Profitable Trend Forex System

 . Exit Signal and Stop Loss Placement
With each signal, we enter with three lots.
Stop loss is placed as the last swing high/low
If the trade goes in our favor, we exit 1 lot at the same distance as the
stop loss. For example, if our stop loss is place at -40 pips from the
entry price, we exit the first lot when we have +40 pips (excluding
spread) in profit. As soon as we take the first lot out, we move our
stop loss to break-even for the remaining two lots. The second lot is
taken out when HMA 5 changes its direction against us (that means in
an uptrend we exit the second lot when HMA 5 turns down). The third
lot is taken out when HMA 12 changes its direction against us (that
means in an uptrend we exit the third lot when HMA 12 turns down).

www.TrendForexSystem.com – All Rights Reserved - 2006

Profitable Trend Forex System

 Sell (Go Short): When price is trending down (as defined by our above
criteria), we look for a larger retracement than in L1 signal, and then
enter when the trend resumes. Price retraces and makes both HMA 5
and HMA 12 changes their direction from down to up. We enter when
both HMA 5 and HMA 12 changes their direction from up to down. It
signals that the price has resumed its established trend.

www.TrendForexSystem.com – All Rights Reserved - 2006

Profitable Trend Forex System

 .2. L2 signal
Buy (Go Long): When price is trending up (as defined by our above
criteria), we look for a larger retracement than in L1 signal, and then
enter when the trend resumes. Price retraces and makes both HMA 5
and HMA 12 changes their direction from up to down. We enter when
both HMA 5 and HMA 12 changes their direction from down to up. It
signals that the price has resumed its established trend.

www.TrendForexSystem.com – All Rights Reserved - 2006

Profitable Trend Forex System

Buy (Go Long): When price is trending up (as defined by our above
criteria), we look for a small stall or retracement, and then enter when
the trend resumes. Price retraces and makes HMA 5 changes its
direction from up to down. We enter when HMA 5 changes its direction
from down to up. It signals that the price has resumed its established
trend. During the entire retracement, however, HMA 12 direction is
still up (i.e. price only retraces a little bit, not enough for HMA 12 slope
to change). This is what distinguishes L1 signal from L2 signal.
Sell (Go Short): When price is trending down (as defined by our above
criteria), we look for a small stall or retracement, and then enter when
the trend resumes. Price retraces and makes HMA 5 changes its
direction from down to up. We enter when HMA 5 changes its direction
from up to down again. It signals that the price has resumed its
established trend. During the entire retracement, however, HMA 12
direction is still down (i.e. price only retraces a little bit, not enough
for HMA 12 slope to change). This is what distinguishes L1 signal from
L2 signal.

www.TrendForexSystem.com – All Rights Reserved - 2006

Profitable Trend Forex System

.3. Clarification
Why is it required that EMA 20 and EMA 30 are well separated from
each other? Because if they are close together, the market is probably
choppy and therefore whipsaws are likely to occur.
3. Entry signals
We have two types of entry signals, namely Level 1 (L1) signal and
Level 2 (L2) signal. They are described as follows:
3.1. L1 signal

www.TrendForexSystem.com – All Rights Reserved - 2006

Profitable Trend Forex System

 .2. Downtrend
The trend is regarded as down when long MACD has crossed down and
both EMA 20 and EMA 30 are pointing downward and the spread
between EMA 20 and EMA 30 is considerably large (the two EMAs are
well separated from each other).

www.TrendForexSystem.com – All Rights Reserved - 2006

Profitable Trend Forex System

. Components of the System
• Guppy Multiple Moving Average (GMMA) Slow Group (orange
color in my illustrated charts)
• Exponential Moving Average (EMA): EMA 20 (magenta) and EMA
30 (magenta)
• Hull Moving Average (HMA): HMA 5 (blue when pointing up, pink
when pointing down) and HMA 12 (green when pointing up,
purple when pointing down)
• Moving Average Convergence Divergence (MACD):
MACD (30,60,30) – we call it long MACD
All indicators for MetaTrader4 are included within the package you
have received. If you have any questions regarding how to install
indicators, drop me an email.
2. Trend Determination
2.1. Uptrend
The trend is regarded as up when long MACD has crossed up and both
EMA 20 and EMA 30 are pointing upward and the spread between EMA
20 and EMA 30 is considerably large (the two EMAs are well separated
from each other).

www.TrendForexSystem.com – All Rights Reserved - 2006