Multicurrency trading system on the breakdown of the Daily candle

Daily candle trading strategy is a breakout strategy, does not use any technical indicators and involves trading simultaneously on several currency pairs.

Input parameters

• Currency pairs: any.
• Timeframe: D1.
• Bidding time: any.
• Risk Management: in one trading day should not risk more than 2-5% of the deposit. This risk is distributed on all currency pairs.

In the Daily candle trading system, you can use any pattern you want.

Signals indicating the opening of a long position (buying)

1. On the previous day a bullish candle was formed.
2. Entry options:
   • On the breakdown of the maximum of the previous bullish candle.
   • At the opening price of the current candle.

Signals indicating the opening of a short position (sale)

1. On the previous day, a bearish candle was formed.
2. Entry options:
   • On the breakdown of the minimum of the previous bearish candle.
   • At the opening price of the current candle.

Options for setting a stop loss

1. A fixed stop loss of 100 pips.
2. Just above / below the previous candle.

Options for setting take profit

1. A fixed take profit of 50 pips.
2. By Fibonacci levels at 200% from the previous candle with moving the stop loss to Breakeven when the price reaches the 150% level.

Example transaction

According to ForTrader.org experts, the breakout trading strategy is of great interest for a number of reasons:

• First, trading on daily charts significantly reduces the psychological load on the trader, especially in comparison with intraday trading and scalping;
• Secondly, the breakdown strategy does not use technical indicatorsThe indicator automatically removes the disadvantages of lagging and re-rating that are characteristic of indicators;
• Third, the breakout strategy is multicurrency. The author recommends using the major currency pairs, volatility cross pairs and gold. The multicurrency strategy means that the trader will not be left without a signal for at least one trading instrument per day.

Other breakout and non-syndicated trading strategies