Strategy for Forex trading “Bladerunner trading strategy”
Bladerunner is a trading strategy for the Forex market that uses Price Action to find entries. We use candlesticks, pivot points, round numbers and support and resistance levels to trade this strategy. The author of the strategy is an American trader Erron Adams.
The Bladerunner strategy does not use oscillators like RSI, Stochastic, MACD, etc., but if additional confirmation is required, they will not interfere. Some include Fibonacci levels, which is also possible. The only indicator used here is the 20 EMA. The alternative is the middle line of a 20-period Bollinger.
You can trade on this strategy on any currency pair and on any timeframe. This description uses examples of intraday trading on a five-minute chart. Scalping brokers are best. Trading is possible at almost any time of day, but it is obvious that some periods are more reliable than others. For example, the beginning of an Asian session can provide a decent gap and a retest to enter, while an Asian session can be low-volatile. After the opening of a London session, the price may be too volatile and volatile to give reasonable entries for any strategy. But after the initial excitement has passed and the movement has stabilized, you can once again get a secure entrance or two. Therefore, it is necessary to adapt this strategy to the periods when you are able to trade it.
The strategy is called Bladerunner because the 20 EMA acts like a knife that cuts the price. If the price moves above 20 EMA and touches it again from above, it is likely to continue to rise. And if the price is lower than 20 EMA and touches again from below, it is more likely to move down. If the price is lower than 20 EMA, we are looking for points of sale in places where the price rolls up and bounces down from the line. However, if the price crosses upwards by 20 EMA and stops at the time of closing convincingly above it, the direction may change. From now on, we are waiting for the price to fall to the line and bounce up.
This picture shows examples of inputs and some important levels.
Essential input parameters for this strategy:
– The price should leave the consolidation or the range before the entrance, i.e. the direction of movement should appear.
– The price should then re-test 20 EMA successfully.
What constitutes a successful retest?
If the price is higher than the EMA, it should bounce off the line and stay higher, and vice versa, when the price is lower than the EMA. More definitely: the first candlestick, which concerns the EMA, should close on the same side of the exponential moving average. Then this candle becomes a signal candle.
If the next candle continues to move further from the EMA, it becomes a confirmation. This is an easy way to trade by strategy. If you want to trade more securely, you should use recognizable candlestick samples to confirm signals.
If Bladerunner’s strategy seems to be simplified, it’s because the behavior of the Forex price and the current basic principles are included in the trading decisions. No entry is ever based only on a price that deviates from the EMA.
– Always look for a coincidence of reasons to trade. For example, it is safer to have more than just a deviation from the 20 EMA. Ideal if the price is near support and resistance levels, beer levels or other significant price levels.
– Always keep an eye on the news when trading this strategy, especially on lower timeframes. It’s better not to trade before and after the event.
– Always trade on a trend that is determined by a higher timeframe.
In the Bladerunner strategy, opening and closing of positions can be done by market or by setting pending orders.
For this strategy it is offered to trade with the opening of two orders.
– Two Buy Stop orders are set 2 points higher than the confirmation candlestick.
– The stop order is set 2 points below the signal candle, which touched the 20 EMA. This rule is not necessary, the stop order can be placed even below the local minimum.
– The profit level for the first order is set in the amount equivalent to the risk in points.
– The profit level for the second order is set in the amount equivalent to the doubled risk in points.
After the Take Profit of the first order has been triggered, the stop of the second order is set at the breakeven level.
For sales, the conditions are similar, only with the installation of Sell Stop orders. When trading on the market positions are closed at the backward intersection of the EMA, at round levels, at the support and resistance levels.
These rules, however, are not immutable. Every trader can change their preferences.