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The Bands Limit GBPUSD H1 strategy, narrow-profile and, as its name implies, is intended for trading on the GBPUSD currency pair. This trading strategy is very easy to use. One of its main advantages is that it does not require much time and perseverance. It takes a few minutes a day for a trader to use it, and its effectiveness, when used correctly, has been confirmed by many traders.
This strategy is implemented using the Bollinger Bands indicator and involves the use of pending limit orders in trading. Most often, in the first hours of a new trading day, it becomes clear whether a limit order is being set for today or not. It is this nuance that allows you to spend quite not a lot of time on this trading strategy.
The principle of the strategy is quite simple - the moment is determined relative to the pronounced trend, inside of which, in the event of a rollback, entry is made in the main direction.
Indicator settings
The Bollinger Bands indicator is set with the following parameters:
- Bands Period: 48
- Bands Shift: 2
- Bands Deviations: 1.75
Conditions for opening long positions
If the conditions are met, and on the rollback of the price, this order has worked at a level not lower than the lower line of the Bollinger Bands indicator, then everything is all right. If the price hooked your order at the moment when the indicator lines moved higher and the order was below the lower border of the indicator, close this deal. In this strategy, it will be considered an erroneous deal.
Conditions for opening short positions
The conditions for sell trades are the same, but with the opposite values.
If the price hooked your SELL Limit order at the moment when the indicator lines moved lower and the order was higher than the upper border of the indicator - also close this deal. It is a mistaken deal.
Stoploss and Takeprofit
The Bands Limit GBPUSD H1 strategy defines clear criteria for setting stop-loss and take-profit.
Stoploss is set at a distance of 330 points from the transaction opening price. Takeprofit is three times the stop-loss and is equal to 1000 points from the deal opening price.
Conclusion
This trading strategy is suitable for people who are unable to devote much time to trading and are looking for less time-consuming trading systems. Also, clear conditions for setting stop-loss and take-profit together with a good risk control system can bring the expected result to the trader.
