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For MT4, the Brain Trend Trading System is a gainful trend following system. That determines the price momentum relying on the market trend and waits for the indicators to sign for opening a trade. Moreover, this strategy is straightforward, and traders can gain a modest profit from it from any level.
Do you know that it is possible to use this method in any FX pairs and time frames?
We’ll always look for the indicators’ confirmation since this trading method is based on indicators. However, we will use several trading tools such as BrainTrend1, BrainTrend1Stop, BrainTrend2, BrainTrend2Stop, and four auxiliary indicator formats to raise the trading probabilities.
What is the Brain trend trading system?
This trading system is a highly anticipated trading method with a good gain history. It is a straightforward trading method that has decent win and loss ratios. Besides, Brain Trend1 and Brain Trend 2 are market momentum indicators. It displayed the market direction by colors.
When the market changes its bias or remains in an upward trend, the bars become or remain blue. On the contrary, when the market changes its bias or remains in a downward trend, the bar becomes or remains red.
The Brain Trend trading system for MT4
We will utilize various trading indicators to recognize the price momentum with higher precision in the trading technique. Nonetheless, the FX market is a complete package of suspiciousness. Hence, constructing a trading system with higher possibilities using multiple indicators is the best way to occupy the market.
Here are some trading indicators for the Brain Trend trading system for MT4:
- Brain Trend1
- Brain Trend 1 Stop
- Brain Trend2
- Brain Trend 2 Stop
BrainTrend 1
It is a technical indicator that delivers buy signals with a big cyan dot. Moreover, the value of the big cyan dot is the primary stop for the trade. On the contrary, BrainTrend1 provides a bearish signal with a magenta dot while the sell conditions are met.
BrainTrend 1 Stop
It is a trend stop indicator and demonstrated with the multicolored dots. In addition, BrainTrend1 uses two colors cyan and magenta dots. However, BrainTrend1 Stop has to recognize the trend first before pointing dots. Therefore, sometimes you may not be able to see any dots on the chart.
Brain Trend 2
A technical indicator provides a buy signal with a big blue dot/arrow when trading conditions are met. Moreover, the value of the big blue dot/arrow is the primary stop for the trade. Alternatively, BrainTrend2 provides a bearish signal with a big red dot/arrow.
Brain Trend 2 Stop
It is a trend stop indicator and demonstrated with the multicolored dots. In addition, Brain Trend2 uses two colors: blue and red dots or arrows. However, BrainTrend2 Stop must identify the trend first then start to paint the dots or arrows. That’s the reason sometimes you may not be able to see any dots on the chart.
Keynotes
Cyan or blue dots below candle’s low indicate two things:
- The overall market trend is up.
- The cyan or blue dots estimations guarantee the stop loss or take profit level for the long position. On the other hand, we can find the cyan or blue points estimation in the data window.
Magenta or red dots above the candle indicate two things:
- The overall market trend is down.
- The magenta or red dots estimations guarantee the stop loss or take profit level for the short position. On the other hand, we can find the magenta or red points estimation in the data window.
Here are some of the visual portrayals of these components.
Visual portrayals of the trading system components
Bullish trading strategy
For MT4, The Brain Trend trading system is convenient for all the time spans from five minutes to daily. Here 1 hour and 4 hours give the absolute results as it removes the short-term domination of the economic events.
Although, you may select any currency pairs. Such as GBP/USD, GBP/NZD, GBP/CAD, EUR/JPY, USD/JPY, GBP/JPY, EUR/CAD, EUR/USD, EUR/NZD etc.
Bullish trading conditions
- Blue bar and cyan dots appeared on the chart
- A blue dot/arrow appeared below the blue bar
EUR/USD
Entry
After ensuring all the trading conditions, you ought to be waiting for the candle to close and implement a buy trade instantly after the candles close.
Stop loss
The current trend is the potential to maintain on the grounds that the price trading across the most recent swing low since it is a trend riding strategy. Hence, put your stop loss under the current swing low with a 10 to 15 pips buffer.
Take profit
The ultimate level of profit-taking has relied on a 1:1.5 or 1:2 risk-reward ratio. Consequently, if your stop-loss is ten pips, you should place the take profit at 20 pips. On the other hand, while the red dot/arrow and a magenta dot appear, you can profit.
Bearish trading strategy
For MT4, The Brain Trend Trading System is convenient for all the time spans from five minutes to daily. Here 1 hour and 4 hours give the absolute results as it removes the short-term domination of the economic events.
Although, you may select any currency pairs. Such as GBP/USD, GBP/NZD, GBP/CAD, EUR/JPY, USD/JPY, GBP/JPY, EUR/CAD, EUR/USD, EUR/NZD etc.
Bearish trading conditions
- Red bar and magenta dot appeared on the chart
- Red dot/arrow appeared above the red bar
USD/CAD
Entry
After ensuring all the trading conditions, you ought to be waiting for the candle to close and implement a sell trade instantly after the candles close.
Stop loss
The current trend is the potential to maintain on the grounds that the price trading across the most recent swing is high since it is a trend-riding strategy. Hence, put your stop loss above the current swing high with a 10 to 15 pips buffer.
Take profit
The ultimate level of profit-taking has relied on a 1:1.5 or 1:2 risk-reward ratio. Consequently, if your stop-loss is ten pips, you should place the take profit at 20 pips. On the other hand, while the blue dot/arrow and a cyan dot appear, you can profit.
Final thoughts
For MT4, the Brain Trend Trading System is the most gainful trading system since it relies on the high precision indicators proven with plenty of backtesting. Hence, at the end of the month, you may gain decent trading outcomes.
There is no 100 percent guaranteed benefit in every trade in trading FX. Nonetheless, success is contingent on trade management in every trading technique. You ought to utilize an appropriate money management strategy and only psychological states for having a better result from this trading technique.
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