80# WarLord Trading System
Follow the Trend
Time Frame H1
We are going to use 4 metatrader indicators with this system, they are easy and clear in their signals and you will not have any problem in understanding how they work.
the first Indicator is called ‘’Trend’’ indicator,and as the name suggests it will show you the direction of the current trend.
The Second indicators is called the ‘’bars’’ indicator. This indicator will colour the candle stick with ( blue = up trend ) and ( red = down trend ) colours with arrows to give us a clear entry points. This indicator will also show us the entry price.
The third indicator ( they are two indicators actually ) are WPR Fast and WPR Slow indicators.
When both indicators show the same signal ( Blue bar = Up Trend ) and ( Red bar = Down Trend ) then we simply follow.
Example ( Up Trend ) (down trend)
Please note that both indicators must show the same signal ( bar colour ).
Golden rule 1: Always Follow the Trend
When the trend indicator shows a clear up trend, buy only. When the trend indicator shows a clear down trend, sell only. And when the trend indicator shows a sideways market or a flat trend, don’t trade.
Golden rule 2: When in doubt, Stay out!
That means, if you are not sure of the direction of the trend. Close the chart and move to another currency pair. This is real money we are dealing with and you should never enter a trade based on guessing or prediction.
Golden rule 3: Always keep an eye on the news
When there is an important news release the market would go against all technical analysis rules with no problem at all. In few minutes, you would see miracles happening before your eyes and all that you would think of is : ‘’WHY’’ and ‘’HOW’’ or ‘’THAT’S NOT SUPPOSED TO HAPPEN!!’’ .. while watching the market going against you and turning your winning trade into a disaster. You don’t want that, believe me.
Golden rule 4: Exit only when the price hits your target or stop loss
Never plan your trade AFTER you enter the market. Always plan your trades BEFORE you enter the market. When a trade is closed with a loss, study it and figure out why it was a losing trade. Ask yourself: was a bad signal? ( no system is 100% perfect ) was it the news? ( go back to rule # 3 ) Can’t find a reason? ( it’s ok, you can’t know everything. The market would act crazy without any reason at all. )
Before you enter the market, go through every part of the system and take your time. Better be safe than sorry.
Golden rule 5: Money Management
Always follow money management. Never trade with money you can’t afford to lose. And never risk more than 3% of your invested capital in any trade. When you calculate your risk, take into account: your Stoploss vs your target – the lot size vs your capital.
1 – Look for a clear trend
If you spot a flat trend, close the chart and stop trading today. Or just move to another currency pair.
2 – Look for a signal from all 3 indicators : Bars + WPR fast + WPR slow
Blue lines = Up trend Red lines = down trend
Example ( down trend )
3 – Always buy below or within the trend line, and always sell above or within the trend line.
Example ( Sell Areas )
Never buy above the trend line and never sell below the trend line.
The trend line is the three lines of the trend indicator. Blue, yellow and red.
4 – The stop loss for buy signals, is the last bottom of the last wave. The stop loss for sell signals, is the last top of the last wave.
Example ( Sell signals – Stop loss )
Example ( Buy signals – Stop loss )
5 – For buy signals, take profit anywhere below the trend line. For sell signals, take profit anywhere above trend line.
As long as the trend is still in the same direction, you can close a trade and open another one in the direction of the current trend.
You can close your trade when the bar indicator + WRP indicators generate opposite signal. Or stay with the trend if it’s strong enough ( going up/down in a strong steady angle ).
6 – Always wait for the bar to close before you open a trade. Don’t open a trade based on a signals given by bars or lines from any indicator while they are still in formation ( example: if the candle didn’t close yet )
7 – you don’t have to wait for an arrow to appear. If the trend lasts for few days, you can re-enter the market anytime if the trend is still strong enough and the bars and lines form all 3 indicators are of the same colour.
8 – the trend indicator may look like changing its direction, example:
That’s normal. Because it calculates the last 5 bars. There is nothing to worry about, the indicator is only forming the new direction based on the last 5 bars. But it doesn’t repaint itself.
One last thing, don’t play with the settings for each indicator if you don’t know what you are doing! Price was going in up trend, not strong but clear up trend. I ignored all sell signals, and waited for a buy signal.
For example, if your target was 100 pips, and you set your main stop loss level 50 pips behind entry level. And you set a 30 pips trailing stop .. when the price moves more than 30 pips in the direction of the trade, your main stop loss level will also move.
So let’s say that price moved 50 pips in the direction of the trade. That means price is now 50 pips away from your target.
That also means that your stop loss level is not 100 pips ( 50 pips way from entry + 50 pips price movement ). Instead, it would only be 20 pips away from entry point.
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