The idea behind this trading strategy is: the bars per day can move around 100 pips, the candle will catch a small portion of this movement. The way of trading is also quite simple, we trade when the price breaks the high or low price of the previous candle.

Now let's get into the rules of the transaction.

Note when using the strategy:
  • Currency pairs: any
  • Time frame: D1
  • Technical indicators: not required
Before you get to grips with the trading rules, you should not trade if a break occurs during the Asian session. Why? Because it often has low trading volume and lacks the motivation needed for the price to move strongly.

But if a break occurs during the European session, it is more likely that the price will continue to move in the direction of the breakout.

You see the picture below:


Trading principles for buy orders:
  • Place a buy stop order 2-3 pips away from the highest price of the previous candle on frame D1.
  • Place stop-loss order about 20 pips.
  • The take profit target is also around 20 pips.
  • Repeat this process the next day.
Trading principles for sell orders:
  • Place a sell stop 2-3 pips away from the highest price of the previous candle on frame D1.
  • Place stop-loss orders of about 20 pips.
  • The take profit target is also around 20 pips.
  • Repeat this process the next day.
Advantages of this strategy

This strategy is very simple, easy to use. It takes less time to monitor the market and trade. Every day we only need to pay a little attention to the time of a breakout to participate in trading.

This strategy is also suitable for traders who do not have much time to check the chart.
The chances of getting a profit are quite high, although 20 pips a day is not a big number if during the trading month most of the orders are profitable 20 pips is quite good.

This strategy does not take time to analyze, it has a transactional principle, we just need to apply.

The downside of this strategy

During a period of time of low volatility and breakout signals, but sometimes it will go against your trade causing you to stop losing.

The risk: reward ratio is 1: 1, which can show that this strategy has a bad ratio. But because of its simplicity and consistency, ease of use can make many traders love this strategy.