3 Little Pigs: A Multiple Timeframe Forex Trading Strategy
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3 Little Pigs: A Multiple Timeframe Forex Trading Strategy

Everything you need to trade this independently reviewed, multiple-timeframe, trend-following forex trading strategy
0.0 (0 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
22 students enrolled
Created by Jon Mcfarlane
Last updated 2/2017
Curiosity Sale
Current price: $10 Original price: $20 Discount: 50% off
30-Day Money-Back Guarantee
  • 1.5 hours on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Trade the forex markets using a robust multiple timeframe trading strategy
  • Understand how to execute 100% mechanical trade entry signals using multiple timeframes
  • Know whether a market is trending up or down
  • How to set the optimum stop loss orders to keep risk to minimum
  • How to exit trades to ensure maximum profit potential
View Curriculum
  • You should have a basic understanding of trading the financial markets
  • You should have access to a forex trading charting platform (e.g Metatrader 4)
  • You should have a forex trading account (a free demo account is fine)
  • You should know how to enter buy and sell orders
  • You should know how to add basic technical indicators to your charts (e.g. moving average, etc)

The 3 Little Pigs Trading Strategy is a popular, multiple-timeframe forex trading strategy that is used by thousands of traders all over the world. 

In this Video Course, you’ll learn exactly how you too can use it to get maximum results in your forex trading. 

So what are the 3 Little Pigs, and what have they got to do with the forex market? 

Well, as you may know, markets tend to move in trends. They tend to move in roughly the same direction for a prolonged period of time. 

And trends = excellent trading opportunities

The 3 Little Pigs Trading Strategy is designed to take full advantage of those trading opportunities. 

In the strategy, each Pig represents:

  • the long-term trend (1st Little Pig),
  • the medium-term trend (2nd Little Pig), and
  • the short-term trend (3rd Little Pig)

Now, if you're familiar with trading, you’re almost sure to have heard the phrase…

 “The trend is your friend”

If you haven’t heard that before, it basically means that it’s easier to trade markets in the direction of the trend.

And when you think about it, trading with the trend makes perfect sense.

  • because if price is trending up, you’re more likely to make money if you are buying
  • and if price is trending down, you’re more likely to make money if you are selling

Trading in the direction of the trend is like running with the wind at your back - it just makes things easier. 

Sounds simple, right? 

But here’s the problem...

Although trend trading sounds logical, many traders really struggle to do it profitably.

Even though it sounds simple, it’s actually quite easy to get confused. 

If you’ve traded trends before, you’re likely to have run into problems like:

  • How do I know if the trend is bullish or bearish? 
  • Do I look for higher highs and higher lows? 
  • Should I use moving averages? 
  • If so, what period should they be?
  • Should they be simple or exponential? 
  • Should I use trendlines?
  • What if a trend is bullish on one timeframe and bearish on another? 

No wonder some traders get baffled! 

Confusion sets in. 

You start getting bad entries, cutting winning trades too soon, letting losing trades get big, and worst of all, missing trends altogether. 

And of course…you lose money.  

You start to wonder:

  • is this trend trading really is all its cracked up to be?
  • are the markets are rigged against me? 
  • can I really make some money from this? 

Most people just give up and decide to try something else. 

But that’s a mistake - a big mistake. 

Because trend trading works. Some of the biggest, most successful traders in the world are huge fans of trend-trading. 

Larry Hite is a hugely successful fund managers, and one of Jack Schwager's famous Market Wizards. He says:

"If you diversify, control your risk, and go with the trend, it just has to work" 

Larry Hite

So why is it that big traders can use trends to make huge sums of money, but the little guy seems to fail miserably?  

How can you make forex trend-trading work for you?

Well, what you need is a straight-forward trend-trading strategy to guide you. 

And that’s exactly where the 3 Little Pigs Forex Trading Strategy comes in!

You need a Trading Plan

The 3 Little Pigs Trading Strategy provides a clear plan for trading in the direction of the trend in the forex markets. 

And it does that by using multiple timeframes to analyse trends and find great trading opportunities. 

Here’s an example of how it works: 

  • You pick a currency pair to analyse
  • You use the strategy to check if the long term trend is bullish or bearish (this takes only a few seconds)
  • You check if the medium-term trend matches the long-term trend (this also only takes a few seconds)
  • If it does, you check the short-term trend for confirmation
  • If you get confirmation, you enter the trade! 

These steps are all very clear and simple to follow. They are designed to be straightforward and to limit any chance of you making a mistake. 

When you follow the steps correctly, you will have a trade that is in the direction of the long, medium and short-term trends

There are 2 very important benefits that you’ll experience by trading like this:

  • There’s a good chance that price will move in your direction (so you can make money), and
  • It results in a better risk versus reward ratio (your losing trades should be smaller than your winning trades) 

These are very important, so let’s look at both of them in turn. 

The Truth: How many trades will be winners? 

Before starting to trade a particular forex strategy, most traders want to know how often it produces winning trades. 

The truth about the 3 Little Pigs Trading Strategy is that not all of its trades are winners.

In fact, in certain markets you might find that less than 50% of your trades are profitable.

If that sound like a big problem, it shouldn’t! 

Because if you follow the rules, you’ll find that most often your winning trades will be bigger than your losing trades

Let’s use the results from the Babypips.com independent evaluation as an example:

  • In their independent study, 50% of their trades were winners (so half of their trades were losers)...but...
  • The average size of their winning trades was 98.45 pips (or 2.14%)
  • And the average size of their losing trades was 40.55 pips (0.7%)
  • So on average, their winning trades were more than twice as big as their losing trades

So, even though they had more losing trades than winners, the net result is that they still ended up with a profit.

That profit was 1,158 pips (+28.65%).

To save you doing the sums: even if they had only had only won 30% of their trades, they still would have been profitable overall.

Does that sound achievable? 

Of course it does! 

Every single trading strategy needs a good...

...risk versus reward ratio. 

This is why it’s important to make sure that your winning trades are bigger than your losing trades.  This is what's known as a good "risk versus reward ratio". 

And it’s crucial to the success of any trading strategy. 

The 3 Little Pigs Trading Strategy targets a positive risk versus reward ratio on its trades, and that's part of the reason why it's so popular with forex traders all over the world. 

Let’s explain how it does this: 

  • With the 3 Little Pigs strategy, you set your stop-loss orders on the short-term timeframe. This means that your losing trades are quite small
  • With the 3 Little Pigs strategy, you are trading in the direction of the long-term trend. Because price can move in your direction for a long period of time, and many of your winners can be very big

Do you see how this works? 

That means your profitable trades (reward) can sometimes be many times bigger than your losing trades (risk).

So THAT'S why the professionals are so fond of trend-trading strategies! 

Paul Tudor Jones is probably one of the most successful traders ever. Here's what he has to say on risk versus reward: 

“I’m looking for 5:1 (risk /reward).  Five to one means I’m risking one dollar to make five.  What five to one does is allow you to have a hit ratio of 20%.  I can actually be a complete imbecile. I can be wrong 80% of the time, and I’m still not going to lose.”

- Paul Tudor Jones II

As you can see, as far as what the rockstar traders look for in a trading strategy, the 3 Little Pigs tick all of the boxes. 

But that’s the big-hitting professionals - what about you? 

  • Do you think that trend-trading makes sense
  • Could you do with a proven structure to follow in your trend-trading? 
  • Do you agree that a good risk versus reward ratio is important? 

If so, sign up now, take this Video Course, and give the 3 Little Pigs Trading Strategy a try. 

You’ve seen how it can combine the power of established trends and multiple-timeframe analysis to identify profitable trading opportunities. 

Now it’s time for you to put that knowledge into action for yourself! 

Sign up, take the Video Course, and you could be using multiple-timeframe analysis to trade your first trend within a few hours. 

Trading is all about managing risk

Successful trading is all about making the most out of opportunities while limiting losses. 

We don’t believe it’s necessary to risk a lot of money while trying out a new trading strategy. 

In fact, you shouldn’t really risk anything at all, other than a few hours of your time. 

That’s why we’ve made sure that you can try out the 3 Little Pigs Trading Strategy with no risk to you whatsoever

  • You can test the strategy on a demo trading account and monitor your results - that way you don’t put any of your hard-earned capital at risk
  • The Video Course has an unconditional, 30 day money-back guarantee. So if it’s not for you, that’s fine! Just request a refund and you can move on - no harm done. 

There’s zero chance of you losing anything, and you could gain a lot! 

Here’s some more information to help you make up your mind: 

  •  If you have any questions or queries about the Course or its contents, you can email me and I’ll provide a full answer to you whatever question you have 
  • You'll get any additions I make to the Video Course absolutely free
  • There is a free strategy ebook available containing extra charts and examples (quick email sign-up required)
  • You get lifetime access so you can refer back to it as many times as you want
  • The Videos are compatible with all popular devices

This Course is NOT for you if: 

  • you want a get rich quick scheme
  • you think forex trading is an easy way to make a lot of money
  • you're lazy and don’t want to put in any effort

This Course IS for you if: 

  • you have a basic understanding of forex trading and want to improve
  • you have tried different forex trading strategies but haven’t yet found success
  • you want to learn how to analyse market trends better
  • you're interested in using technical analysis to trade the forex market profitably
  • you are ambitious and want to improve 

So If you think your trading could benefit by having access to a solid, straightforward, low risk/high reward trend trading strategy, join up now and give the 3 Little Pigs Trading Strategy a try.

Who is the target audience?
  • This course is for people who want to learn an established, reputable forex trading strategy
  • This course is for people who have tried different trading strategies but have yet to find one that works for them
  • The course is for people who are interested in using the power of multiple timeframe analysis in their trading
  • This course is for people who are interesting in trading in the direction of the long term trend
  • This course is for people who want a trading strategy that can generate 100% mechanical trading entry signals
Students Who Viewed This Course Also Viewed
Curriculum For This Course
6 Lectures
Learn To Trade Forex With The 3 Little Pigs
5 Lectures 01:06:20

In this video, you'll learn the two solid trading principles that the 3 Little Pigs Trading Strategy is built on. They are: 

  1. Trading with Multiple Timeframes, and 
  2. Trading in the Direction of the Long Term Trend

These are solid trading tactics that are used by some of the most successful traders in the world. Although they are commonly used, sometimes traders tend to take what should be simple trading tactics, and make them very complicated and confusing. 

The 3 Little Pigs Trading Strategy provides trader with a clear set of guidelines they can use to trade the market using multiple timeframes and trends, without all of the confusion and contradictions. 

After you have watched this video, I recommend you do the following: 

  • Make sure you have your MT4 trading platform (or whatever trading platform you are using) installed and ready to trade. (We encourage you to try out this strategy on a demo account before going live.)
  • I recommend you download and read the free 3 Little Pigs Strategy eBook. Reading the eBook is not a requirement for this Video Course. But I've noticed that it can really help traders get an even better understanding of the basics of the strategy. If you would like a copy, Click on this link, scroll to the bottom of the page and sign up. You'll then have access to the 3 Little Pigs eBook, which will set out everything very clearly for you. So if you are unsure about anything in the Video Course, you can refer to the eBook to check.

See you in the next section!

Preview 03:25

Understanding the Strategy Basics

In this Introductory Video, you'll learn: 

  • how the 3 Little Pigs Trading Strategy was developed
  • vital characteristics of the trading strategy
  • what timeframes you should use to trade the strategy 
  • what currency pairs you should trade the strategy on

You'll also learn:

  • how to identify the long term trend
  • how to identify the medium term trend 
  • how to use the short term trend for trade confirmation

If you have completed the video and read the 3 Little Pigs Strategy eBook, you'll now know how to: 

  • take a 100% mechanical trade entry in the direction of the long term trend
  • how to use multiple timeframes for trade confirmation

See you in the next video! 

Understanding The Strategy Basics

How To Develop a Trade Plan for the 3 Little Pigs Trading Strategy

In the first video, you learned how to make a 100% mechanical entry in the market.

In this second video you'll learn: 

  • how to develop a trading plan for your trade after you have opened it
  • where to place our stops-losses
  • how to manage our ex
  • what different options are open to us after a trade has been opened

You'll also learn: 

  • 3 x alternative options for trade entries 
  • 4 x alternative options for trade exits
  • my preferred trade entry strategy and why
  • my preferred trade exit strategy and why

After you have studied this video you'll have a 3 Little Pigs Trading Plan for each trade. You'll now know how to: 

  • make a 3 Little Pigs strategy trade entry into the market in the direction of the long term trend
  • set a stop-loss order that will protect your capital on losing trades
  • manage your take-profit orders to ensure you make as much profit as possible out of your winning trades
How To Develop a Trading Plan for the 3 Little Pigs Trading Strategy

The 3 Little Pigs Trade Plan In Action In The Live Markets

Most forex trading strategy courses cherrypick trade examples that worked out really well and were profitable. 

This does not give an accurate reflection of what it is like to trade the strategy in real life. 

We would all be wealthy if we could go back in time and just pick out the trades that worked out in hindsight!

This video course is different. 

Because in this live example, we are going to tackle a market that is quite difficult to trade. 

This will allow you to get a realistic idea of what it is like to trade the strategy in real life. 

In this video you'll learn: 

  • what has worked and what hasn't worked with this strategy 
  • what it is like to trade the strategy in difficult trading conditions
  • how the trading results tend to come in over the course of the trading year
  • the benefits of my preferred stop-loss strategy

After you have studied this video, you'll know: 

  • how to make a 3 Little Pigs trade entry, where to set your stop-loss, and how to take profit
  • the best strategy techniques based on years of testing
  • how to trade the strategy during difficult and choppy market conditions 

See you in the next video! 

The Trading Plan in Action - How To Manage Trades

Frequently Asked Questions 

In this section I'll answer the most common questions I get asked about the 3 Little Pigs Trading Strategy

After you have completed studying this video, you'll know: 

  • why I the simple moving average
  • why I have different colours on my moving averages
  • where the different periods for the moving averages come from
  • why I ignore the direction of the moving average
  • why I ignore the direction of the signal candle 
  • if you can add more indicators to the strategy 
  • if you can trade lower timeframes 
  • how to handle news events 
  • how to deal with signals that require large stop-loss orders
  • if you should wait for choppy markets to end
  • if you should add to existing positions

See you in the next video!

Answers to Frequently Asked Questions
Bonus Section: 3 Little Pigs MT4 Software
1 Lecture 16:20

It is perfectly possible to trade the 3 Little Pigs Trading Strategy with the information in the eBook and this Video Course alone. 

Many traders do not use the software and they are very successful. 

But I get a lot of requests about trading signals, and how I analyse a lot of charts in a short period of time. Some traders just want additional comfort that the trade they are taking is a valid signal, and other people just want to be able to speed up their analysis so that they can get on with their day. 

The 3 Little Pigs MT4 Indicator and the 3 Little Pigs MT4 Scanner are software tools that I had professionally coded for myself. The software allows me to analyse more markets without having to open up and scroll through lots of charts, and it alerts me to new signals when they are triggered, so I can spend less time in front of my trading screen. 

After many requests, I made the software available to Forex Useful members and it has proved to be very popular. 

In this video, you'll learn:

  • how the MT4 Indicator works
  • how to use the MT4 Indicator to generate confirmed signals
  • how to change the MT4 Indicator settings 
  • how to enable signal alerts 
  • how the MT4 Scanner works
  • how to interpret the MT4 Scanner signals 

If you'd like to buy a copy of the MT4 Software you can click here

Preview 16:20
About the Instructor
Jon Mcfarlane
4.3 Average rating
4 Reviews
40 Students
2 Courses
Independent Trader and Founder of Forex Useful

Hi, I'm Jon McFarlane, and welcome to this Video Course. 

I'm a private investor and trader. I've been managing my own capital for over 20 years. 

During that time, I've encountered virtually every single type of trading system and strategy that exists. I've tested everything from short-term scalping in the forex markets to longer term investing in the equity markets. 

Now, I just focus on just a couple of solid, robust trading strategies that have worked very well for me. 

In 2013 I founded Forex Useful. The mission of Forex Useful is to provide realistic and honest information about forex trading to its members. 

Forex trading represents a fantastic opportunity for people who want to make some money from the financial markets. But there is also a lot of hyped up and misleading information about forex trading out there too. 

Forex Useful tries to strip away the hype from forex trading and focus on the facts. We tell it how it is: good or bad! 

We have 3 trading strategies that we use on the site: I trade the 3 Little Pigs Multiple-Timeframe Strategy and a Pivot Points Strategy, and Nigel Price trades using a price action based strategy called the PAST Strategy. 

No trading strategy is perfect. But we are very committed to helping our members understand why these strategies work, and helping them to develop their forex trading in a positive direction. 

Thanks for reading, and I'm looking forward to helping you learn about forex trading!