Great! Let’s set up your 5-Minute Trend Trading Strategy on TradingView.
🔹 Step 1: Open a 5-Minute Chart
1️⃣ Go to TradingView and open your preferred forex pair (e.g., EUR/USD).
2️⃣ Click on the timeframe selector (top left) and select 5m (5-minute chart).
🔹 Step 2: Add Indicators
✅ 50 EMA (Exponential Moving Average)
Click Indicators (fx icon at the top).
Search for "Exponential Moving Average" and add it.
Click the settings ⚙️and set the Length to 50, change the color to blue.
✅ 20 EMA
Add another Exponential Moving Average.
Set the Length to 20, change the color to yellow.
✅ RSI (Relative Strength Index, 14 period)
Open Indicators again.
Search for "Relative Strength Index (RSI)" and add it.
Keep the default settings (14 period, levels at 70 & 30).
🔹 Step 3: Save Your Chart
Click on Save Layout so you don’t have to set it up again.
Now your chart is ready! ✅
👉 Let me know if you need help adjusting anything before we move to backtesting. 😊
Great! Now let’s **backtest** the strategy to see how well it works.
---
### **🔹 Step 1: Go Back in Time**
1️⃣ On TradingView, **scroll back** on the 5-minute chart.
2️⃣ Stop at a random point **before you see future price movements** (so you don’t cheat).
---
### **🔹 Step 2: Identify Trade Setups**
Look for these conditions:
✅ **Buy Setup (Long Trade):**
- Price is **above the 50 EMA** (blue line).
- Price pulls back to touch the **20 EMA** (yellow line).
- RSI is **above 50** (bullish momentum).
- A **bullish candle forms** after touching the 20 EMA.
✅ **Sell Setup (Short Trade):**
- Price is **below the 50 EMA**.
- Price pulls back to touch the **20 EMA**.
- RSI is **below 50** (bearish momentum).
- A **bearish candle forms** after touching the 20 EMA.
---
### **🔹 Step 3: Mark Your Entry & Exit**
🔹 **Entry:** Place a trade where a confirmation candle forms.
🔹 **Stop-Loss (SL):**
- **For buys:** Below the last low.
- **For sells:** Above the last high.
🔹 **Take-Profit (TP):**
- Set at **2x your stop-loss** (Example: If SL = 10 pips, TP = 20 pips).
---
### **🔹 Step 4: Record the Results**
💡 Use a simple table to track trades:
| Trade # | Pair | Buy/Sell | Win/Loss | Pips Gained/Lost | Notes |
|---------|------|---------|----------|------------------|-------|
|1 | EUR/USD | Buy | Win | +20 pips | Clear pullback to 20 EMA |
|2 | GBP/USD | Sell | Loss | -10 pips | RSI was near 50 (weak signal) |
---
### **🔹 Step 5: Analyze the Results**
- Did more trades **win or lose**?
- Are there **common patterns in your winning trades**?
- What **mistakes** did you notice in losing trades?
---
👉 **Try backtesting 10 trades and tell me your results!**
I’ll help you analyze them and improve your approach. 😊
Great question! **Risk management** is key to long-term success in forex trading.
### **📌 How Much Should You Risk?**
A common rule is to **risk only 1-2% of your total capital per trade**.
💰 **Your Account Balance: $200**
🔹 **Risk 1% per trade:** $200 × 1% = **$2 risk per trade**
🔹 **Risk 2% per trade:** $200 × 2% = **$4 risk per trade**
---
### **📌 How to Calculate Lot Size (Position Size)?**
Your **lot size** depends on:
✅ Risk per trade (**$2 or $4**)
✅ Stop-loss distance (**in pips**)
✅ Currency pair volatility
**Example Calculation:**
- You trade **EUR/USD**.
- Your stop-loss is **10 pips**.
- You risk **$2 per trade**.
💡 **Lot Size Formula:**
📌 **Lot size = (Risk per trade) ÷ (Stop-loss in pips × Pip value)**
For EUR/USD:
✔️Pip value for **0.01 lot (micro lot)** ≈ **$0.10 per pip**.
✔️**Lot size = $2 ÷ (10 pips × $0.10) = 0.02 lot (2 micro lots).**
---
### **📌 Final Risk Management Plan for Your $200 Account**
✅ **Risk 1-2% per trade** ($2-$4).
✅ **Use a stop-loss** (don’t risk more than 10-20 pips per trade).
✅ **Start with small lot sizes** (0.01 - 0.03 lots).
✅ **Never overtrade** (max 3-5 trades per day).
---
### **🔥 Next Step:**
Do you want a **position size calculator** or need help setting up risk management in TradingView? 😊
