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Trading strategies are one of the most important parts of everyday trading, so it is not surprising that traders devote a lot of time to developing and improving them.
Today, we have a somewhat older trading strategy that, although it is one of the simpler ones, the results it can offer in some instruments are often not even achieved by some highly professional strategies. Therefore, this strategy definitely deserves its recognition.
Strategy input rules (example)
Entering long positions
- Hitting the lower Boolinger band
- Hitting the lower boundary of the Stochastic
Entering short positions
- hitting the upper Boolinger band
- hitting the upper boundary of the Stochastic
How to trade with the strategy
The "Double Hit" strategy is a very simple strategy to understand, where you just have to wait for one of the Stochastic bands to be hit at "one" moment, and additionally for the upper or lower boundary of the Boolinger band to be hit (see chart below). It is then possible to start entering trading positions exactly as described above (Strategy Entry Rules).
With this strategy it is possible to achieve a success rate in excess of 50%. However, the biggest positive for traders here is not the success rate of the strategy, but its lower potential losses, which for some instruments can be as low as a few points.
