The trading system is the prerequisite foundation before you settle down and learn about the capital management strategy. A full trading system will help stabilize the mentality - that's for sure.

The 3 piglet strategy is:
  • A trend follows strategy.
  • A swing trading strategy.
  • Based on the multi-timeframe analysis (MTF).
Use 3 timeframes:
  • Week (Weekly)
  • Daily
  • 4 hours (H4)
About the trend we will use:
  • Long-term trend.
  • Trends Mid-term.
  • Short-term trend.
Use 3 piglets to:
  • Determine your entry point.
  • Limit the risks.
  • Identify long-term, medium-term, and short-term trends.
Strategy Invented in 2001 ...

The strategy has undergone 3 years of adjustment and return testing for optimal profit.

In 2013, an independent BabyPips review gave this strategy a 40/50 maximum score ...

  • The current rules have not changed since 2004
  • Can be used for any financial market ...
  • Use the 3 Piglet MTF Trading Strategy to primarily trade 8 currency pairs in the market. In theory, it can be applied to any financial market
  • Takes less than 10 minutes per day to trade 8 currency pairs.
This strategy has been proven, bro. Maybe you will need 1 more demo or back-test time to track the effectiveness. If you feel effective, no-hassle, please boldly use it in your daily trading.

1. The 1st piglet:

Purpose of 1st Piglet: To ensure we trade in the direction of the long term trend based on the average closing price for the year.

To do this, we use:
  • Weekly chart.
  • 55-period simple moving average - SMA (55): The SMA (55) uses the parameter of closing price - Represents the average closing price over the past year.

The long-term trend is considered as follows:
  • UP trend when the price is ABOVE (55)
  • DOWN TREND when prices are BELOW SMA (55)
Input criteria - Based on the first piglet:
  • A Long trade is only executed when the Long Term Trend (weekly chart) is UP, meaning the price is ABOVE the SMA (55).
  • The short trade is only done when the Long Term Trend (weekly chart) is DOWN, meaning the Price is BELOW the SMA (55).
2. The 2nd piglet:

Purpose of 2nd Pig: To ensure we trade in the direction of the mid-term trend based on the average closing price for the past month.

To do this, we use:
  • Daily chart.
  • 21-period Simple Average - SMA (21): SMA (21) uses the closing price parameter - represents the average closing price over the past month.

The mid-term trend is considered as follows:
  • TURNS UP when the price is ABOVE (21)
  • DOWN TREND when prices are BELOW SMA (21)
Input criteria - Based on 1st & 2nd piglets:
  • Only perform Long trading when:
  1. The long-term (annual) trend is UP, meaning Price is ABOVE the SMA (55) for the weekly chart, and:
  2. The medium-term (monthly) trend is UP, meaning that Price is ABOVE the SMA (21) for the daily chart
  • Short trading is only executed when:
  1. The long-term (annual) trend is DOWN, meaning Price is BELOW (55) for the weekly chart, and:
  2. The medium-term (monthly) trend is DOWN, meaning that Price is BELOW (21) for the weekly chart.
3. The third piglet:

Purpose of Pig 3: To ensure we trade in the direction of the short-term trend based on the average closing prices for the past week.

To do this, we use:
  • 4-hour chart.
  • 34-period Simple Average - SMA (34): SMA (34) uses the closing price parameter - represents the closing price for the past week.

Short-term (weekly) trends are considered:
  • UP trend when a candle hits and closes ABOVE (34)
  • DOWN DOWN when a candle hits and closes BELOW SMA (34)
Input criteria - Based on 1st, 2nd & 3rd little pigs:
  • Only perform Long transaction when:
  1. The long-term (annual) trend is UP, meaning Price is ABOVE the SMA (55), and:
  2. The medium-term (monthly) trend is UP, meaning Price is ABOVE the SMA (21), and:
  3. The short-term (weekly) trend is UP, which means A candle hits and closes ON the SMA (34)
Important Note:
  • The long and medium-term trend is confirmed UP when the price is ABOVE the SMA (55) and SMA (21).
  • The short-term trend is confirmed UP only when the candlestick touches and closes ON the SMA (34).
Short trading is only executed when:
  • The long-term (annual) trend is DOWN, meaning Price is BELOW (55), and:
  • The medium-term (monthly) trend is DOWN meaning Price is BELOW the SMA (21), and:
  • The short-term (weekly) trend is DOWN, meaning A candle hits and closes BELOW the SMA (34).
Important Note:
  • The long and medium-term trend is confirmed DOWN when the price is BELOW the SMA (55) and the SMA (21).
  • The short-term trend is confirmed DOWN only when the candlestick touches and closes BELOW (34).
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