Forex Hitman System

The Forex Hitman System combines multiple indicators to develop a trend-following system. In this guide, we’ll talk about the system and how you can trade it.

What is the Forex Hitman System?

The Forex Hitman uses two Moving Averages and Laguerre indicators to create a trend-following system.

The two MAs have 16 and 48 by default. You can change them according to your preference. The MA crossover is one aspect of the Hitman System. When the shorter MA crosses above, the longer one, we have a golden cross. On the other hand, if the longer MA crosses above the short one, it is called a death cross.

The other aspect of the Hitman System is the Laguerre indicator. It is a modified version of the traditional RSI and oscillates between 0.2 and 0.8. The 0.2 level is considered the oversold level, and you can expect a bullish reversal, while the 0.8 is the overbought level, and you can look for a bearish reversal.

Unlike the RSI, Laguerre helps in removing market noise and is more responsive to the current price.

Forex Hitman System
Forex Hitman System

Forex Hitman System Strategy

To trade with the Forex Hitman System, you have to combine the Laguerre indicator and the Moving Averages crossover.

If the Laguerre indicator is near the oversold level (near 0.2), and the shorter MA crosses above, the longer one, you can look for long positions. Conversely, if the Laguerre is near the overbought level (near 0.8) and the longer MA goes above, the shorter one, you can look for short positions.

One thing to remember is that the Laguerre indicator can give false signals, and may not presents opportunities at overbought/oversold levels every time.

Although the system works on all timeframes, it’s best to look for the signals on longer timeframes to avoid market noise.

Buy Signal

  • The Laguerre indicator must be near 0.2.
  • The shorter MA must cross above the longer one.
  • Wait for the price to continue moving upwards, and then enter.
  • Place a stop-loss at a recent low.
  • Set take-profit at the recent high or exit the trade when the shorter MA dips below the longer one.
Forex Hitman System buy signal
Forex Hitman System buy signal

Sell Signal

  • The Laguerre indicator must be near 0.2.
  • The shorter MA must cross above the longer one.
  • Wait for the price to continue moving upwards, and then enter.
  • Place a stop-loss at a recent low.
  • Set take-profit at the recent high or exit the trade when the shorter MA dips below the longer one.
Forex Hitman System sell signal
Forex Hitman System sell signal

Forex Hitman System sell signal Pros & Cons

Forex Hitman is not a holy grail of trading. It’s better to understand its pros and cons before applying the system.

Pros

  • The system is easy to understand.
  • It can present clear entry points.

Cons

  • The Laguerre indicator can produce false signals.
  • The system may not be suitable for shorter timeframes.

Conclusion

The Forex Hitman System is a beginner-friendly system that helps identify the overall trend and can present good entry points. For further signal confirmation, you can add another indicator to the system. However, you may want to confirm all signals with additional market analysis. I would be looking at price action including support and resistance levels along with any bullish or bearish candlestick patterns. As with any forex strategy, you should have excellent money management so that one bad trade does not cancel out a consecutive run of winners. You can always practice trading on a forex demo account to begin with to improve your trading skills and build up your confidence. Most forex brokers provide a free demo account, including IC Markets. They are my top choice for both manual and automated forex trading systems. This is because they have tight spreads, quick execution speeds, low commission fees and excellent 24/7 support.

Free Forex Robot