As part of the review of free indicator trading strategies, we are going to analyze a new trading method called "Trend Runner" . The strategy is freely available, you can find its description yourself on the well-known English-speaking forum babypips.
For the first time on this site, it was announced in April 2013, after which users actively discussed it for a whole year. There are 611 pages, where users shared among themselves examples of transactions and screenshots, additions to this trading system and its various modifications.
Features of "Trend Runner"
The main difference of this trading system from other strategies is that it is designed for trading on long time frames (TF). The author himself traded with it on TF H4. His students and followers also traded on higher time periods, more often it was TF D1. It is necessary to warn you that this strategy is not suitable for intraday trading. Therefore, this article will hardly be of interest to those who like to trade within the day. The work of this method is based on the search for medium-term price fluctuations and trend search.
Rather, you will be interested in trading using our universal system "Sniper X", which the Forex Academy offers you to download for free. We will send you a basic training course for this trading system that works exclusively from levels. Without a single indicator, it will bring you good profits. Sniper X is a reliable and easy-to-use strategy that will give you excellent results on the first day of its application:
Now let's go back to the system we are studying and talk about the tools on which its work is based.
Tools TS "Trend Runner"
This method is based on four indicators, of which you can find only one in the terminal. You can download the other three tools along with the template at the end of the article.
So, the graphical tools for Trend Runner:
- “Moving Average” is a moving average or EMA with a period of “200” and two levels with values - “50” and “-50”.
- Barry is a tool that identifies and displays Resistance / Support levels based on fractals.
- Super Trend is an indicator that determines the general trend of the market. It is based on the average true ATR range. Its blue lines indicate a Bullish trend, while its red lines indicate a Bearish price movement.
- Signal Bars Daily is used as an auxiliary tool and is not an indicator for entering the market. It is not worth opening positions relying only on its signals. The main task of this indicator is to show the trader the strength of the currency instrument with which he works at different time frames.
Installing these indicators on a chart in MT4 is no different from installing any other indicators. After you download the archive, unpack it and place its files in your terminal folder. To quickly open it from the terminal itself, on the main toolbar of your terminal, select "File" → "Open Data Directory" .
Then we do the following:
- the files of the indicators themselves with the extension ".ex4" or ".mq4" place in the folder "MQL4" → "Indicators" ;
- place the template file with the extension ".tpl" in the "templates" directory .
After that, restart your terminal and after opening it, right-click on the background of the working window with the price chart. From the context menu, select successively the items "Template" → "Load template" → "TrendRunner.tpl":
It is clear that tools installed from a template do not need any customization - they are installed with all the properties they need. After installation, the ready-to-use tools for this strategy look like this:
As for the choice of a currency instrument, here your desires and preferences are not limited by anything. You can trade any currency pair, including gold and even exotic.
According to the “Trend Runner” rules, we trade with the recommended risk - no more than 2% per trade . Trading rules and indicator signals are not complicated, they are practically the same for buying and selling.
Entry with a buy on the breakout of the EMA
We watch the price movement and evaluate the signals received from the indicators:
- The price should break the curve of the Moving Average indicator from bottom to top and move in the same direction by 50 or more points.
- Signals from the Super Trend indicator confirm the direction of the trend, in this case an uptrend.
- The Barry indicator should show a well-formed and powerful Resistance level.
If all the signals described above are received, we enter the market by buying:
You can see that all the necessary signals from the indicators have been received, and we can open a buy position. Let me remind you that the lot size should not exceed 2% of your deposit. The Stop Loss to Take Profit level is 1: 3, respectively.
To lock in a part of the profit and secure yourself against possible loss, do not forget to transfer the deal to breakeven. To do this, simply move the Stop Loss to a new level formed in the course of price movement in the direction of the position we opened.
Enter with a sell on the breakout of the EMA
In this case, indicators should give us the following signals:
- The price breaks the “Moving Average” curve from top to bottom and then moves by 50 or more points.
- The Super Trend indicator confirms the current downtrend direction.
- The Barry indicator confirms the formed Support level.
All signals are received - open a sell position:
In fig. 4 you can see that the signals to enter on a sell are mirrored in relation to the signals to enter on a buy. All conditions for entering the market with a sell position are also met here.
We enter the market with a lot of no more than 2% of the deposit volume. We also set Stop Loss to Take Profit in a ratio of 1: 3.
Do not forget to play it safe and transfer the deal to Breakeven in time - we move the Stop Loss level to the nearest formed level in the direction of the price movement in our direction.
Entering the market on a rebound from the EMA and the continuation of the trend
Positions can be opened not only when the price breaks the “Moving Average” indicator curve, but also when the price rebounds from it. In this case, the conditions typical for entry with buy / sell at the breakout of the average must also be met. The only difference is that the price does not break through the EMA, but bounces off it, returning to the previous movement. Let's consider a similar situation using the example of a buy entry:
- The Moving Average curve is not broken, the price bounced off it.
- The Super Trend indicator confirms the continuation of the trend.
- The Barry indicator shows the formation of a new Support level.
Figure 5 shows that the price does not break through our EMA, but bounces off it, moving in the same upward trend. We are waiting for the price to go up 50 points and open a new buy position in the amount of 1 lot no more than 2% of the deposit.
Stop Loss is set behind the Support level. Take Profit, in a ratio to Stop equal to 3: 1, is set at the nearest Resistance level. Do not forget to move Stop Loss to the newly formed levels in order to minimize the risk on the deal.
My opinion on the Trend Runner method
I have been testing this system for six months. I would like to note that I was immediately struck by the large size of the Stops, on average - about 50-80 points. The number of deals on TF H4 is small. There are not so many input signals and inputs themselves as when using other vehicles. However, I note that their small number is compensated by quality. During the entire testing period, I opened only 9 trading positions , of which:
- 4 trades brought me profit;
- 3 deals were closed by breakeven;
- For 2 positions I was knocked out by Stop Loss.
I worked on only one currency pair, it was the American and Canadian dollars (USD / CAD), and was able to earn $ 400 on it. The profit, as a percentage of my deposit, was approximately 4% . I analyze the detailed test result in my video