#5

Strategy #5: 5 Trend Deals / 5M TF

Learn Strategy 5's progressive trend-following setup on the five-minute chart, including confirmation, position limits, exits, and risk controls.

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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

5️⃣

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

Primary Best for: Upward trends
  1. 1 Center line crosses ABOVE 600 SMA
  2. 2 Wait for price BELOW center line
  3. 3 Enter 5 BUY positions
  4. 4 Manage exits at red levels

Bear Trend Entry

Primary Best for: Downward trends
  1. 1 Center line crosses BELOW 600 SMA
  2. 2 Wait for price ABOVE center line
  3. 3 Enter 5 SELL positions
  4. 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

Critical

📝 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)

Critical

📝 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

Critical

📝 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

High

📝 Rule #5: Final Position Management

Last deal is closed on trend change because sometimes trend can go on for +10,000 points easily

Critical

📝 Rule #6: Multi-TF Enhancement

Can be improved through multiple TF analysis, like using 1HR or 1D chart

High

🛠️ Setup & Configuration

✓ Required Features

📊

600 SMA

Simple Moving Average indicator

Tutorial
🛣️

Road with Center Line

Center line for crossover signals

Tutorial
💧

Liquidity Levels

Red/green exit targets

Tutorial

+ Recommended Features

📈

Multi-Timeframe

1H/1D trend confirmation

Tutorial
🧮

Position Calculator

Manage 5-position sizing

Tutorial

⚙ Timeframe Configurations

Medium

Standard 5M Setup

Analysis 5min
Entry 5min
600 SMA on 5min
Standard position sizing
Focus on major pairs
Clear trend conditions
Medium

Enhanced Multi-TF

Analysis 1H
Entry 5min
1H trend confirmation
5min precise entry
Stronger signals only
Higher conviction trades
Medium

Advanced Daily Bias

Analysis 1D
Entry 5min
Daily trend alignment
Major trend captures
Reduced frequency
Massive potential moves

✅ Entry Checklist

✅ Pre-Trade Checklist

❌ Avoid These Setups

Entering without discount prices
Trading against higher TF trend
Closing deal 5 too early
Not waiting for actual bounces
Poor position size management

📚 Complete Trading Guide

📈 Real Trading Examples

Massive Uptrend Capture

EURUSD bull trend on NFP

Center line crosses above 600 SMA, massive trend follows

Signal: Center crosses above SMA at 1.0800
Entry: Price dips to 1.0790 (below center)
5 BUY positions entered
Deals 1-4: Closed at red bounces (200 pips total)
Deal 5: Held to 1.1200 (4000 pips)
Result: 4200 pips total across 5 positions

Progressive Exit Management

GBPUSD downtrend with liquidity bounces

Perfect example of waiting between exits

5 SELL positions from 1.2500
Deal 1: Closed at 1.2450 green bounce
Price rallies to red, then back down
Deal 2: Closed at 1.2400 green bounce
Pattern continues for all positions
Result: Systematic profit-taking maximizes gains

⚠️ 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.

Use position sizing calculator for proper risk management
📊
SMA Period Adjustment

600 SMA works best, but test 500-800 range for your pairs.

EURUSD might prefer 650, GBPUSD 550
⚡
News Event Trends

Major news often triggers the biggest trends perfect for this strategy.

NFP, Central Bank decisions create 5000+ point moves
🔄
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?
The 600 period SMA on 5-minute chart represents 50 hours of price action, capturing major market shifts while filtering out noise. It’s extensively backtested for optimal trend identification.
Can I close Deal 5 early if I have good profit?
No. The whole strategy is designed around Deal 5 capturing massive moves. Deals 1-4 give you consistent profits, Deal 5 is for the home runs. Closing early defeats the purpose.
What if price doesn't give discount entry?
Skip the trade. Chasing entries without discount leads to poor risk/reward. There will always be another trend. Patience for proper entry is crucial.
How do I know when the trend has changed for Deal 5?
Look for center line crossing back through SMA in opposite direction, major structure break on higher timeframe, or clear momentum exhaustion patterns.

📚 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

The 600 SMA crossover is your edge - respect it religiously
Discount entries separate professionals from amateurs
Deal 5 is where millionaires are made - have patience
Trends run farther than you think - 10,000+ points is common

Author: Pyrem - US30/XAUUSD | Date: 23-Jun-21 4:58 PM

📖 How traders use this

Strategy guides from the blog that put Strategy #5: 5 Trend Deals / 5M TF to work on a live chart.

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