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.
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
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
Entry Buy / Sell
The following are the conditions for taking a 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.
• 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 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.
Adjusted to the risk and minimum reward ratio of 1: 1 or using a trailing stop.
- Never enter, if one timeframe is not in accordance with the provisions
- Don’t forget to place a stoploss
- Not suitable for aggressive traders
- Patience is required for entry to the market