price action. This comes from the trend signal indicator.
Let's now take a look at how you can trade long and short positions using the laser trend forex trading strategy.
The Laser Trend Strategy For MT4 – Long positions
For long positions using the Laser trend strategy, we look for a bullish crossover in the moving average indicators. Traders should know how the moving averages are positioned. Ideally, the two short term moving averages should already be making a bullish crossover. Following this, the next step is to wait for a confirmation.
You could potentially wait for price action to be completely bullish. This happens when you see the three moving averages turning bearish. But this might come after the price is trending for a prolonged period of time. Therefore, apply some subjectivity here.
Following the above, you should be seeing an up arrow pointing on the price chart. This will suggest that a swing low has formed. Once the conditions are right, take a long position at market. Identify the recent swing low that formed and then set your stop loss to this level.
Use the immediate resistance level that you find to the upside and then set your take profit level here. Alternately, you could choose to keep part of the position open so that the remainder of the trade plays out when the trend is strong.
The Laser Trend Strategy For MT4 – Short positions
For short positions using the Laser trend strategy, we look for a bearish crossover in the moving average indicators. Traders should know how the moving averages are positioned. Ideally, the two short term moving averages should already be making a crossover. Following this, the next step is to wait for a confirmation.
You could potentially wait for price action to be completely bearish. This happens when you see the three moving averages turning bearish. But this might come after the price is trending for a prolonged period of time. Therefore, apply some subjectivity here.
Following the above, you should be seeing a down arrow pointing on the price chart. This will suggest that a swing high has formed. Once the conditions are right, take a short position at market. Identify the recent swing high that formed and then set your stop loss to this level.
Use the immediate support level that you find to the downside and then set your take profit level here. Alternately, you could choose to keep part of the position open so that the remainder of the trade plays out when the trend is strong.
Is the Laser Trend Strategy For MT4 profitable?
Based on the above, we can deduce that the laser trend strategy is not the laser precision based trading signals that one expects. It is a trend following system that works, but there is nothing laser based about this trading system. Thus, the laser trend system is just another trend following strategy based of the moving averages.
Traders who prefer to trade with the trend will find the laser trend strategy to be quite unique in its approach. It makes use of the standard moving averages as part of the trading system. However, the lack of any oscillators leaves a lot to be desired.
But traders can overcome this by making use of any oscillator of their choice. You can add the Stochastics or the RSI (relative strength index) trading oscillator as some of the indicators to be used in this trading system. Without the use of the trading oscillators, it can be a bit difficult specially to pick the turning points in the price.
This trading system can be a long term trading strategy, if you use on the higher chart time frames. Even when you use this trading system on the 15 minute chart, depending on the trend, there will be times when your holding period for the trades can be for longer periods of time.
Therefore, traders should bear this in mind when you are using this trading system. If you are someone who prefers to make use of a dynamic short term scalping system, then the Laser trend strategy might not be suitable for you.
We can recommend the laser trend strategy even for beginners due to the simplicity of this trading system.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
