The Trio strategy is a forex day trading strategy. It was described by its designer, the German trader Wilhelm Eder, in the Traders’ magazine in 2012. Trio is a simple strategy for forex traders, based on an intelligent combination of three major technical analysis indicators.

These are advantages of the Trio strategy:

• Designed by a reputable trader.
• Simple to understand, easy to trade.
• Suitable for Forex day trading.
• Available for free in the NanoTrader platform (free demo)

The Trio trading strategy

The signal to open a position

This strategy is  used on 1-, 5-, 10- and 15-minute charts.

Three of the most well-known indicators in technical analysis -the Bollinger Bands, the MACD and the RSI- are combined into one signal. For a signal to occur all three indicators must have the same opinion (all bullish or all bearish).

The Bollinger Bands is the most important indicator in the trio. They are used to determine the direction of the trend. If the lower Bollinger band moves downwards, the trend is bearish. If the upper Bollinger band, moves upwards the trend is bullish.

This example shows a buy signal. The upper edge of the Bollinger Band is going up, indicating a positive trend. All three indicators are all bullish. When the market price touches the upper edge of the Bollinger Band, a position is opened at the market price.

This example is a short sell signal on the EUR/USD. The lower edge of the Bollinger Band is moving down, indicating a negative (bearish) trend. All three indicators are bearish. When the market price touches the lower edge of the Bollinger Band, a short sell position is opened at the market price.

Time to close this forex position

The Trio strategy uses a trend reversal of the Bollinger Bands. The trader can also opt to ad stop loss order. A long position is closed if the upper Bollinger Band starts to move sideways or goes down. A short sell position is closed if the lower Bollinger Band starts to move sideways or goes up. The optional stop loss is placed at a distance of approximately 15 pips depending on the chosen time frame.

In an attempt to maximize profits, the strategy does not put in a profit target order. 

This EUR/GBP example shows a buy signal (green background). The stop loss is the red horizontal line. A position was opened at the market price when the price touched the upper Bollinger Band. All three indicators were bullish at the time. The position was closed with a profit, after the upper Bollinger Band started moving sidewards.

People also read

• Forex trading made easy
• Using Pivot Points in forex trading
• Trading forex with NanoTrader

Recommended broker

"The market can stay irrational longer than you can stay solvent."

– John Maynard Keynes