Posted by: joetradingplace | February 22, 2015

Simple Trading Strategy

I had a couple of emails from some followers, requesting me to show them my trading strategy. I trade price action and it is not easy to teach someone how to trade as i do, a lot of it is experience. But I have decided to show a simple strategy that is more mechanical than discretionary. Its nothing new, the strategy uses bollinger bands on an hourly charts, SL and profit targets are set on entry. It is a trend following strategy, so there are more losing trades than winners, but the big winners covers for all the losses, and it is a profitable strategy. Its not a scalping strategy and it is not for traders who want to win everyday or every week…..

Hourly chart, Bollinger bands (20)

Buy (in an up trend)
When bullish bar closes above BB (trigger bar), buy order is place 10 pips above high
SL is placed 10 pips below the 2nd recent HL, trade in multiple positions (6 lots).
Targets – High minus low (trigger bar)x 1.5 (1st target)
1st target x 2 = 2nd target
2nd target x 2 = 3rd target
2nd target x3.5 = 4th target
4th target x 2 = 5th target
6 th target is left to run until reversal.

Vice versa for sell

It will all come clear when we start positing charts and taking trades. And remember its a trend following strategy, so we buy when trend is going up and sell in a downtrend. Avoid trading this strategy in a rangy sideways market, wait for price to breakout of a range then start looking for trades.


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