Buy strength, sell weakness — let winners run.
The classic trend-following approach: identify the prevailing direction with moving averages, enter on pullbacks to value, and trail your stop until the trend breaks. Boring, reliable, and the strategy that built Tudor, Dunn, and Campbell.
Price must be above the 200 EMA on the daily chart.
Defines the bullish regime — no counter-trend trades.
Wait for a pullback to the 20 or 50 EMA on the 4-hour chart.
Buys at a relative discount within the trend.
Enter on a bullish engulfing or pin bar at the moving average.
Confirms buyers have stepped back in at the level.
Stop loss goes below the most recent swing low.
Invalidates the pullback thesis if breached.
Trail the stop below the 4h 20 EMA as the trend extends.
Lets winners run while protecting accumulated gains.
Exit immediately if price closes below the 200 EMA on the daily.
The trend has officially broken — no hoping.
Take partial profits (50%) at 2R; let the rest ride.
Locks in a no-loss trade while keeping upside exposure.
Trend regime filter on the daily chart.
Pullback target on the 4-hour chart.
Short-term trend + trailing stop reference.
Position sizing based on recent volatility.
Trailing stop
Trail below 4h 20 EMA once trade reaches +1R.
Pros
Cons
Catch the explosion after the compression.
Breakout trading waits for price to compress inside a range or pattern, then enters in the direction of the breakout with a stop inside the former range. The thesis: low volatility begets high volatility, and the breakout is the inflection point.
Capture the 3-7 day moves that institutional flow creates.
Swing trading holds positions for days to weeks, targeting the structural moves that emerge from institutional order flow. Combines higher-timeframe direction with lower-timeframe entry precision. Lower stress than scalping, faster than trend following.
The golden cross is the most overrated signal in retail trading — but the underlying concept is sound. Here's how to use MAs as filters, not triggers, and avoid the whipsaw graveyard.
Stop measuring trades in dollars or pips. Measure them in R — multiples of your initial risk. Once you do, your win rate stops mattering and your expectancy takes over.
Risking 1% per trade isn't a magic number — it's a survival heuristic. This article explains the math behind it, when you can stretch to 2%, and why 5% will eventually ruin you.
Open the Risk Calculator with the strategy’s recommended risk percentage already in mind.