The financial markets will keep changing every day. A new crop of traders keep entering the market. And people keep leaving too. In spite of such changing dynamics, one has to stay focused on the task at hand. That’s making sure that Forex trading profits remain high. Of course that is easier said than done. However following a well-planned strategy is a huge help in that task.
Bladerunner Keeps Your FX Trading Profits High
Even with quickly changing market environment and dynamics, there are strategies that have stayed the same and these are as profitable as ever. One of such useful strategies is the Bladerunner. This is one relatively new strategy. It uses a very basic and classic indicator that is the EMA.
EMA or exponential moving average is an indicator that has been around in the trading circuit for long now. It remains a very useful indicator. It has certainly found good use in this Bladerunner strategy.
Now coming to the settings, the EMA needs to be set at a particular timeframe. Now developers and experts think that the 20 day EMA is very suitable for maximum FX trading profits. Though, other timeframes too have been profitable, this 20 period seems to perform the best.
The Pair of Currency
In case of currency too, there are many you could use. In fact, you could use a demo account with a particular pair. Then you can check if that Forex trading profitable or not. However, it is recommended that traders use a stable pair. Then one doesn’t have to worry about sudden volatility. Smooth trading can be conducted in such cases. Here, traders should use a pair like the US Dollar/Swedish Krona. Both currencies are generally strong and stable.
One might think why the strategy is named Bladerunner. Now understanding that is simple. This is because the timeframe (20 day period) divides the price. Therefore it acts like a blade. The part above may stay above EMA and retest. That shows probable signs that market will continue going up. Again the part below staying under EMA and retesting shows that market may keep going down.
Now before making an entry into the market, traders need to make sure of some things.
• Firstly, there has to be a breakout from trade range. Or the price has to be trending. One of these two things must happen before you make an entry.
• There must be a retest. It means that if price is under EMA, it needs to bounce off it and stay down. The same should happen in case it is above EMA.
• Also, one must note the first candle that contacts EMA. This must be on the same side of the MA. This will be your signal candle for taking long or short positions. Trading on this will then be easy.
So trading on the bladerunner is quite an easy strategy. Of course there are other strategies as well that work, but this one will enable you to keep your Forex trading profits high.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.