Forex Strategy «Limit», as the name implies, uses only limit orders to enter the market.
Most often, already in the first hours of a new trading day, it becomes clear whether a limit order is set for today or not. It is this nuance that allows you to spend quite a bit of time on this trading strategy.
The principle of the strategy is quite simple – a moment is determined relative to a pronounced trend, within which, in the event of a rollback, an entry is made in the main direction.
Statistics:
From February 2019 to February 2020, the strategy showed a positive result in the region of 1250 points (for 4-digit quotes). The maximum drawdown was 70 points. In general, there are not so many transactions, but the probability of making a profit is quite high.
- Currency pair — GBP/USD.
- Time interval — H1.
Vehicle indicators:
- Bollinger Bands indicator with parameters: 48; 2; 1.75.
Conditions for purchases using the «Limit» forex strategy:
1) Not a single hourly candle during the trading day should close below the center line of the Bollinger Bands indicator.
2) We draw a horizontal line according to the opening level of the previous trading day.
3) You should wait until the price moves up from this line by at least 10 points.
4) After that, a limit order to buy should be placed 2-3 points above this line.
Attention: At the time of activation, the limit order level must not be below the lower line of the Bollinger Bands indicator.
5) Stop loss is 35 points.
6) After passing 30 points in the positive zone, the transaction is transferred to breakeven.
7) Take profit is 100 pips.
8) If during the given day the order is not activated, then it should be deleted.
Sales conditions:
1) Not a single H1 candle during the trading day should close above the central line of the Bollinger Bands indicator.
2) We draw a horizontal line according to the opening level of the previous trading day.
3) You should wait until the price moves down from this line by at least 10 points.
4) After that, a limit order to sell should be placed 2-3 points below this line.
Remember that at the time of the activation of the Limit order, the level should not be above the upper line of the Bollinger indicator.)
5) Stop loss is 35 points.
6) After passing 30 points in the «+» zone, the transaction is transferred to the breakeven point.
7) Profit-taking order — take profit is equal to 100 points.
8) If during the current day the order is not activated, then it must be deleted.
Video version of the Forex strategy «Limitka»:
And full video:
- Download MT4 template — limitka_tpl (archived).
- The indicator will be pulled up automatically when you install the template in MetaTrader 4, as it is present in any terminal by default.
