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.
Put the template in this folder; Unzip this too.
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:
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)
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.