Blade Runner Forex Trading Strategy

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Blade Runner Forex Trading Strategy 1

The forex market could be a source of consistent profits, but it could also cause some losses. In fact, many traders would initially find it difficult to profit from the forex market. Some traders would get in and out of a trade too often thinking that this is the best way to trade the market. Now, although this is also a viable way to earn from the market, it is not the most efficient. This is because every trade you take has a cost. It is in the form of spreads, commissions, swap rates and more. Taking multiple trades too often could be a quick buck, but it could also cause your trading cost to pile up. Trading high probability trades and aiming for long-term trend gains would be more efficient.

The Blade Runner Forex Trading Strategy is a long-term trading strategy which allows the market to move in the direction of the trend much longer. Although this is a long-term strategy, it is not dependent on timeframes. Rather, the length of trade is commensurate to the timeframe. Trades could run for around a couple of hundred candles, whatever timeframe it is traded on.

Vegas Currency Indicator

The Vegas Currency indicator is a trend indicator based on a couple of custom moving averages. The longer-term moving average is colored blue while the shorter-term moving average is colored green. The indicator then creates a tunnel around the moving averages which are colored red.

On the lower timeframes, Mean Reversal traders could use the outer bands as a basis for taking trades aiming for a retrace to the mean. Momentum traders on the other hand could make use of crossovers of the moving averages as an entry signal. Other momentum traders would also use the breakout from the midline moving average as an entry signal. These are the conventional ways of using the Vegas Currency Indicator.

Relative Strength Oscillator

The Relative Strength Oscillator (RSO) is a momentum-based oscillator, which is related to the Relative Strength Index (RSI). In fact, the RSO is somehow the oscillator version of the RSI.

The RSO is an oscillator which prints histogram bars based on the movement of price. Positive RSO bars are indicative of a bullish long-term trend, while negative RSO bars are indicative of bearish long-term trend. The indicator also changes the color of the histograms. However, unlike other histogram indicators which change colors simply on whether the bars are positive or negative, the RSO indicator changes colors based on whether the bars are rising or falling, regardless of whether the bar is positive or negative. Rising histogram bars are colored lime, while falling bars are colored red.

Trading Strategy

The Blade Runner Forex Trading Strategy is a crossover strategy based on the mid- to long-term trend. It makes use of the Vegas Currency indicator as part of the moving average crossover, while using the Relative Strength Oscillator (RSO) indicator as a confirmation.

Instead of using the Vegas Currency indicator the usual way, we will be using it as part of a crossover strategy together with the 36-period Exponential Moving Average (EMA). The blue and green lines would serve as the longer-term moving average while the 36 EMA will serve as the shorter-term moving average. Signals will be considered whenever the 36 EMA crosses over the blue and green lines of the Vegas Currency indicator.

The RSO indicator on the other hand will serve as a confirmation. Instead of taking trades based on the crossover of the RSO indicator, we will be filtering our trades on whether the RSO is positive or negative. On top of that we will also be taking trades based on whether the color of the histogram is pointing the same direction as our trade.

Indicators:

  • Vegas Currency1 Hour
    • Risk Model: 2
    • MA 1: 14
    • MA 2: 28
  • 36-period Exponential Moving Average (gold)
  • RSO
    • RSO Period: 36

Timeframe: 1-hour, 4-hour and daily charts

Currency Pairs: major and minor pairs

Trading Session: Tokyo, London and New York sessions

Buy Trade Setup

Entry

  • Price should close above the 36 EMA and the Vegas Currency indicator lines
  • The gold line of the 36 EMA should cross above the green and blue lines of the Vegas Currency indicator indicating a bullish trend reversal
  • The RSO indicator should print a positive lime bar indicating a bullish trend bias
  • Enter a buy order on the confluence of the conditions above

Stop Loss

  • Set the stop loss on the support level immediately below the entry candle

Exit

  • Close the trade as soon as the RSO indicator prints a negative histogram bar

Blade Runner Forex Trading Strategy 1

Blade Runner Forex Trading Strategy 2

Sell Trade Setup

Entry

  • Price should close below the 36 EMA and the Vegas Currency indicator lines
  • The gold line of the 36 EMA should cross below the green and blue lines of the Vegas Currency indicator indicating a bearish trend reversal
  • The RSO indicator should print a negative red bar indicating a bearish trend bias
  • Enter a sell order on the confluence of the conditions above

Stop Loss

  • Set the stop loss on the resistance level immediately above the entry candle

Exit

  • Close the trade as soon as the RSO indicator prints a positive histogram bar

Blade Runner Forex Trading Strategy 3

Blade Runner Forex Trading Strategy 4

Conclusion

This trading strategy is one of the most efficient trading strategies. It does not provide trade signals too often, but rather it produces signals that could result in longer-term trends.

If you would observe the sample trades above, you would notice that the trades lasted quite long, running for more than a hundred candles on each trade. This kind of strategy is one which keeps traders from taking trades too often and allows traders to hold on to trades that resulted in to trends, in spite of the retracements, which are common during trends. This type of strategy allows traders to be more efficient trading the forex market, gaining more pips for lesser trades.


Forex Trading Strategies Installation Instructions

Blade Runner Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex strategy is to transform the accumulated history data and trading signals.

Blade Runner Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this strategy accordingly.

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How to install Blade Runner Forex Trading Strategy?

  • Download Blade Runner Forex Trading Strategy.zip
  • *Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex strategy
  • Right click on your trading chart and hover on “Template”
  • Move right to select Blade Runner Forex Trading Strategy
  • You will see Blade Runner Forex Trading Strategy is available on your Chart

*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.

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