#StrategyTrade Sure! Here's a concise trading strategy focused on **trend-following**, a popular approach in financial markets:
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**Trend Following Strategy Overview**#BinanceSquareTalks
**Objective:**
Capture profits from sustained price movements in one direction (uptrend or downtrend).
### 1. **Indicators Used:**
* **Moving Averages (MA):**#CryptoComeback
* 50-day (short-term trend)
* 200-day (long-term trend)
* **Average True Range (ATR):** For volatility-based stop-loss
* **MACD or RSI:** Optional confirmation tools
### 2. **Entry Rules:**
* **Buy Signal:**
* Price closes above both the 50-day and 200-day MA.
* 50-day MA is above 200-day MA (golden cross).
* **Sell Signal:**
* Price closes below both MAs.
* 50-day MA is below 200-day MA (death cross).
### 3. **Exit Rules:**
* **Stop-Loss:**
* 2x ATR below the entry price for long trades
* 2x ATR above entry for short trades
* **Take-Profit:**
* Trailing stop (e.g., 20-day low for long positions)
* Or exit when the 50-day crosses below the 200-day (for long trades)
### 4. **Risk Management:**#TradeOfTheWeek
* Risk 1–2% of capital per trade.
* Use position sizing to maintain consistent risk.#AltcoinTrade