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Freedom Formula System 1

Short Trades

Video 3 – Short Trades With Examples

 Rules For Short Trades

• We establish that we’re in a strong downtrend

using these 3 rules:
– 1. EMA60 and EMA15 are both pointing down.
– 2. EMA5 is below EMA15.
– 3. EMA15 is below EMA60.
• We wait for the price to retrace to touch the
EMA 60.
• When that happens we enter the trade.
 Entering The Trade

• We enter short with a 2-lot trade.

• We place a protective stop loss 40

pips back from the entry point.
 Once In The Trade

• We set the take profit level on one lot to 40

pips.

• We set the stop-loss on our second lot to

break even when the first lot is exited.

• We trail the stop of the second lots by 40 pips.

 Short Trade Example

• We determine we are in a strong down trend.

1. EMA60 (green) and EMA15
(blue) are both pointing down.
2. EMA5 (black) is below
EMA15 (blue).
3. EMA15 (blue) is below
EMA60 (green).

Strong Down Trend – Look

For The Retracement
 Short Trade Example

• Downtrend Established, Wait For The

Retracement...
 Short Trade Example

• Enter the trade with 2 lots and 40 pip stop loss

 Short Trade Example

• Exit one lot at 40

pips profit.
• Set the stop loss on
the second lot to 0.
• Trail the stop at 40
pips.
 What Now?

Move on to video 4 to watch long trade rules

and examples.

Practice making short & long trades on

MetaTrader.