LMT Forex Formula Trading System

Trading Systems

Introduction to the LMT Forex Formula Trading System

The LMT Forex Formula Trading System is a forex trading strategy to use in conjunction with candlestick patterns. There are two main elements of the system: a Moving Average and an oscillator called the Trigger. To decide on a trade, you will need to analyze candlestick formations, and check signals provided by the indicators.

The LMT Forex Formula Trading System fits all kinds of timeframes (authors suggest 4H and Daily) and currency pairs. It is displayed both directly on the main trading chart and in the separate window placed just below it. The default settings are good but can be modified. Feel free to experiment with the settings and parameters to fit your personal preferences.

How to trade with the LMT Forex Formula Trading System?

The most important indicator is the LMT Trigger indicator. This indicator has its own window which appears below the chart and displays green or red histogram bars as the reflection of the trend momentum. Depending on the provided color, a trader can decide to go long trade or short trade. The second important element is 10-period Exponential Moving Average, and where the price is above it, the trend is considered bullish. Similarly, when the price is below it, the trend is considered bullish. The third and last element to decide on trade is the candlestick pattern. For the needs of that strategy, please considered only Engulfing Pattern, Pin Bar Formation, and Doji Pattern.

Buy Signal

Follow these steps for a long trade:

The Trigger indicator provides at least three green bars in a row
The price is above the Exponential Moving Average
Price swings higher from recent low swing
Manually recognized one of the three candlestick patterns to take place
Buy trade is triggered after the above conditions are met
Set stop loss a few pips below the last swing low of the market
Take profit or exit whenever the price drops below the Exponential Moving Average use your own method of trade exit

LMT Forex Formula Trading System Example of Buy Trade

Sell Signal

Follow these steps for a short trade:

The Trigger indicator provides at least three red bars in a row
The price is belowthe Exponential Moving Average
Price swings lower from recent high swing
Manually recognized one of the three candlestick patterns to take place
Sell trade is triggered after the above conditions are met
Set stop loss a few pips below the last swing low of the market
Take profit or exit whenever the price rise above the Exponential Moving Average use your own method of trade exit

LMT Forex Formula Trading System Example of Sell Trade

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the LMT Forex Formula Trading System in MT4?

Installation Guide

Download the LMT Forex Formula Trading System.rar archive at the bottom of this post, unpack it, then copy and paste the indicators files of the LMT Forex Formula Trading System into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Furthermore, to run the LMT Forex Formula Trading System you need to copy the template file into the templates folder. To proceed, right-click on a chart, then Template > Open Templates, and then copy the LMT Forex Formula Trading System.tpl file into that folder. Now select the file and click Open to load the system on your chart.

Bottom Line

The LMT Forex Formula Trading System is well worth adding to your trading collection. A good forex strategy will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex trading system provides false signals occasionally. Its performance will vary significantly depending on market conditions.