Trend Follower M5 System

"Trend Follower 5 minute system" is one of the first system I traded with. I discovered this system on forexfactory.com, but the original article is here. It's a trend following system that use a LaGuerre (a modified RSI), MACD and a EMA crossover signal to detect good entry, according with the trend. If you're interested, I suggest you to visit the dedicated thread on forexfactory to learn more about this strategy.

This system is published for free, even if his author say that the selling price for it is about 300$. But winning the forex markets depends 90% on the trader and the other 10% on the system.

Buy signals come when:

- Green emas are above Red emas.

- Laguerre cross 0.15 level and ahead to north.

- MACD is above 0.

- EMA 5/8 crossover signal

It is very important that all these signals are on the same single candle or two. Anyway entry signals are not so difficult to spot. Exists are more difficult to spot and you need maybe to manage your trades closing half of the trade on the first pivot point and run the other half until the slope direction line goes red.

I've made a lot of pips with this system but there are some reason to don't consider it a easy strategy. First of all, you need a lot of screentime and study to avoid false signals and there are no way to code an EA for this method, so you need to monitor 3,4,6 or more pairs for the whole session.

To avoid false signal, be sure to open a trade only when the trend is going in your way. If you want to pick only good signal, you have to look for a "breakout", usually on a S/R level.

My final thought: In my opinion TF is a good system, but it depends too much from indicators. Watching six charts 10 hrs a day finding only few signals a week is not a great deal. However the system can be profitable and it is a good system for beginner or even for exerts as a confirm's signal. Entry are easy to spot, it needs just some practice. But exits are much less easy.

My personal rate is: 8/10