The wave tracker strategy is a trend following strategies whose main purpose is to identify, using indicators, exchange rate direction, and join the new trend without a predefined profit target.

But with a trailing stop, this purpose is to lock in our profits.

This strategy is suited for different time frames from 1 hour and bigger. With bigger the time frame, the higher the level of precision.

The strategy is suitable for all currency pairs, commodities, indices, stocks and futures contracts.

For the strategy, Average Directional Movement Index, Parabolic SAR and Simple Moving Average need to be used.

Buy Signal of Wave Tracker Strategy

A preliminary buy signal appears when the rate is above the 100 moving average.

On at the same time, +DI crosses – DI  in an upward direction.

The position should be entered only once parabolic SAR has given it by signal in the form of the first dot below the rate.

Once the position is entered, the Stop Loss should be adjusted to keep up with the parabolic SAR indicator.

In this way, the position will be maintained until the stop loss has been triggered.

Sell Signal of Wave Tracker Strategy

A preliminary sell signal appears when the rate is below the 100 moving average.

But at the same time, +DI crosses over the -DI in a downward direction.

The position should be entered once parabolic SAR has given his csell signal in the form of the first dot above the rate.

Once the position has been entered Stop Loss should be moved according to the parabolic SAR indicator.

In this way, the position will be maintained until the stop loss has been triggered.