Forex Factory is a popular online forum for forex traders where they can discuss strategies, share their experiences, and learn from other traders. The forum is home to a variety of trading systems that have been developed and tested by traders over the years. In this article, we will explore some of the best trading systems available on Forex Factory.
1. The Cowabunga System
The Cowabunga System, developed by the user Pip Surfer, is a simple and effective trend-following strategy. The system is based on the 4-hour chart and uses the 200 EMA (Exponential Moving Average) to determine the trend direction. When the price is above the 200 EMA, the trend is considered up, and when the price is below the 200 EMA, the trend is considered down.
The system uses a combination of two indicators, the Stochastic Oscillator and the Parabolic SAR, to generate trading signals. When the Stochastic Oscillator crosses above the 20 level and the Parabolic SAR dots are below the price, a long signal is generated. When the Stochastic Oscillator crosses below the 80 level and the Parabolic SAR dots are above the price, a short signal is generated.
2. The Bladerunner System
The Bladerunner System, developed by the user Bladerunner, is a price action strategy that uses the 20 EMA and the price action to determine the trend direction. The system is based on the 1-hour chart and is designed to trade the major currency pairs.
The system uses a combination of two indicators, the 20 EMA and the price action, to generate trading signals. When the price is above the 20 EMA, the trend is considered up, and when the price is below the 20 EMA, the trend is considered down. The system looks for price action signals such as pin bars, inside bars, and engulfing bars to enter the market.
3. The London Breakout System
The London Breakout System, developed by the user Mark Mc Donnell, is a simple and effective strategy that is designed to trade the London session. The system is based on the 1-hour chart and uses the Asian session range to determine the entry and exit levels.
The system looks for a narrow range during the Asian session and places pending orders at the high and low of the range. When the London session opens, the system will either trigger a long or short position depending on which order is filled. The system uses a stop loss and a profit target to manage the risk and reward of the trade.
4. The 3 Ducks Trading System
The 3 Ducks Trading System, developed by the user Captain Currency, is a trend-following strategy that uses three timeframes to determine the trend direction. The system is based on the 4-hour, 1-hour, and 5-minute charts and is designed to trade the major currency pairs.
The system uses a combination of three moving averages, the 60 SMA (Simple Moving Average) on the 4-hour chart, the 60 SMA on the 1-hour chart, and the 60 SMA on the 5-minute chart, to determine the trend direction. When all three moving averages are lined up in the same direction, the trend is considered strong, and the system will look for trading opportunities in that direction.
5. The Big Three Trading Strategy
The Big Three Trading Strategy, developed by the user Jarratt Davis, is a fundamental analysis strategy that uses economic data to determine the trend direction. The system is based on the daily chart and is designed to trade the major currency pairs.
The system looks for economic data releases such as GDP (Gross Domestic Product), CPI (Consumer Price Index), and Employment figures to determine the strength of the economy. When the economic data is better than expected, the currency is considered strong, and the system will look for trading opportunities in that currency. The system uses a combination of technical indicators, such as the MACD (Moving Average Convergence Divergence) and the RSI (Relative Strength Index), to confirm the entry and exit levels.
Conclusion
Forex Factory is home to a variety of trading systems that have been developed and tested by traders over the years. The systems listed above are some of the best trading systems available on Forex Factory. However, it is important to note that no trading system is perfect, and traders should always use proper risk management and trade with discipline.
