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Trend Follower FAQ

This is a follow-up to my previous post earn money with forex aka. Trend Follower 5 minute trading system. I have compiled a list of frequent questions and my answers.

Q: How do I install metatrader indicators?
A: Put the indicators in this folder (assuming your default C: installation and usual metatrader platform); You must off course unzip them.

c:\Program Files\MetaTrader\experts\indicators\

Put the template in this folder; Unzip this too.

c:\Program Files\MetaTrader\templates\

Q: Are the arrows on the chart just alerts for possible positions? Not the signals themselves?
A: Yes, the arrows are just alerts for possible positions. All the other criteria explained in the manual must be met before the trade is taken.

Q: How many pips does it make on average?
A: I can not answer this question because you alone are responsible how much you will make. One trader reported he made almost 1000 pips during a period of a little less than two weeks (8 trading days!). I have never made such a huge profit in such a short time. You can make more or less than me, based on market movements and how good you are as a trader.

Q: My indicators templates do not match yours!
A: Only download official files from my website. I don’t know where you got your files or templates from and the variables of them so I can not provide assistance.

Q: May I translate your system into a foreign language?
A: Yes, you may! But you have to ask me before you do that. The system in foreign language must include my name, copyright, a link to official forex factory trend follower discussion and a link to me:

Once you have translated and posted your translation to a website you must give me the direct link to the article and any other important information.

Q: Is there an official discussion on Trend Follower?
A: Yes, at forex factory forum I have posted additional information as well as some screen shots. You can chat with fellow traders using this system and share your experiences. Click here for a direct link to the thread.

Q: What are the variables for GUPPY MMA?
A: All exponential moving averages are based on price close and contain the following variables:

GOLD (2,3,4,5,6,7,8,9,10,11,12,13,14,15)
DARK ORANGE (17,19,21,23,25,27,29,31,33,35,37,39,41)
MEDIUM BLUE (44,47,50,53,56,59,62,65,68,71,74)
FOREST GREEN (78,82,86,90,94,98,102,106,110,114,118,122)
RED (125,130,135,140,145,150,155,160,165,170,175,180,185,190,195,200)

Q: How many orders does Trend Follower usually open per week?
A: Although this is a pretty relative question, you get about three valid signals a week per one pair on a five minute chart.

Q: Do you happen to have the system as an ExpertAdvisor for MT4?
A: An EA is being developed by fellow enthusiasts at the official trend follower thread in FF. However, it is not part of this official system and I do not
trade with it.

Q: How long have you been trading this system?
A: This system with little exeptions remains the same for almost a year and a half. Little exeptions are a MACD change from 9,18,9 to 5,35,5 and addition of the slope direction line. Today is August 2007.

Q: Can this system work with 30 minute charts and other intervals?
A: The saying goes “if it works on a 5 minute chart, chances are it should work on every time frame”. I only trade the 5 minute chart and do not know how well Trend Follower performs on higher time frames, but you can try it out for yourself on a demo account. A user reported successful trades on the 30 minute chart.

Q: Does the indicator use GMT as the closing time for Daily pivot point calculation?
A: It doesn’t really matter, since you use pivots for exits only on your judgment. (meaning, you can exit at the first pivot, second…)

Q: Can I turn off the sound alerts?
A: Yes. If you want to turn of the sound alerts right click on the signal arrows and choose the option to turn of the sound.

Q: I am waiting and waiting but I can’t seem to get a proper signal?
A: Please remember that sometimes you might not get even one signal per day even if you are trading 6 or more pairs at the same time as I do. Patience is needed as in any other system. It is better to take 2 perfect trades that will move your account balance higher, than 15 false trades.

Q: I don’t use Metatrader 4, can the system be exported into another charting package?
A: If your broker is using a different platform my advice is to use two platforms. Use MT4 to analyze the market and wait for the signal and then use your brokers platform to execute the trades.

Q: What broker do you recommend?
A: I recommend FOREX Yard Limited. You can start out with a super MINI account, a DEMO account or STANDART account. You can deposit money with credit card, western union or wire transfer. The spreads are tight and the customer support is great! What else do you need with a broker?

Q: Do we trade against the direction of the slope direction line?
A: Slope direction line is used for exits only, so yes we can enter a trade against it. It corresponds well with our black 34 EMA’s (black lines). Those measure volatility and you can see if it bounces back from those two lines, the trend will usually continue. Once slope direction line changes colors (at the same time the candle will probably close on the other side of 34 EMAS) we exit the trade. Or we Exit at pivots. Slope direction line is mainly used for orientation for what already happened on the chart. Candles and price movement can reveal you the same information.

Q: Do all the signals have to occur on the same bar? i.e. if the Laguerre crossed below 0.75 on the previous bar and the MACD goes negative on the current bar would you still take the trade (assuming the other signals also line up)?
A: As soon as we get the signal, many times Laguerre crossed the line already at this bar, we then are waiting for the close of this current bar and if the conditions are met, we immediately take the trade.

So based on this, we can enter the trade right after the signal (if conditions are met) or right after the close of the bar after the signal. Later NOT! To explain it better… If all the conditions are met:

a) At The SIGNAL BAR | WE TAKE THE TRADE
b) 1st BAR after SIGNAL (we have to wait for the close of that bar) | WE TAKE THE TRADE
c) if conditions are only met at 2nd BAR after SIGNAL or after (MACD only now crossed 0 or another indicator…)| We DO NOT TAKE THE TRADE

Again in other words:

We could also say that our entry is the first tick after the signal bar. We can not enter at the signal bar, because we have first to wait for the signal bar to occur.We than can enter right away at the next tick or we wait till the close of that tick for the conditions to meet, if they do meet, otherwise we don’t take the trade.

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27 Comments For This Post

  1. gunset Says:

    Nice FAQ!! man.. I wish a can mastering this system… thanks for sharing..

  2. JohnS0N Says:

    Practice and demo trade!

  3. Anonymous Says:

    JOHNSON, I JUST CAME ACROSS YOUR SYSTEM, HOW DO I DOWNLOAN META TRADER IS THERE A LINK THAT I AM NOT SEEING? I TRIED TO DOWNLOAD AND IT OPNED UP MY ACT PROGRAM AND THEN ACT SAID INVAILD FILE. PLEASE HELP.

  4. B Dedyal Says:

    Hello

    Great system. One point. See today’s (21st March)GBPJPY around 9 am trend reversed down. All indicators met criteria, except Guppy (at least I think). Could we have taken this short trade? Shame to have missed this large trend reversal.
    Your observation will be appreciated

    Regards

    B Dedyal

  5. JohnS0N Says:

    To b_dedyal ; The guppy is the most important factor in our system, so all the guppy lines must be in proper place, only then we take the trade.

    You could download a good demo metatrader at northfinance;

    http://www.northfinance.com/

  6. Felix Says:

    Hello
    Thanks for giving this EA for free. I am excited you have included Guppy to this system. You did a good job. Please keep us update with new versions. Thanks.

  7. julian millman Says:

    Thank you very much for this system. I dont know how well it will work out for me but am giving it a good go. 3 entries today all long (wednesday) but unfortunately when u s opened about 1pm my time it was bad news and they all tumbled short for a loss, but only small as i recognised what was happening and bailed out pretty sharpish. In your experience, if you get a signal and every indicator is right, say about an hour before the u s market opens, would you still take this trade? Only reason i ask is because in my experience alot of the time the market reverses as this point.
    Many thanks for your help and happy trading.
    Regards,
    Julian.

  8. ajewole Says:

    Thank you Mr Johnson. It is my first time here.I HAVE JUST READ THROUGH.And will still go through.God bless your generation to come.

  9. admin Says:

    @julian – Yes, you can enter at this point if you see a strong signal. Generally you wouldn’t, but if all indicators are confirming a strong signal you could disregard the usual trading time and still take the trade.

    @ayewole – May the system serve you well for as long as you need it.

  10. Philip Says:

    Can u get me the formula for the SLOPE DIRECTION. I want to try it on another platform. Your system is an eye opener.
    Thanks

  11. admin Says:

    Hello Philip,

    download the system and mt4 platform and look it up.

  12. Nendo Says:

    i know you must have gotten all the “thank you”s. but i must add mine. Thank you for sharing such an excellent system.

  13. Bryan Says:

    Just to let the others know they system works very well on a 1 hour chart, it more acurate than the 30m it takes a while to see the pips but it grabs 25 to 50 on 1st and second resistance. Works great!

  14. CeeFar Says:

    What a great system you have devised. Thank you very much for sharing.

    I have searched a lot of forums but I still cannot find an explanation on the signaltrendfollower EA for its parameters in the properties. I know the EA is not actually your baby but rather the indicators and system but I don’t suppose you would have a link somewhere that would explain these parameters?

    Thanks in advance.

  15. Aagii Says:

    YOu’ve suggested Forexyard as good broker. But their trading platform is very different than Metatrader4. There is no such folders like experts\indicators and templates. How to install the indicators and the template here? Please, advice!

  16. admin Says:

    You’ve got to have two platforms open. One for the analysis (MT4) and the other one for forex yard limited.

    Alternatively you can choose North Finance which has the mt4 platform as a standard.

  17. Patrick Tobin Says:

    Dear Admin,

    You have achieved a wonderful piece of work. I also trade stocks and use a different platform. Is there some way you can send me the plain language version of the system. I use Amibroker and would like to use your system with the Amibroker.

    warm regards,

    Patrick

  18. admin Says:

    You can find out all the indicators algorithms by downloading the metatrader platform and trendfollower template + indicators. But I advise you to rather use the original metatrader to analyze the market and only use your amibroker to execute trades.

  19. Sofiane Says:

    Hello. Thank you for your help. Today is May 11th 2009. I was wondering if there were any adjustments to make?

  20. Francis Says:

    Dear admin,
    Thank you for sharing this system, I am new at forex, and would very much like to learn.
    I have download your guppy lines from your website, but I found the colours are not the same, mine is gold,blue,green red, and purple, while
    yours is yellow,orange,blue,green and red, I am asking this is because I am a bit confuse, with the explation of colours, of when to go in or not, like you said red must be above green and green must be above red, for trade long/short.

    Thank you.

    Francis

  21. Carolyn Says:

    Thank you. Just a little question, I have saved in my indicators where you said, however, I can’t seem to load them up to my metatrader (which I have by the way) I can load the template, why can’t I do the indicators? Please help. You can e-mail me if it is ok.

    Thanks again for a wonderful system

  22. jaguarxj1 Says:

    10+ !

  23. Myo Says:

    Hi,
    I am also having same problem Carolyn, I have placed the indicators under EA folder of MT4, and can see them in the EA window too. However, could not able to load or attached those mp4 file to the chart, but able to open only template. How to solve out that problem to be able to trade? Any one please help me!!

    very much appreciated! Well done!

    Myo.

  24. KP Says:

    Hello, I have a question very much similar to the last Question asked here which is related to Laguerre. Most of the time when the signal occurs Laguerre has already been on the other side, we hesitate as the rule says only enter when Laguerre has just crossed the 0.15 mark from and moving upwards and 0.75 from the top and going downwards for short, but with so many trends that occurs and are profitable cant be entered. So in brief would like to know if there is any modification to the rule or we should stick to the rules. I am more than happy with 3 signals per week or even lesser but would like to know if Laguerre can be modified.
    Thanking you all
    KP

  25. Jaydheshkumar Says:

    Hi, I just found ur system & started down loading & trading for the last 2 hrs. I must say it works on 5Mt quite well. Only 1 loss trade against 14 winners. what more do trader want? Actually I hadn’t even read ur way of trading, I just opened trades when I got the alert & kept just 5 pips TP & 30 pips SL. Thats it. Only now OI read ur Way of using ur system. Just think if I won 14 against 1, without even knowing how it acatually has to used, I dont think I can loose even 1 trade if I stick to ur rule. How is this sytem on higher time frames. Anyway it looks really great!!!!!! hats off to u, for giving it free.

  26. s1quash Says:

    hi there..i gave it a go just now and it worked great..hoewever i did’t follow the rules at all..admin i will let you know my result once i trade it live for at least two months…btw, i will be trading live for the very first time next week..pray for me.. :)

    Thanks for a great system..

  27. Mark Ng Says:

    Hi,

    I have just downloaded your indicators & template, and took a quick look, I am really ‘wow’.
    looking back, those whipsaw losses are very neligible to the potential profit the indicators generate, *thumbs up*.

    I recently read this book ‘Trend Following’ and did a search on the internet, and it actually took me quite awhile to reach this site, are you guys somehow related?

    Question, is there anyway I can automated this trading system?

    Thank you & Best Regards,

    Mark Ng.

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