Trend Following

A trend is simply a tendency, a market movement direction, and is considered as one of the most essential concepts in technical analysis. Any technical analysis tool used by an analyst has only one purpose, which is to help to identify the market trend. The Forex trend meaning is very much similar to its general meaning - just the direction in which the market moves. But the difference is that the foreign exchange market not like other markets, it moves in a characterized way by series of zigzags, like successive waves that have clear peaks and troughs or as they are often called highs and lows.

Trend trading is one of the oldest classic trading strategies and is now taking its rightful. Its strong logic suggests it keep its relevance among traders around the world in the future. It has three main very logical strong but simple principles:

  • Buy when the market goes up (uptrend/bullish trend).
  • Sell when the market goes down (downtrend/bearish trend).
  • Take no action, see and wait when the market moves horizontally, not up nor down (sideways trend/consolidation).

The trend following strategy application is compatible with trades on various timeframes, but medium and long-term trading has the highest rate of protection accuracy and lowest risk value, where the long-lasting trends are considered strong ones. Swing and position traders whose trading depends on predicting the future market movement direction would greatly prefer using trend trading. Also, scalpers and day traders catch trends, but more precisely in weaker and very short-lived ones, a form of fluctuations within the main big trend.

Last Reviewed On:
Fri, 5 Jun 2015
Cyrus EA core strategy is the trend detection, it does not apply any grid trading, martingale trading or hedging at all.
Visit Cyrus EA Website
4.43/5
16 total votes.
Last Reviewed On:
Fri, 27 Mar 2015
A reversal trend trader that employs a well configured group of reliable indicators to predict the exact time of the trend impending death, momentum loss and the cutting edge of a new direction of that trend.
The next step before starting a trade is to compare such an opportunity to price action for verification, this confirms an impending reversal of the trend direction.
Then the trade entry becomes so favorable and that trade is highly promising and the system puts an order.
Visit Forex Venture Bot Website
4.88/5
17 total votes.
Last Reviewed On:
Sat, 7 Feb 2015
By measuring market volatility and oscillation, accounting trends and tracking price action, the robot can use the resulting data and combine it perfectly with its settings and built in indicators as CCI, Moving Averages, WPR, and others to wipe out the majority of harmful and bad signals, what finally results in being a huge win rate system.
Vortex Trader PRO uses a MySQL database to broadcast trading signals, it trades around the clock as was proved by its live performance statements with an average win of 11 pips and average loss of 21 pips.
Visit Vortex Trader PRO Website
4.36/5
47 total votes.
Last Reviewed On:
Fri, 12 Sep 2014
A super simple twist on Keltner Channels; a tool used to identify reversals with channel breakouts and channel direction and can also be used for identifying overbought and oversold levels from another strategy that was previously created. This idea is based on a book called "How to Make Money in Commodities", by Chester Keltner. KeltnerPRO is entirely automated.
It trades using baskets with a limited amount of trades achieving good profit on average 30+ pips, the positions are entered at the bar open with dynamic StopLoss and TakeProfit values.
Visit KeltnerPRO Website
4.72/5
221 total votes.
Last Reviewed On:
Mon, 20 Jan 2014

A trend EA as its name suggests, Forex Growth Bot takes the trader term "cut your losses short, let your profits run" actually earnest. As it trades only the EURUSD on M15 and it's not such a feature-rich software, this review will probably be shorter than my other reviews.

Visit Forex Growth Bot Website
4.78/5
602 total votes.
Last Reviewed On:
Sat, 14 Dec 2013
A scalping robot on trend pullbacks, resembling WallStreet Forex Robot. While its TP is set at 35 pips from the entry, it prefers to close most of the trades at 2-4 pips in profit and rarely keeps a trade running its full course. Its SL is set at 70 pips
Visit Joker EA Website
4.7/5
764 total votes.
Last Reviewed On:
Sat, 9 Nov 2013
Iris Fx is mostly trend-following by using a trailing stop and entries limit orders
Visit Iris Fx Website
4.69/5
334 total votes.
Last Reviewed On:
Sat, 2 Nov 2013
Forex Invest Bot opens multiple trades according to volatility with a fixed lot size trying to capture trend movements; it is the upgraded version of Forex Growth Bot with a similar trading style except for the more trades that might be opened by the Forex Invest Bot - it could exceed 20 simultaneous trades - and the improved entry & exit system being used.
Visit Forex Invest Bot Website
4.8/5
564 total votes.

Risk

Forex trading can involve the risk of loss beyond your initial deposit. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

Forex accounts typically offer various degrees of leverage and their elevated profit potential is counterbalanced by an equally high level of risk. You should never risk more than you are prepared to lose and you should carefully take into consideration your trading experience.

Past performance and simulated results are not necessarily indicative of future performance. All the content on this site represents the sole opinion of the author and does not constitute an express recommendation to purchase any of the products described in its pages.