Review the Forex Trading System “3 LITTLE PIGS”

Speaking of trading systems, there is no perfect forex trading system in the world of trading. I have often visited various forums to search for the best system and finally I found the ” 3 Little Pigs Trading System “. This system is very simple but amazingly effective. How is the system?Following this I will provide steps to use this system. Let’s let’s discuss one by one.

3. System Summary

   This system is based on 3 time frames, namely weekly, daily and 4 hours. Here are the conditions if you want to use this system:

   • Use period 55 Simple Moving Average (SMA) on a weekly time frame

   • Using the 21-period Moving Average (SMA) on the daily time frame

   • Using a 34-period Moving Average (SMA) at a 4-Hour time frame

4. Currency

   You can use this system for the following pairs: AUD / USD, EUR / GBP, EUR / JPY, EUR / USD, GBP / USD, USD / CAD, USD / CHF, USD / JPY

5. Entry Buy / Sell

   The following are the conditions for taking a position:

   • BUY position

     • The price is above the 55 period SMA on the weekly time frame

     • The price is above the period 21 SMA at the daily time frame

     • At the close of the next candle, the candle touches and then closes above the 34-period SMA at the 4-hour time frame, then you can take long positions.

   • SELL position

     • The price is below the period 55 SMA on the weekly time frame

     • The price is below the period 21 SMA at the daily time frame, I will enter

     • At the close of the next candle, the candle touches and then closes below the 34-period SMA at the 4-hour time frame, then you can take short positions

   Stop loss

Stop loss is needed to limit losses. First, check the period 14 Average True Range (ATR) indicator and add to all 4-hour charts. Second, add the highest level and the low level that is on ATR (shown on the right) and multiply it by 25%, then I place the stop above / below 34 SMA for a period of 4 hours.

TARGET

Adjusted to the risk and minimum reward ratio of 1: 1 or using a trailing stop.

Additional information

1. Never enter, if one timeframe is not in accordance with the provisions
2. Don’t forget to place a stoploss

Weakness

1. Not suitable for aggressive traders
2. Patience is required for entry to the market