What is the Forex Ripper Trading System ?
Forex Ripper Trading System is a popular forex trading strategy designed to help traders identify opportunities in the currency market. It is a technical analysis-based trading system that utilizes various indicators and tools to generate trading signals. The system is known for its simplicity and user-friendly approach, making it an ideal choice for both novice and experienced traders.
The Forex Ripper Trading System employs a combination of trend-following and momentum-based indicators, including moving averages, Bollinger Bands, and the Relative Strength Index (RSI). These indicators work together to provide traders with clear entry and exit signals, allowing them to make informed trading decisions. Additionally, the system includes a set of rules for managing risk and maximizing returns, ensuring that traders stay disciplined and focused throughout their trading journey.
Forex Ripper Trading System Strategy
Here’s an overview of a possible strategy using the Forex Ripper Trading System:
- Identify the trend: The first step is to determine the direction of the trend using the moving averages. The system uses two moving averages, a faster one (e.g. 12-period) and a slower one (e.g. 24-period). When the faster moving average crosses above the slower one, it signals an uptrend, and when the faster moving average crosses below the slower one, it signals a downtrend.
- Enter the trade: Once the confirmation signals are in place, enter the trade. For a long (buy) trade, place a buy order a few pips above the high of the candlestick that bounced off the lower Bollinger Band. For a short (sell) trade, place a sell order a few pips below the low of the candlestick that bounced off the upper Bollinger Band.
Here are the details of a possible buy signal using the Forex Ripper Trading System:
- Trend: The trend is bullish, as indicated by the faster moving average (e.g. 12-period) crossing above the slower moving average (e.g. 24-period).
- Entry: Once confirmation signals are in place, place a buy order a few pips above the high of the candlestick that bounced off the lower Bollinger Band.
Here are the details of a possible sell signal using the Forex Ripper Trading System:
- Trend: The trend is bearish, as indicated by the faster moving average (e.g. 12-period) crossing below the slower moving average (e.g. 24-period).
- Entry: Once confirmation signals are in place, place a sell order a few pips below the low of the candlestick that bounced off the upper Bollinger Band.
Forex Ripper Trading System Pros & Cons
- Clear signals: The system uses a set of well-defined indicators to generate entry and exit signals, which can make it easy for traders to identify potential trades.
- Trend following: The system is designed to follow short-term trends in the forex market, which can be beneficial for traders who prefer to trade with the momentum.
- Customizable: Traders can adjust the system’s parameters (such as the moving average periods and the Bollinger Band settings) to suit their individual trading style and preferences.
- False signals: Like any trading system, the Forex Ripper Trading System can generate false signals, which can lead to losing of traders act on them.
- Back testing limitations: While back testing can be a useful tool for evaluating the performance of a trading system, it’s important to recognize that past performance is not a guarantee of future results.
In conclusion, the Forex Ripper Trading System is a trend-following trading strategy that uses a set of technical indicators to generate entry and exit signals in the forex market. The system aims to capture short-term trends while managing risk. While the system has its benefits, such as clear signals and customizable parameters, traders should be aware of its limitations, including the potential for false signals and dependence on technical indicators. Additionally, traders should supplement the system with other forms of analysis and should always practice proper risk management and discipline.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.