Speed Trap Method trading strategy

Speed Trap Method trading strategy - one of many similar ones is based on the breakdown of the range, which is formed in the first hours, after the opening of a new day.

Marketplace: ;
Currency pairs: EURUSD, EURJPY, GBPJPY;
Indicator: EMA(5);
Timeframe: M15;
Trading time: 00.00 to 02.00 GMT;
Strategy: intraday;
Protective orders: StopLoss, TakeProfit.

Trading by trading strategy

1) Draw 2 parallel lines on the maximum and minimum prices in the period from 00.00 to 02.00 terminal time.

2) On the M15 chart place exponential moving average EMA(5). In the course of trading, it must necessarily be between two parallel lines during the selected two trading hours.

3) As soon as the EMA(5) indicator breaks one of the parallel lines and closes above or below it, we make a trade in the direction of the breakdown, but the breakdown is considered correct if it occurred at least at 02.15.

Protective trading strategy orders

Take Profit set at a distance of 20 pips for EURUSD and 30 pips for EURJPY, GBPJPY.

Stop Loss it is better not to set, and close the trade when the EMA(5) crosses and closes below or above the opposite parallel line after entering the trade.

Option 2: Stop Loss set at a distance of +5-10 points on the opposite side of the channel to the concluded trade.