1. Enter in the right direction of the trend

This is the first important rule for trend trading. If your trades are executed against the main trend, your chances of losing will be much higher.


This is also one of the principles to help you filter quality trading signals. Quality strategies are usually those that follow the main trend of the market.

2. Maximum risk 1% of total capital for each trade order

This second principle is related to capital management and is very important for trend traders.

Any trade we take is subject to the risk of loss. No matter how well you are following the trend – which is considered a safe direction, or how well the setup you have executed, there is still a possibility of risk. It is therefore essential to always have a risk limit for each trade you make. That limit should not exceed 1%.


3. Stop loss up to 7% for your total trades made

This is yet another principle related to capital management. That is all trades should not have a risk of more than 7%. This is also considered as the maximum amount of risk that you accept in the worst case that every trade you make will lose.

4. Take profit according to EMA 65 and EMA 200. Move stop loss along 2 EMAs until a crossover occurs

The biggest advantage in trend trading is that we can maximize profits following the trend. It helps that the RR ratio that the trader makes is very good. If traders regularly participate in trading strategies with such a good RR ratio, it is possible to be profitable in the long run.

One of the ways you can move your stop loss in line with the trend is to use the crossover of the 2 moving averages EMA 6 and EMA 200.

With the correct and sufficient application of these 4 principles to each strategy that you implement, the quality of your trading has also improved a lot.