Bladerunner is a very popular strategy using the Exponential Moving Average indicator
What is Bladerunner Strategy?
Bladerunner is a very popular strategy using the Exponential Moving Average – EMA indicator. Bladerunner fits all time slots and couples and the goal of this strategy is to benefit from breakthroughs in continuity and trading retests. Liquidity is very important for this strategy. Some traders claim that Bladerunner’s strategy is the best and the simplest strategy for Forex. The only technical indicator we use for this strategy is the 20-period Exponential Moving Average (EMA). Bladerunner fits all time slots and currency pairs. For our example below, we select a 15 minute USDJPY chart.
How does Bladerunner work?
The name of this Forex strage is based on the fact that the 20 year Exponential Moving Average – EMA cuts prices into two parts as a razor. If the price is over the Exponential Moving Average and the retest is likely, the market is likely to continue to grow. More precisely, our bias will take a long position, so we will assume that the price falls to Exponential Moving Average, bounces off, and continues up. But if the price passes through the Exponential Moving Average and closes below it, it may indicate that it has changed its polarity while our bias has changed into a short position. Otherwise, it works the same way. So when the prize is under the EMA and the retest is over, it looks like the market will go down.
What is a retest?
If the forex index touches the average, we are waiting for a retest. Retest means that the following values go the same way back from where they came from. If the EMA average is exceeded, the polarity changes and the retest failed.
How to successfully is Bladerunner strategy?
For a higher strategy success, choose a steadily rising or declining trend and wait for a buy signal (or sale). When touching the top (or bottom) diameter, wait for the retest and observe the pointers that confirm the presumption of trend index return.
Use at least 2 to 3 pointers in turn to make sure the retest succeeded.
Do not invest prior to reporting important messages. Use an economic calendar to determine the date and time of news announcements and make a purchase or sale 15 minutes after the message is deleted. Market movements are characterized by greater volatility and less predictability.
Set the automatic position closure in the case of a loss of a very small shift in the event of a poor retest estimation.