Sardar Forex Trend Trading System - Learn How That Works

Author: Consultant Finmaxfx

Traders often wonder whether the current trend is going to continue and they should open more deals in the same direction, or will there be a consolidation and therefore, it would be better to use wait-and-see position. Sardar is of the trend following systems that works exactly with powerful trends, monitoring their momentum. Two of the three technical indicators used here show the movement direction while the third one identifies the strength of this particular trend. Thanks to this combination, Sardar simple trend following system generates signals for safe entry points.

What is Sardar Trading System

The effectiveness of this strategy is proven by the yearly result of impressive 2800 pips (four-digit quotes) of profit in 2018. The maximum drawdown did not exceed 100 pips though. The best currency pair to trade on using ‘Sardar’ forex trading strategy is EUR/USD and the timeframe is H1.

The combination of the technical indicators used for this system includes RVI with period 10, RSI with period 14 and Standard Deviation with period 20. All of them are placed on the bottom part of the chart, under the price.

The Relative Vigor Index (RVI) is a technical analysis indicator that measures the strength of a trend by comparing a security's closing price to its trading range and smoothing the results. It's based on the tendency for prices to close higher than they open in uptrends and to close lower than they open in downtrends.

How to use Sardar Trading System

Conditions for long positions according to Sardar simple trend following system are as follows:

  1. The main line of RVI indicator crosses its zero level from downside up;
  2. RSI indicator’s value on this candle has to be higher than previous or equal;
  3. Standard Deviation indicator has to grow or stay the same on this candle;
  4. If all of those conditions are in place, then we open a long position on the next candle opening;
  5. The stop-loss order has to be equal to 35 pips;
  6. After the price moves 30 pips in the right direction, the deal must be set to non-risk mode, thus, the stop-loss order must be removed above the entry point;
  7. The take-profit order is placed for 95 pips;
  8. If the opposite signal occurs, and the current position is in a profitable zone, then the previous deal must be set to non-risk mode;
  9. In case if the opposite signal appears when the current position is in negative territory, then the previous deal must be closed manually by the current market price.
  10. If the same-direction signal occurs while holding an open position, another entry is possible only with the condition that the current position is in profit.
    Sardar Forex Trend Trading System - Learn How That Works

    If you like this strategy, you might also be interested in this: London Breakout

    Conditions for short positions according to Sardar best trend following system are as follows:

    1. The main line of RVI indicator crosses its zero level from upside down;
    2. RSI indicator’s value on this candle has to be lower than previous or equal;
    3. Standard Deviation indicator has to decline or stay the same on this candle;
    4. If all of those conditions are in place, then we open a short position on the next candle opening;
    5. The stop-loss order has to be equal to 35 pips;
    6. After the price moves 30 pips in the right direction, the deal must be set to non-risk mode, thus, the stop-loss order must be removed above the entry point;
    7. The take-profit order is placed for 95 pips;
    8. If the opposite signal occurs, and the current position is in a profitable zone, then the previous deal must be set to non-risk mode.
    9. In case if the opposite signal appears when the current position is in negative territory, then the previous deal must be closed manually by the current market price;
    10. If the same-direction signal occurs while holding an open position, another entry is possible only with the condition that the current position is in profit.
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