Description:
The Forex strategy known as "10 Points on EURUSD" has several variations, closely resembling the Session Breakout approach. Many seasoned traders swear by it, and when paired with solid money management practices, it can lead to impressive trading outcomes.
Here's the crux of the strategy:
The strategy hinges on breaking through the high and low price points from the previous trading day. Most traders believe that if the previous day's high is breached, the price will trend upwards; conversely, if the previous day's low is broken, the price tends to dip. Additionally, these two extremes serve as stop-loss levels for many traders.
Thus, when the price breaks below the previous day's low, stop-loss orders will be triggered, leading to a continued price movement in that direction for several points.
The same applies to the high, but in the opposite direction.
Using these insights, we aim to profit by placing a buy order after a breach of the previous day's high, and a sell order following a breach of the previous day's low.
However, it’s worth noting that some Forex traders utilize these two points as support and resistance levels, meaning the price won’t always move in the direction of the breakouts. This highlights the importance of implementing fixed stop-losses.
Remark:
The recommended currency pair for this strategy is EURUSD.
Pending orders are valid from 00:00 (GMT) today until 00:00 (GMT) tomorrow.
1. At 00:00 (GMT), set two pending orders: one buy order at previous day high + 2 pips and one sell order at previous day low - 2 pips.
2. Set Take Profit at 10 pips.
3. Set Stop-Loss at 5 pips.
4. Important: Only trade on the first crossing of the high and low prices during the trading day. If your pending orders are closed today due to hitting SL or TP, refrain from trading further on that day!
Image:
Recommendations:
For each trade, the risk should be between 2% and 5% of your account balance.
Give it a try and share your feedback!
It's best to test this strategy using daily charts and all ticks (the most accurate method).
Here are the testing results for the period from 01.01.2009 to 30.11.2009 on EURUSD DAY ALL TICKS (the most precise modeling...)
Editor's Note:
Keep in mind that this content is a reflection of the original Russian version.
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