Capital
$2000+
Duration
1-4h+
Timeframes
5M+HTF
Risk/Reward
Variable
Type
Trend Following
Difficulty
advanced
About This Strategy
Advanced trend-following system using 5 progressive positions to maximize profit from extended trends. This strategy captures massive moves by combining quick profit-taking on initial positions with holding the final position for the full trend duration.
The strategy excels in strong trending markets by using the 600 SMA crossover with the road’s center line as a major trend signal. With proper position management, traders can capture both consistent quick profits and occasional massive 10,000+ point trends.
🎯 Key Principles
SMA Crossover Signal
Center line crossing 600 SMA indicates major trend
Discount Entry
Enter at favorable prices relative to center line
5-Position System
Progressive profit-taking with trend-following final position
Liquidity Bounces
Exit on confirmed bounces from liquidity levels
⚙️ How This Strategy Works
🔍 Trading Approach
Trend Identification
600 SMA crossover system
- ✓ Center line crosses 600 SMA
- ✓ Major trend beginning signal
- ✓ 5-minute timeframe focus
Discount Entry Logic
Optimal entry positioning
- ✓ Buy: Price below center line
- ✓ Sell: Price above center line
- ✓ Better risk/reward entries
Progressive Exits
5-deal management
- ✓ Deals 1-4: Quick profits
- ✓ Deal 5: Full trend capture
- ✓ Systematic profit-taking
Multi-TF Enhancement
Higher timeframe confirmation
- ✓ 1H/1D trend alignment
- ✓ Stronger signal validation
- ✓ Avoid counter-trend trades
📊 Entry Methods
Bull Trend Entry
- 1 Center line crosses ABOVE 600 SMA
- 2 Wait for price BELOW center line
- 3 Enter 5 BUY positions
- 4 Manage exits at red levels
Bear Trend Entry
- 1 Center line crosses BELOW 600 SMA
- 2 Wait for price ABOVE center line
- 3 Enter 5 SELL positions
- 4 Manage exits at green levels
🎯 Exit Strategy
Deals 1-4: Liquidity Bounces
Progressive profit-taking
- • Exit when price hits & bounces from level
- • Red levels for uptrend
- • Green levels for downtrend
- • Wait for opposite level between exits
Deal 5: Trend Completion
Full trend capture
- • Hold until trend change
- • Can run 10,000+ points
- • Maximum profit potential
📋 Core Trading Rules
📝 Rule #1: 600 SMA Setup
Enable 600SMA (Simple Moving Average) on 5min chart, and look for the center line of the road to cross the SMA
📝 Rule #2: Discount Entry Requirement
Look for price to be on a discount to enter (should be above center line for downcross and below center line for upcross)
📝 Rule #3: 5-Deal System
Take 5 deals, close each one once price hits & exits liquidity levels (red for uptrend, green for downtrend) and bounces back
📝 Rule #4: Progressive Exit Pattern
If you close first deal, wait for price to hit opposite level and comeback to close 2nd and so on
📝 Rule #5: Final Position Management
Last deal is closed on trend change because sometimes trend can go on for +10,000 points easily
📝 Rule #6: Multi-TF Enhancement
Can be improved through multiple TF analysis, like using 1HR or 1D chart
🛠️ Setup & Configuration
✓ Required Features
+ Recommended Features
⚙ Timeframe Configurations
Standard 5M Setup
Enhanced Multi-TF
Advanced Daily Bias
✅ Entry Checklist
✅ Pre-Trade Checklist
❌ Avoid These Setups
📚 Complete Trading Guide
📈 Real Trading Examples
Massive Uptrend Capture
EURUSD bull trend on NFP
Center line crosses above 600 SMA, massive trend follows
Progressive Exit Management
GBPUSD downtrend with liquidity bounces
Perfect example of waiting between exits
⚠️ Common Mistakes to Avoid
❌ Entering Without Discount
Poor risk/reward, likely to hit stops
✅ Solution: Always wait for price to be on favorable side of center line
❌ Closing on Touch vs Bounce
Premature exits reduce profits
✅ Solution: Wait for clear bounce confirmation from liquidity levels
❌ Early Exit on Deal 5
Missing massive trend potential
✅ Solution: Hold until clear trend change signal, trends run far
❌ Over-leveraging 5 Positions
Too much risk if wrong
✅ Solution: Size positions so total risk is manageable
💡 Advanced Tips
Optimal Position Sizing
Risk small amount per position to survive drawdowns while maximizing gains.
SMA Period Adjustment
600 SMA works best, but test 500-800 range for your pairs.
News Event Trends
Major news often triggers the biggest trends perfect for this strategy.
Partial Position Scaling
Can enter 2-3 positions first, add more on confirmation.
🚀 Performance Optimization
Entry Timing
- ▸ Best entries during active sessions
- ▸ Avoid ranging/choppy conditions
- ▸ Look for clean SMA crosses
Exit Discipline
- ▸ Mark liquidity levels clearly
- ▸ Set alerts for bounce zones
- ▸ Journal which deals close where
Trend Selection
- ▸ Focus on major pairs for liquidity
- ▸ Check daily bias before entering
- ▸ Avoid Friday afternoon trends
❓ Frequently Asked Questions
Why 600 SMA specifically?
Can I close Deal 5 early if I have good profit?
What if price doesn't give discount entry?
How do I know when the trend has changed for Deal 5?
📚 Learning Path
Step 1: Master the Crossover
- Practice identifying center/SMA crosses
- Understand discount entry concept
- Study historical trend examples
Step 2: Position Management
- Demo trade single positions first
- Practice 5-position management
- Track exit patterns and results
Step 3: Advanced Implementation
- Add multi-timeframe confirmation
- Optimize position sizing
- Build patience for Deal 5 trends
💡 Pro Tips
Author: Pyrem - US30/XAUUSD | Date: 23-Jun-21 4:58 PM
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