SRS Trend Rider is a trend following forex trading strategy. It is a very simple trading strategy yet very powerful. In general all the trend following systems are good because the concept of trend following is a good thing itself. Trend following traders have less chance of failure in compared to those counter trend traders. Trend following systems with few moving averages and the filtering tool at the bottom are always the best of its kind. Trend following systems need not to be complicated, even the simplest systems can make money if you trade well with them. Traders should not have misconception that trading system alone can bring you success in trading life. Unfortunately, it is not only the system that will make money for you but it is your trading habits and your level of self discipline that will make you successful in trading. And following an improper trading style with discipline also won’t bring any success. These both are the two sides of the same coin.
Let’s get back to the system. This system consists of only four technical indicators. The signals generated by the SRS Trend Rider System are heavily depended upon these three moving averages. The Srs Trend rider indicator at the bottom of the chart is used only for the confirmation purpose. When the SRS Trend Rider System is correctly installed on your trading platform your chart should look like this:
- Exponential Moving Averages: Exponential moving averages are the customized form of the simple moving averages. Simple moving averages focus on all the data uniformly while the exponential moving average focuses on the recent data. So generally Exponential moving averages will be faster than the simple moving averages and they are more sensitive to the price movement. In this forex trading strategy there are three exponential moving averages used.
- 14 EMA: It is Green in color.
- 6 EMA: It is blue in color.
- 4 EMA: It is red in color.
- SRS Trend Rider Indicator: This is a custom built technical tool which consists of stars like figures on the indicator window. It moves in the range between 0 to 20000 where 10000 is considered as a midline.
Buying Conditions Using SRS Trend Rider System.
- 4 EMA (Red0 should cross above all the other exponential moving averages. i.e. red EMA should be on the top.
- SRS Trend Rider Indicator should be above the 10000 level.
- Place your stop just below the recent swing low.
- You should take profit when the SRS Trend Rider touches the midline of 10000 for the second time.
Selling Conditions Using SRS Trend Rider System.
- 4 EMA (Red0 should cross below all the other exponential moving averages. i.e. red EMA should be at the bottom.
- SRS Trend Rider Indicator should be below the 10000 level.
- Place your stop just above the recent swing high.
- You should take profit when the SRS Trend Rider touches the midline of 10000 for the second time.
Open demo account to test this system.
Download Free Forex SRS Trend Rider