Strategy "One-Two"

Strategy "One-Two"

Recommended timeframes M15

This strategy is a variation of reversion strategies based on the "Bollinger Bands" indicator. The strategy is easy to master and uses a technical indicator pre-installed in any MT4 terminal. Therefore, standard instruments are all that a trader needs. The strategy is applicable to all currency pairs, such as EUR/USD, GBP/USD, AUD/USD, CAD/USD, NZD/USD, and USD/JPY. All popular time-frames may be applied: M15, M30, H1, H4, and D1.

Indicators used:

• Bollinger Bands (Period 20, Shift 0, Deviation 2) - the green lines on the chart

• Bollinger Bands (Period 20, Shift 0, Deviation 2) - the orange lines on the chart

 Conditions for opening "Buy" trades (Pic.1):

• Wait till the price is located between the green and the orange lines. Mark this candle as "0".

• Wait till 2 more candles are formed. If the closing prices of the candles "0" and "1" have been higher than those of previous candles ("White" candles), open a Buy trade at the opening of the candle.

Conditions for opening "Sell" trades:

• Wait till the price is located between the green and the orange lines.

• Wait till 2 more candles are formed. If the closing prices of the candles "0" and "1" have been lower than those of previous candles ("Black" candles), open a Sell trade at the opening of the candle 2.   

Conditions for closing trades

• Stop Loss at the distance of 5 points from High or Low of the candle 1.

• Targets will vary according to the instrument and time-frame. For example: 60 points for EUR/USDH4, 70 points for GBP/USDH4, 200 points for EUR/USDD1, 250 points for GBP/USDD1.

• The price reaches the middle line of Bollinger Bands - the red one on the chart.

• The trades may be also switched to the "no loss" mode once the chart has crossed the middle line of the bands.