Probably the best free forex trading strategy I know is Bladerunner and combined with price action is probably the easiest to use in trading. Bladerunner is a foreign exchange selling strategy that uses pure Price of Action to find entries.
The only indicator used in this strategy is the on-chart indicator, 20 EMA. Another alternative is to use the standard Bollinger band centerline. Either work well or not but actually you can use both to exchange it as Bollinger band EMA strategy. The example here we will use 20 EMA.
This setting can be traded on any pair. It can also be traded on any time frame, however the example below is from a 5 minute chart.
This strategy is named Bladerunner because 20 EMAs act like knives splitting the price
If the price is below 20 EMA, the bias will be short and will find the price to go up and reach 20 EMA.
However, if the price breaks through the EMA 20 and closes convincingly on it, we assume the price has changed the polarity and now the bias turns to long. (This can be seen happening to the right of the image above).
From now on we will find the price to go down and hit 20 EMA and then go up.
When should the entry market be?
The price should be out of consolidation in other words the price should be the trend
The price then has to retest 20 EMA, If the price above EMA it should reverse and stay above EMA, And vice versa when the price is below EMA.
More specifically from this strategy: The first candle to touch the EMA should be closed on the same side as the EMA as it approaches the price. That's when you can entry into the market in accordance with the direction of existing trends.
NOTE: The price should be true in bullish or bearish trend, if used in sideways condition then this strategy does not apply.
ORDER PLACEMENT
The approach suggested in this strategy is to open 2 orders while using this strategy.
For BUY entries:
2 buy stop orders placed with 2 pips entry above confirmed candle.
The order ends at the beginning of a new candle. For example, if you enter a limit order on a five-minute chart, the order will end at the beginning of the next five minutes candle, unless it has been charged by the price action on the current five minute candle.
Stop loss is placed 2 pips below the candle signal touches 20 EMA.
Take profit for the first order is set at an equivalent amount of risk in pips. For example, if the risk in trading is 20 pips, the first take profit order target will be set at 20 pips.
Take profit for the second order is set at an amount equal to double the risk in pips. So, to use the above example, take profit in second order will be set at 40 pips.
For SELL entry:
2 sell stop order placed by entering 2 pips below confirmed candle.
The order ends at the beginning of a new candle. For example, if you enter a limit order on a five-minute chart, the order will end at the beginning of the next five minute candle, unless it has been charged by the price action on the current five minute candle.
Stop loss is placed 2 pips above the touch signal candle 20 EMA
Take profit for the first order is set at an equivalent amount of risk in pips. For example, if the risk in trading is 20 pips, the first take profit order target will be set at 20 pips.
Take profit for the second order is set at an amount equal to double the risk in pips. So, to use the above example, take profit in second order will be set at 40 pips.
This is a fairly simple Bladerunner strategy, but when combined with price action then you can get the most benefit from this strategy.
The only indicator used in this strategy is the on-chart indicator, 20 EMA. Another alternative is to use the standard Bollinger band centerline. Either work well or not but actually you can use both to exchange it as Bollinger band EMA strategy. The example here we will use 20 EMA.
This setting can be traded on any pair. It can also be traded on any time frame, however the example below is from a 5 minute chart.
This strategy is named Bladerunner because 20 EMAs act like knives splitting the price
If the price is below 20 EMA, the bias will be short and will find the price to go up and reach 20 EMA.
However, if the price breaks through the EMA 20 and closes convincingly on it, we assume the price has changed the polarity and now the bias turns to long. (This can be seen happening to the right of the image above).
From now on we will find the price to go down and hit 20 EMA and then go up.
When should the entry market be?
The price should be out of consolidation in other words the price should be the trend
The price then has to retest 20 EMA, If the price above EMA it should reverse and stay above EMA, And vice versa when the price is below EMA.
More specifically from this strategy: The first candle to touch the EMA should be closed on the same side as the EMA as it approaches the price. That's when you can entry into the market in accordance with the direction of existing trends.
NOTE: The price should be true in bullish or bearish trend, if used in sideways condition then this strategy does not apply.
ORDER PLACEMENT
The approach suggested in this strategy is to open 2 orders while using this strategy.
For BUY entries:
2 buy stop orders placed with 2 pips entry above confirmed candle.
The order ends at the beginning of a new candle. For example, if you enter a limit order on a five-minute chart, the order will end at the beginning of the next five minutes candle, unless it has been charged by the price action on the current five minute candle.
Stop loss is placed 2 pips below the candle signal touches 20 EMA.
Take profit for the first order is set at an equivalent amount of risk in pips. For example, if the risk in trading is 20 pips, the first take profit order target will be set at 20 pips.
Take profit for the second order is set at an amount equal to double the risk in pips. So, to use the above example, take profit in second order will be set at 40 pips.
For SELL entry:
2 sell stop order placed by entering 2 pips below confirmed candle.
The order ends at the beginning of a new candle. For example, if you enter a limit order on a five-minute chart, the order will end at the beginning of the next five minute candle, unless it has been charged by the price action on the current five minute candle.
Stop loss is placed 2 pips above the touch signal candle 20 EMA
Take profit for the first order is set at an equivalent amount of risk in pips. For example, if the risk in trading is 20 pips, the first take profit order target will be set at 20 pips.
Take profit for the second order is set at an amount equal to double the risk in pips. So, to use the above example, take profit in second order will be set at 40 pips.
This is a fairly simple Bladerunner strategy, but when combined with price action then you can get the most benefit from this strategy.
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