10 pips trading strategy
As a basis trading strategy are taken by the breakdown of the maximum and minimum of the previous trading day. Most traders believe that if the previous day's high is broken through, the price will go up, and vice versa for the low. Knowing these facts we will earn our profit if we open a buy trade when the previous day's high is broken through, and a sell trade when the previous day's low is broken through.
But since another category of traders uses these same 2 points as support and resistance levels, the price does not always move towards breaking the high and low of the previous day, respectively, there is a need to use a StopLoss fixed value to limit their losses if necessary.
Marketplace: Forex;
Currency pairsEURUSD;
Timeframe: H1;
Indicators : not used;
Strategy: intraday;
Protective orders: StopLoss, TakeProfit.
Signals trading strategy 10 pips
Work on the strategy is carried out by pending orders, which are set at 00:00 GMT. If they did not work during the day, then exactly one day later they are removed and new ones are set.
1. At 00:00 GMT we place 2 pending buy orders (above the previous day's maximum +3 points) and sell orders (below the previous day's minimum -3 points).
2. Install TakeProfit - 10 points.
3. Set StopLoss - 30 points.
4. Important: only two orders are set during the day. If trades are closed, it is not necessary to re-enter the market.
5. Recommended risk: 3% -5% from the deposit on each transaction.
Perhaps it is obvious, but instead of a takeaway, it is better to use a trailing stop or a similar advisor.
If the take is less than the stop, the strategy is unprofitable.
Checked on the eurusd since early 2010.
The strategy approximately works at zero at take=stop=30p.
Also tried at 35p -> transfer to Breakeven at 30p and doubling the take - 60p. Profitability 1.53.
Interesting results. It turns out that the price is more often working on the pullback than on the breakout of the previous day's levels. Have you tried to change the order directions?
Please tell me if this system is used on the daily chart, the result will be the same
Ronald Milushkevich, yes, in general there is no difference in what timeframe to use the system, you can use a daily.