Neuro Forex Strength Trend Predictor Trading System For MT4

Neuro Forex Strength Trend Predictor Trading System For MT4

 

Table Of Contents:

  1. Neuro Forex Strength Trend Predictor Trading System For MT4
  2. Indicator Used and Time Frames
  3. Trading Strategy
  4. Long entry
    1. Stop Loss and Take Profit
  5. Short entry
    1. Stop Loss and Take Profit Settings
  6. 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 Neuro Forex Strength Trend Predictor Trading System For MT4 is built to be a trading system that follows the trend of the asset. This system is built to filter out a lot of false signals that are typical of trend-following systems. Such filtering is achieved using a momentum indicator with histogram bars.


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Indicator Used and Time Frames

 

Several indicators have been deployed to compile strategy. These indicators are as follows:

 

    • Neuro Forex Strength Trend Predictor

 

    • QQE new histo alerts indicator;

 

    • EMA Crossover Signal



    • Support and Resistance # TLB OC version 02

 

Of these indicators, the QQE new histo alerts indicator is the oscillator which provides confirmation to the signals provided by the other indicators. Like most momentum indicators, it has a vertical range and a midline. It also has histogram bars, which are green in colour when above the midline, and show a red colour when below the midline. The switch from green to red and vice versa provides the basis for the signal provided by the QQE new histo alerts indicator. There is also a situation where yellow histogram bars appear. These are like the amber lights in a traffic stop light, telling the trader to pause while a reverse setup prepares itself to show on the chart.

The Neuro Forex Strength Trend Predictor detects the trend and paints the candlesticks or price bars in the colour of the trend. This indicator paints the candlesticks a green colour in an uptrend, a red colour in a downtrend and an amber colour when the trend is sideways.

The EMA crossover signal uses directional arrows that are also colour-coded to display the cross of the 4-period exponential moving average, above or below the 8-day exponential moving average.

The support and resistance indicator (Support and Resistance # TLB OC version 02) indicates areas where price has found support and resistance. Not only is this good to provide good entry spots, but the use of a support and resistance indicator is crucial in executing trade exits. This will be demonstrated later in this article.

This strategy can be traded on any currency pair and is optimized for use on the H4 charts.


Trading Strategy

 

The Neuro Forex Strength Trend Predictor Trading System For MT4 relies on the alignment of all indicators in the direction of the trend, along with confirmation from the QQE new histo alerts indicator, which comes via a midline cross.

It is important to state that not all the EMA arrow signals should be traded. As is typical of moving averages, the EMA crossover signal arrows will generate a lot of signals which are not reliable, and which require confirmation.

 

  1. Long entry

 

A long trade opportunity window opens when the following parameters are seen on the 4-hour chart:

 

    • The EMA Crossover Signal arrow shows a green colour under a price bar.

 

    • The Neuro Forex Strength Trend Predictor has painted the candlesticks green, indicating an uptrend situation.


    • QQE new histo alerts indicator shows green histogram bars. A green histogram bar that indicates a buy signal should ideally occur within the first 5 histogram bars or the signal will be considered as being too far gone and more prone to retracement.

 

When these conditions all align, the trader can go ahead to open a long position at the open of the next candle or bar that forms after the signal.

The chart below presents the buy trade setup for this strategy.


You can see that the two areas marked “invalid” are areas where the signals generated by the trend indicators did not get support from the momentum indicator because the histogram bars were either red or yellow. The only spot with a bullish signal had confirmation from the support-resistance indicator as well as the QQE new histo alerts indicator, which showed a green histogram bar as the 2nd bar that formed after the histogram went into the positive territory.

Stop Loss and Take Profit

The stop loss is set at a few pips below the entry point or a support line (if there is one). The Take Profit target is set using a prior resistance as the benchmark. Set the TP below this previous support. The stop loss value should be a third of the value of the TP in order to maintain a risk-reward ratio that is at least 1:3.

 

  1. Short entry

 

Here is what to look out for in order to be able to trade with this strategy on the short side of the equation:

 

    • The EMA Crossover Signal displays a red-coloured arrow under a price candle or bar.

 

    • The Neuro Forex Strength Trend Predictor has painted the candlesticks red, indicating that the asset is in a downtrend.


    • QQE new histo alerts indicator should show a red histogram bar that indicates a sell signal. This should ideally occur within the first 5 histogram bars to maintain the validity of the signal.

 

The chart below shows a short trade setup using the Neuro Forex Strength Trend Predictor Trading System For MT4.


You can see that the invalidated trades were trades that were not supported by confirmatory red histogram bars on the momentum indicator window. The valid signal was taken off a break of the support level once the red indicator bars appeared as the 3rd bar.

 

Stop Loss and Take Profit Settings

The SL is set above the entry price, with the TP set at a few pips above a previous support line. The ratio between the SL and TP should be at least 1:3, to maintain a good risk-reward target that guarantees profits at the end of the month even with a 40% win rate.

 

Conclusion

This strategy is not infallible and some common sense should also be applied. For instance, it may be necessary to allow a sell trade setup to show a picture where price breaks support (as in the short trade setup), or break a resistance before entry. Allow all candles where the signals are generated to close, and take trades at the open of the next candle.

Download the complete system description and the files here:

FREE Neuro Forex Strength Trend Predictor Trading System

Download the FREE Neuro Forex Strength Trend Predictor Trading System for MT4.

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