If you like the simplicity, we assure that you will immediately be interested in this strategy because it couldn’t be simpler. The Trend Your Friend is a “naked” trading system, which identifies trading opportunities through breakouts with robust momentum spotted in trending conditions. When looking at a trend, have you ever asked how prices would act in the near future? The answer is: prices will likely trade towards the current trend. When the last swing of the trend is broken with increasing volume, a breakout is present, and that trend is likely to extend. This strategy is based on that theory and helps you follow the strong movements in trends.
The Trend Your Friend is totally based on price action and the trend-trading theory, therefore, it completely requires no supportive indicators. This helps eliminate false signals very effective because the trading chart emerges so simply ahead of traders’ eyes.
After being tested over the last 12 months, we have so far confirmed the strategy’s win ratio at 86.44%. This strategy proves itself to be an all-purpose one as it could be used in any trading time frame and on any financial assets. False signals can appear sometimes; in order to reduce them, you should use candlestick trading knowledge alongside.
How to use the Trend Your Friend to trade binary options
Once the candlestick chart is opened up, you can start seeking signals using the Trend Your Friend
A call signal is defined when the following requirements are met:
• Prices are trending upwards.
• The last swing high is broken with strong bullish momentum.
Conversely, a put occasion is identified when the following conditions are satisfied:
• Prices are trending downwards.
• The last swing low is penetrated with strong bearish momentum.
Below are some important terms when trading with this strategy:
• Only one position should be entered at a time.
• The pump candle must be fully close before a trading occasion is confirmed valid.
• The order’s expiration should be set 4 times larger than the trading time frame. For example, you can set the finishing time in four hours when trading on the 1-hour chart.
Pros and cons of the Trend Your Friend
• All-purpose, active, and easy-to-use.
• Generates highly reliable signals.
• Enables traders to benefit from grand trends.
• Requires no additional indicators.
• Requires a high level of patience.
• Necessitates traders to eye the platform.
The fact is there is no trading theory which is more profitable than the trend-trading one. And, there is another fact: the simpler a trending strategy is, the more advantageous it is. The Trend Your Friend is an extremely simple trading system, and that’s why it’s preferred by professional traders. With lots of advantages and a very high win ratio, this strategy is a really good companion for trend lovers. However, don’t forget to use risk controlling and psychology managing methods when trading with any strategies, including the Trend Your Friend as there’s nothing called “100% win-rate” in the trading world.