SCOTT WELSH TRADING BLOG

Master Trend for 2022 (Simple)

Master Trend for 2022 (Simple)

Jan. 9, 2022

This week we’re looking at strategies we’re going to track in 2022.

In our last Newsletter, we talked about the Free Portfolio. That one used old-school methods.

This one is also free, but uses the Master Trend robot. This robot uses very basic methodologies but wasn’t created until 2020.

When I did my research, I looked at 12 different Master Trend variations and, interestingly, they were all hypothetically profitable in 2021. They all were also hypothetically profitable over the long-term (from 2003-2021). So, if the all produced money, which one should we pick?

For the Newsletter, I’m going to pick the simplest ones. A few of them have some extra bells and whistles, so I’m ignoring those for our purposes. (Master Trend members who purchased the robot will get all of those settings). Here’s the Master Trend strategy we’ll track in 2022:

The 1H Master Trend Bollinger Bandâ„¢ Breakout (GBPJPY Only)
Enter: Go Long when price closes above the upper band (length 100/standard deviation 3.0); do the opposite for Short trades.
Long Target: 275 pips
Short Target: 350 pips
Stop: 260 pips
Break-Even: 60 pips
Time Exit Long: 130
Time Exit Short: 300

2021 Hypothetical Returns (using 1 lot): +$8,626
2003-2021 Hypothetical Returns (using 1 lot): +$114,596

This strategy is very picky and tries to ride trends. That seems like a good way to trade long-term. But I think it needs one more helper. So, we’ll also track this:

The 4H Master Trend Bollinger Bandâ„¢ Breakout (GBPJPY Only)
Enter: Go Long when price closes above the upper band (length 80/standard deviation 1.0); do the opposite for Short trades.
Long Target: 450 pips
Short Target: 425 pips
Stop: 120 pips
Break-Even: 75 pips
Time Exit Long: 240
Time Exit Short: 110
Restriction: No trades after 12 pm ET

2021 Hypothetical Returns (using 1 lot): +$4,728
2003-2021 Hypothetical Returns (using 1 lot): +$183,332

Here’s what the Annual Returns look like when traded together:

It’s not perfect; there is a losing year way back in 2006. But the rest of the years are positive and the big-trending years are massive. And these systems can be traded manually or with a robot.

We’ll see how it goes.

We’re not done, however, with our tracking for 2022. We’ll talk about a few more things next week. But these are going “live” (meaning: tracking starts then) January 10, 2022.

Talk to you soon.

Join the free Newsletter list here .

 

Get The Legend of Purple Valley: An Incredible Trading Journey here.

Get The Inevitability of Becoming Rich here.

 

 

To become an Elite Member go here.

 

Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.