Speed Runner Forex Trading Strategy

You can now download the Speed Runner Forex Trading Strategy for free on AtoZ Markets indicators gallery.

Speed Runner Forex Trading Strategy is a trend continuation type of strategy that should be taken exclusively in a trending market environment. Although the market trends only 20% of the time, because day trading is done on the lower timeframes, odds are that there will be smaller trends that could be traded within the day. Although this doesn’t happen every day, trends do occur more often than not in a single day.

To trade a trend continuation entry, we will be making use of three fast Exponential Moving Averages (EMA) – 10, 15 and 20-period EMAs. On a trending market environment, these three EMAs will be stacked and relatively fanned out and will have more slope, while on a ranging market environment, these EMAs will more constrict and flat.

We will then try to eyeball the chart if the market is indeed in a trending market environment. If so, then we will be using the area between the 10 and 15-period EMA as an area where we will anticipate retracements. We will wait for the price to come back in between the EMAs, then close back outside the EMAs on the side of the 10-period EMA, signaling that it is resuming the trend.

Indicators:

10-period EMA (Green)
15-period EMA (Brown)
20-period EMA (Magenta)

Timeframe: 5-minute chart

Currency Pairs: EURUSD, GBPUSD, EURJPY, GBPJPY, and EURGBP

Trading Session: London Session

How to trade with Speed Runner Forex Trading Strategy?

Buy (Long) Trade Setup Rules

Entry:

The EMAs should be stacked in the following order:
- 10 EMA: top
- 15 EMA: middle
- 20 EMA: bottom
Price should come from above the 3 EMAs
Wait for price to retrace in between the 10 & 15-period EMA
After retracing between the EMAs, wait for the price to close back above the 10 EMA
Enter a buy market order at the close of the candle

Stop Loss

Set the stop loss a few pips below the entry candle

Take Profit

Set the take profit target at 2x the risk on the stop loss

Sell (Short) Trade Setup Rules

Entry:

The EMAs should be stacked in the following order:
- 20 EMA: top
- 15 EMA: middle
- 10 EMA: bottom
Price should come from below the 3 EMAs
Wait for price to retrace in between the 10 & 15-period EMA
After retracing between the EMAs, wait for the price to close back below the 10 EMA
Enter a sell market order at the close of the candle

Trade EURUSD with eToro

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Stop Loss

Set the stop loss a few pips above the entry candle

Take Profit

Set the take profit target at 2x the risk on the stop loss

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

Click on the “Download Indicator” button located at the bottom of the screen.
Save the file to your computer.
Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
Restart your Metatrader platform.
Navigate to “Indicators.”
And select the “Speed Runner Forex Trading Strategy” template to apply it on the chart.

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