This trading system was developed in the year 2013 making it one of the most resent systems in the market. The system uses one indicator to give signals of whether to sell or to buy. This is the Auto Trend Forecast indicator that is displayed on a chart below the trading chart.
Customizing the settings of the Auto Trend Forecast indicator
The indicator comes with its custom settings like the color changes which is usually between blue and orange. The main changes that one can do to it while customizing it is changing these colors.
You just have to double click on the indicator, then form the custom indicator dialog box that appears, click the colors tab. Then double click on the color columns given and then click on the drop down arrow that appears and choose the color that you want to use.
Fig. what the colors to be customized stands for
However be careful to not which color you have set where so that you may not confuse the signals. The color in the # 0 is for buy signal while that in the # 1 is for sell signal.
When to sell:
The trader is supposed to place a sell order when the Auto Trend Forecast indicator changes its color from blue to orange or the color that you have configured in the # 1 of the colors section of the custom indicator dialog box.
When to buy:
The trader is supposed to open buy positon when the Auto Trend Forecast indicator turns from orange to blue.
Placing the stops
Once you have placed your trades you don’t have to stay there and watch the market. No.
You can either opt to place your stop loss at the popup alert number that appears or at the previous low for the long trades and previous highs for short trades. But you have to identify the highs carefully and also ensure that the funds in your account can sustain the dropdown or loss to those stop losses. If not the put the stop loss at a level convenient for you and also use the right lots when opening the orders.
At the same time, place your take profits at a reasonable levels.
However if you are the kind of the trader that watches the market 24/7 then you can exit your trades when the Auto Trend Forecast indicator gives an opposite signal from the one you were trading on. For example if you had sold due to the indicator turning orange then when the indicator turns blue you ought to close your trades and exit the market.
But it is worth noting that if you look at the above chart, sometimes the indicator turns its color too late and the trade if it was to be closed manually would be a loss. Therefore it is always good to use the take profits and stop loss.
For example if in the above chart a take profit was placed at a reasonable level then the trader would close with some good profit.
Download Free Auto Trend Forecast Trading System