› Moxo Trend Following Strategy - How It Works

Moxo Trend Following Strategy - How It Works

Invented and published in 2015 by a professional trader, technical trend-seeking system Moxo has quickly become popular thanks to its efficiency in defining strong trending conditions and highly accurate signals.
This article will show you how to use this system to make profits from binary options trading.

What is a Moxo Trend Following Strategy?


Like every trending strategy, the Moxo uses both leading and lagging indicators to identify tradable trends and trading opportunities.
Fractal - a well-developed indicator whose main function is to determine reversal points in the market – works as a lagging beacon in this technical system, helping spot entries.
Meanwhile, Moving Average Convergence Divergence (MACD), a very famous leading guide developed by legendary trader Gerald Appel, has a responsibility to confirm the reliability of the detected trading occasions.
Besides, a Momentum indicator is also added to confirm whether the market is gathering momentum or not, enabling traders to avoid false signals more effectively.

The detailed setting of this technical system is as follows:
  • Default Fractals;
  • MACD with parameters 12,26,9;
  • 14-period Momentum with an added level of 100.

As these three indicators are very combinative, the system is really a good trend detector.
We have tested the Moxo since December 2016, and have achieved a very good testing result.
The win-rate is confirmed at 80%. There are around 25 trading signals identified per month, therefore, this strategy is suitable for mid-term and long-term traders.

How to use the Moxo Trend Following Strategy?


According to the testing result, the Moxo works best on the 1-hour chart, and can be applied to any financial assets, including currency pairs, indices, shares, commodities and cryptocurrencies.

A call opportunity is confirmed when:
  • The MACD trades above the zero level;
  • The Momentum indicator turns above 100.

When a call signal is present, you have to wait to enter a buying order around the nearest bullish fractal.

If you like this strategy, you might also be interested in this Hanging Man candle
Moxo Trend Following Strategy - How It Works

Conversely, a put occasion is determined when:
  • The MACD trades below the zero level;
  • The Momentum indicator remains above 100.

When a put signal is defined, you must watch to open a selling position around the nearest bearish fractal.

Moxo Trend Following Strategy - How It Works

Below are some significant entering rules when trading with the system:
  • Only one position should be opened at a time;
  • The pump candlestick must be fully close to confirm a signal valid;
  • The order’s expiry time should be set five times larger than the trading time frame.

For example, you can set the finishing time to be five hours when trading on the one-hour chart.

Pros and cons


Pros:
  • Flexible, easy-to-use, all-purpose;
  • Requiring no custom indicators;
  • Generating highly reliable trading opportunities;
  • Enabling traders to earn a series of profits in long trends.

Cons:

  • Requiring a high level of patience;
  • Necessitating traders to constantly watch the trading platform to seek for signals.

Conclusion


The Moxo strategy is a very effective trend trading technique, helping binary options traders to grab highly accurate signals from market trends. Its high win-rate of 80% in addition to the big advantages mentioned above rank it among the most profitable trending strategies, and we believe that sticking to this tool systematically can make you steadfast profits in the long-term.
Anyhow, always remember to use risk controlling & psychology managing methods when trading as they are indispensable tools in your trading career.


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