The Sams Trend Blaster Simple Strategy
The Sams Trend Blaster Simple Strategy
The Sams Trend Blaster Simple Strategy
We recommend every member to learn this strategy first before continuing onto other
strategies. This strategy will teach you the foundations of trend trading and it’s important you
understand this first before moving on. This strategy can be used to trade both Forex and
Binary trading.
So let’s begin….
How to setup the Standard Trend Blaster Strategy
Setting up the Standard Trend Blaster Strategy is very simple, as all the hard work has been
done for you already. When you first install and load up the Trend Blaster, the default
strategy and settings are the Standard Trend Blaster Strategy. This is what to do if you want
to double check they are correct.
The Rules for this strategy Is actually very simple. We wait for the price to enter either the Buy
or Sell zones, RSI to be over bought or sold, and then a Trend Blaster arrow to appear. What
makes this strategy difficult is the trader being able to follow this strategy, as a lot of impatient
traders will bend the rules to enter trades early. Resulting in losing their investment. This is a
trend and ranging strategy, so it’s important we look to trade pairs with either structure or
pairs that are trending / ranging.
Trend lines
Trend lines are important to spot when trading currency pairs that are trending, as they act as
areas where price is likely to bounce off. A trending currency pair will normally trend within a
channel. There are always two lines in a channel.
Can you see how price will bounce in-between these channels? If price breaks these channels
then it normally indicates a trend change is happening. In this example the currency pair is
trending down. Now let’s look at an example using the Trend Blaster
In the example above you can see an upwards trending channel with the price bouncing in-
between the two lines. This is an uptrend. At the top of the channel you can see the bottom
line gets broken with the price turning into a down trend. This is a nice example of an upwards
trending currency pair and then turning into a downwards trending currency pair. The Buy and
Sell Zones on the Trend Blaster act as channels too, like trend lines. We use these buy and
sell zones to tell us what a currency pair is doing.
In the example above can you see how the buy and sell zones are being used to give us an
indication of a trend. If the zones are facing up then it’s an uptrend. If the zones are facing
down then it’s a downtrend.
What does the Trend Blaster tell us?
The first question we should be asking ourselves when we look at a currency pair is which way
are the zones facing?
This will give us an indication of what the currency pair is doing. In the example above you can
see the zones are going sideways. This means the currency pair is ranging or consolidating.
Zones facing up means Uptrend
Zones facing down means Downtrend
Zones facing sideways means Ranging
It’s important you understand what a currency pair is doing before you take a trade. The
biggest mistakes traders make in trading, is that they don’t understand the markets. They
simply just take trades for the sake of it. Learning to understand and read the markets will
greatly increase your probability of winning. Now let’s go look at some examples of when to
enter the market and when not to enter the market.
The Rules
The rules for the Trend Blaster are actually pretty simple. We are looking for three
confirmations
Price to enter the Buy or Sell Zone
RSI to be overbought or sold
Trend Blaster Arrow to appear
Price to close above or below the TCA line(white 10sma line)
As you can see from the example to the left. The price is
trending down. We know this by looking at the zones, they are
facing down so this example is a trade against the trend.
The first thing we look at when this happens is the RSI. Has it
turned red? This means the market is either overbought or
sold.
The last confirmation is; does the arrow appear above or below
the TCA line? In the example on the left, we want to see the
Trend Blaster signal candle to be above the TCA line in the
direction of where we are taking the trade.
As you can see the RSI has turned red. This means the market is overbought. First
confirmation
The second confirmation is the Trend Blaster arrow candle is still outside of the
zone. Second confirmation
The third confirmation is the Trend Blaster arrow candle is below the TCA line in the
direction of the arrow.
If we are taking a sell trade then the Trend Blaster arrow candle has to be below the
TCA line.
If we are taking a buy then the Trend Blaster arrow candle has to be above the TCA line
.
You will also notice that the TCA will turn red or green when the trend changes. When price
is above the TCA line it means the price is in an uptrend. When the price is below the TCA
line then it means the price is in a downtrend. This is why it’s important the Trend Blaster
arrow candle is following the trend.
Good Setup or Bad Setup?
The first thing we look at is the RSI. The RSI has turned red which
means the market is oversold. First confirmation
But this is not a setup that meets the rules. BAD SETUP!!!
The arrow is green which means it’s a buy trade, but the Trend
Blaster signal candle is not above the TCA line. This means that
price is still in a downtrend, so we do not take a trade. The Trend
Blaster signal candle has to be at least 90% above the TCA line to
be classed as a setup.
Learn this part as it’s so important you do not make this mistake
when trading live. This is all to do with understanding the markets
and knowing when is a good time to enter and when is a bad time to
enter.
Our take profit should always be at the opposite zone. Please bare
in mind that this is only a guidance. If the trade is against the trend
then our take profit should be just a couple of pips above the
opposite zone to make sure our trade does hit take profit. Another
suggestion is to use a 1 to 1 risk reward ratio. This means if our
stop loss is 10 pips then our take profit is 10 pips. You can also use
a trailing stop loss to if need be.
The two main things you need to remember when trading Forex is… we want our take profit to be hit and
our stop loss to be missed.
This means we always want to set our take profit in the middle of the zones. Currency pairs will bounce
from zone to zone so it’s important we understand this and factor it in. We also want to set our stop loss
above or below the previous high of the currency pair. When you take a trade, you need to consider is the
trade with or against the trend? If it’s against the trend then we want to factor in a loose Stop Loss. (Big
Stop Loss). As the trade is against the trend, we need to take into consideration that the currency pair
might go against use for a while before turning into our favour. As it’s against the trend we also want to
make sure our take profit is smaller or tighter. This is to make sure our take profit does get hit. Also
consider a trailing stop loss too. This can be used to protect our profits.
For example…. We a take a trade against the trend then we use a stop loss of 20 pips. This means if the
currency pair does go against us, then we still have some space for the trade to breath. Our take profit
should be 10 pips to make sure it gets hit. As soon as the trade goes 5 pips then we bring our stop loss to 2
pips so it lock in our profits. This is just a general guidance, but this is how you should be trading when
taking trades against the trend. Maximising our trade setups.
Trades that are with the trend, we should be using a minimum 1 to 1 risk reward ratio. This means if our
stop loss is 10 pips then our take profit should be 10 pips. We can also use a trailing stop loss with these
trades to maximise our profits.
Managing your Forex trades comes down to experience and trial an error. A good trader is someone who
can manage their trades for maximum returns and not just focus on perfect entries. It doesn’t matter how
good your entries are. If you don’t manage your trades correctly, you will not make a profit.
Binary Expiries
When trading Binary it’s either a win or a loss, so we don’t need to manage our trades like we do in Forex.
Another way to find out what expiry time to use, is to count the
candles between each zones. This will give you an indication on how
much the market is moving, and which is the best expiry time to use.
In the example to the left, you can see it took 8 candles from the price
to leave the zone at the bottom and reach the zone at the top. Ideally
you always want to add an extra 5 minutes on top of how many
candles it took.
So for example.
Now you have read this PDF it’s time to do a recap of what you have learnt. Before you ever trade live with
real money, it’s important you are consistent first on a demo account. This is to prevent you from losing
money and slowing down your learning. When learning to trade its important you keep a trading journal,
so you can document your progress. This will keep you motivated and keep you informed on your progress.
It’s also important you take notes on this strategy, and a written set of rules next to you when you are
trading this strategy.
Remember to ask yourself these three questions when trading this strategy.
Remember if you have any questions or concerns regarding setups then do not hesitate to contact one of
our admins. We are here to help you.
It’s also a good idea to print off pictures of good setups and bad setups so you can look at them when you
are trading to give you an extra confirmation.
Sam