Power FX CFB Strategy For MT4

Power FX CFB Strategy For MT4

The Power FX CFB Strategy For MT4 is the trading system that uses a trend following trading strategy. This trading system can be applied to both the short term trading charts as well as the long term. Therefore, traders who are interested in a trend following method can closely follow this trading strategy. As you can see from the screenshots, there is quite a bit of room for improvement. But first let's take a look at how you can trade using the power FX CFB trading strategy.

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Before we go any further, the name of this trading strategy is derived from one of the indicators used. In total there are only three indicators used in the power FX CFB trading strategy. The first indicator is obvious, and this is the Heiken Ashi indicator. As you might already know, the Heiken Ashi indicator is used for showing the price trends. What is unique about this indicator is that it cuts off the noise from the market and shows the price trends in a very clear and visual way.

You can already determine by now on the course that we are going on. The Heiken Ashi indicator is often used only in a trend following trading system. The second indicator used is called the CFB adaptive velocity indicator. This is a trend following indicator which plots 3 lines. In some ways it looks similar to a price band indicator but only plotting on the sub window.

The CFB adaptive velocity indicator is a very customized indicator. There are a number of settings that are involved in this trading indicator. Therefore, not much is known on how this trading indicator works. If you are using this trading strategy for the very first time, then we recommend that you do not make any changes to the settings of this indicator. It is only after you gain familiarity that you can then tweak the parameters to see if it gives you any edge in the markets.

In the same sub window we also have a moving average indicator that is overlaid. The moving average is a three period smooth moving average indicator. This is the blue thick line that you see in the indicator sub window. One can assume that buy and sell signals can be confirmed as and when the CFB adaptive velocity indicator moves above and below the moving average line.

So far, the power FX CFB strategy is quite minimal in its approach. Some traders might feel that the lack of any further indicators on the price chart can be somewhat of an issue. Therefore, for such traders you can simply add additional indicators. Some of these can include either a price channel indicator or you can also use the Keltner channel or the Donchian channel indicators. Using these indicators can give you an additional level of familiarity with the price trends that are formed. Finally, for those who are still interested in further tweaking this trading system you can also apply the intraday pivot levels and use it as a take profit points for your trades.

Let's now take a look at how you can use these indicators to trade with the Power FX CFB trading strategy.



The Power FX CFB Strategy For MT4 – Long positions




In order to take a long position using the power FX CFB strategy, look to the sub window. Here we need to see the moving average trading above the CFB adaptive velocity indicator. This suggests that the market momentum is moving to the upside. You will also notice that the Heken Ashi candlesticks begin to plot in blue color marking a bullish trend.

Once the above setup is ready you can then take a long position at market. Set a long order to the high of the previous Heiken Ashi candlestick. Set your stop loss to the low of the very same candlestick. Ideally the candlestick where you enter the position should have formed or local swing low.

Once your order is triggered you can set your take profit level by using a fixed risk to reward ratio. Alternately if you are a price action enthusiast, then identify the previous support level or resistance level and set your take profit to that level. In using the second method, you might need to monitor your trades constantly.



The Power FX CFB Strategy For MT4 – Short positions




In order to take a short position using the power FX CFB strategy, look to the sub window. Here we need to see the moving average trading below the CFB adaptive velocity indicator. This suggests that the market momentum is moving to the downside. You will also notice that the Heken Ashi candlesticks begin to plot in pink color marking a bearish trend.

Once the above setup is ready you can then take a short position at market. Set a short order to the low of the previous Heiken Ashi candlestick. Set your stop loss to the high of the very same candlestick. Ideally the candlestick where you enter the position should have formed or local swing high.

Once your order is triggered you can set your take profit level by using a fixed risk to reward ratio. Alternately if you are a price action enthusiast, then identify the previous support level or resistance level and set your take profit to that level. In using the second method, you might need to monitor your trades constantly.



Is the Power FX CFB Strategy For MT4 profitable?


To conclude, the power FX CFB strategy can be used as both short term and long term trend following strategy. While there are obvious areas where this trading strategy can be improved, this also allows the flexibility and freedom for the forex trader to further customize this trading template.

Beginners can also make use of this trading strategy in order to understand how the markets work. However if you are a beginner, we do not recommend that you make use of this trading strategy in the real markets.

Download the complete system description and the files here:

FREE Power FX CFB Strategy

Download the FREE Power FX CFB Strategy for MT4.

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