I have thought of a new trading strategy I would like you guys to check out.
Here it goes.
It is based on pivot points (4 hour pivot point calculation).
We are only concentrating on the mid-pivot (not R1, R2, S1, S2).
Timeframe: 5 mins
Buy If: The open of current candle is 5> pips above the pivot point AND the low of the previous candle is 2> pips below the pivot point.
Close buy order as soon as the price hits 1 pip below pivot point.
Sell If: The open of current candle is 5> pips below the pivot point AND the high of the previos candle is 2> pips above the pivot point.
Close sell order as soon as the price hits 1 pip above pivot point.
This strategy may have lots of false breakouts. The stop loss on each trade is about 10 pips max depending on spread. The take profit will be much larger, usually around 30-50-100-200 pips depending on the strength of the trend.
Therefore it is a very good risk:reward ratio, and with incorporating money management into it (risk 2-5% of account balance per trade), it is a sure winning strategy in the long run, as any succesful trader would tell you.
The logic behind the strategy is simple, when price crosses above pivot point, it means we have the maket is bullish, and vice versa for bearish.
The reason I am disclosing this strategy is simple, like many of us here, I do not have time fore and do not want to spend long hours in front of my computer, therefore I would request if somebody would create an EA for this strategy.
Remember, this strategy will make a few small losses before making 1 big profit to cover all the previous losses.
