Forex Strategy Breaking / Hacking is a very interesting and logical trading system. It uses the principle of trading towards the older time interval, which opens up good prospects for transactions.
- Currency pairs — GBP/USD, EUR/USD, USD/JPY, USD/CAD.
- Senior time interval — D1.
- The younger time interval is H1.
- Indicators are not used.
Statistics:
From May 2019 to May 2020, when trading on the indicated 4 pairs, the strategy showed results in the region of +194%. The risk per individual trade was 3%. Drawdown did not exceed 15%.
Conditions for purchases according to the rules of the Hacking strategy:
1) On the daily interval, a white candle is formed, which absorbed at least two previous candles (their bodies).
2) The next day, on the hourly interval, we are looking for an entry to buy.
3) Login Options:
The next candle engulfed two previous candles with a white body.
After a systematic decline (several black candles in a row), 2 or three candles with a white body are formed, which absorbed the corresponding number of black candles (their bodies). This combination must be fully formed from the candles of the current day.
At the close of the last candle of the desired combination, a buy deal is concluded.
4) Stop loss is set below the low of the day. Not more than 50 points (4 digits) and not less than 30. For currency pairs with the pound, the minimum stop size is 35 points.
5) After passing 45 points in the positive zone, the transaction is transferred to breakeven.
6) Initially, the take profit is set at a distance three times the size of the stop loss order.
7) As soon as the day within which the entry was made is closed, the size of the current profit in points should be measured. If the current profit is greater than the stop size, then the current profit is multiplied by three and the take profit is moved to this distance, but not more than 150 points. If this distance is less than the initial stop, then the take profit does not change.
8 ) If the day closes in a negative zone exceeding 3 points (that is, the transaction is in the red more than 3 points), then the transaction is closed at the current price.
Conditions for sales — «Hacking»:
1) A black candle is formed on the D1 interval, which has swallowed at least 2 previous candles (their bodies).
2) On the next trading day on the H1 interval, we are looking for a sell entry.
3) Trade entry options:
The next candle engulfed 2 previous candles with a black body.
After a steady growth (several white candles in a row), 2 or even 3 candles with a black body are formed, which completely absorbed the corresponding number of white candles (their bodies). This combination must be fully formed only from the candles of the current day.
At the close of the last candle of the combination we need, a sell trade is opened.
4) A safety stop loss is set for the high of the day. But it should not be more than 50 points and not less than 30. For pairs with the pound — GBP / USD, the minimum stop size is 35 points.
5) After the price passes 45 points in the «+» zone, the transaction is transferred to the breakeven point.
6) Initially, the take profit is set at a distance 3 times the size of the order — stop loss.
7) As soon as the daily candle closes, within which the trade was entered, it is necessary to measure the size of the current profit in points. If this profit is greater than the size of the set stop, then the size of the current profit is multiplied by 3 and the take profit order is moved to this distance, but not more than 150 points. If this distance turned out to be less than the initial stop, then the take profit does not change at all.
8 ) If D1 closes in the «-» zone exceeding 3 points (that is, the deal is in the red by more than 3 points), then it should be closed at the current price.
Video version of the forex strategy «Hacking»:
- Recommended to watch with English subtitles!
and:
- There are no indicators in the strategy, so I don’t attach them, and for the same reason there is no template for MT4.
- Strategy test: +153.98% for 12 months can be found here ➜
