I welcome my readers!
Today, I will explain how to trade in the foreign exchange market with an original and successful trading strategy “24 hours”
The article covers the following subjects:
Why is the “24 hours strategy” profitable?
This forex trading strategy is my own original forex system. You won’t find it anywhere except for the LiteFinance trader blog. I have been employing this strategy for more than two years, and it hasn’t ever failed. I am perfectly sure that it is a winning trading strategy, although it is quite simple. It will be suitable for all investors, both expert traders and beginners. Familiarize yourself with a unique author’s trading system.
The strategy is based on two essential parameters in Forex trading, time and probability. Differently put, it increases the probability of a win as the time spent on trading increases. Any other Forex strategy does not relate to time. Your profit does not depend on how much time you spend on trading, a day or a week; it depends on the price movement. The strategy covered in the article implies that the chance of making a profit increases with each new day. The more days pass, the higher is the chance that you will make a profit on the next day.
What and When? Trading instruments, time and limits.
The strategy has a number of strict limitations, which must be observed. I will cover the rules and restrictions below.
Important! You can use this strategy only in trading major currency pairs!
There are only seven currency pairs suitable for this strategy. Other currency pairs will not suit due to the big difference in the yield ratios. The pip value for all traded pairs must be roughly equal.
Important! You can enter trades only from Monday through Thursday. You should not trade from Friday through Sunday.
There are very often price gaps at the trade opening after the weekend. The price gaps are contraindicated for pending orders, and indeed for any orders, as they may work incorrectly. However, the whole system is based on orders, so potential gaps must be eliminated.
How to trade with Forex strategy “24 hours”
So, we have defined the range of trading instruments. Now, we can start trading.
It is clear from the above chart how your EURUSD trades will look. Now, let me explain all trades in detail:
1. Well, there is the first trade, which is marked by SELL 1 in the first figure. First of all, you should determine the time when you will enter and exit trades. There are different time zones, and you can choose any time. The most important is that the trade should be held for no more than 24 hours. You should enter the trade at the same time every day. I prefer to open a position at 08:00 GMT.
2. Now, it does not matter where the price is, what color the candlestick is. So, do not analyze other parameters, enter a trade precisely at this time.
3. Set the same Take Profit and Stop Loss for each trade. Take Profit and Stop loss values will be 500 pips each (for a five-digit quote).
4. Irrespective of the deposit amount, the initial volume for the first trade will always be 0.01 lots. Why is it initial? It is because, with each new UNREALIZED trade, this volume will be increasing.
5. Now, determine the trade direction. It does not matter whether you buy or sell. But there could be only one direction for each currency pair. Differently put, if you are going to open a series of 5 EURUSD positions, all five should be in the same direction, for example, sell.
6. We enter a EURUSD sell trade at 8:00; the take profit and stop loss are 500 pips each.
7. The target is to close the position with a take profit. If the take profit doesn’t work out during 24 hours or the position is closed with a stop loss, the series should continue.
8. In our case, the price hasn’t reached the levels of protective orders during 24 hours. So, at 8:00 a.m. on the following day, we close the position manually, irrespective of whether there is a profit or a loss. In the example, we have a loss of 53 pips or 0.53 USD. Therefore, the trade was losing, and the series continues.
9. The first trade is exited manually at 8:00. Now, immediately after the closing of the first position, we open the second one at the same time. Thus, it is again the EURUSD sell trade with the same levels of stop loss and take profit orders.
10. However, the trade volume now is 0.02 lots, not 0.01 as before.
11. In 24 hours, the trade hasn’t worked out, and we close it with a loss of 244 pips or 4.88 USD at 8:00 on the next morning.
12. The trade series continues.
13. The third trade in the series is again a sale entered at the moment when the previous one is closed. The trade volume is now 0.04 lots. You have probably noticed that the volume is increasing exponentially. At the end of the article, I will write the complete grid of orders with volumes.
14. Well, in three days, there is a profitable trade at last. As you see, the price goes down, and the trade closes with the take profit with +500 pips or 20 USD. The profit yielded by the third trade has covered the loss from the losing trades in the series. That is the principle of the strategy.
15. At 8:00 the next morning, we need to open the next position. Important! After we completed a series of trades for one currency pair successfully, we start a new series for another pair with the initial volume of 0.01 lots.
16. Let us take the GBPUSD pair, for example. Let it be a sell trade again. We set the take profit and the stop loss of 500 pips each, select the trade volume of 0.01 lots and wait.
17. There is a surprise. The series has turned out into a success with the first trade. The position is closed with a take profit, yielding a gain of 500 pips or 5 USD.
18. The series has finished. So, we shall start a new one at 8.00 next morning. We again change the currency pair. The trade volume is again 0.01 lots. Choose the trade direction and enter trades according to the same principle.
19. That is the “24 hours” strategy!
Now, let me give you a few tips, as I have promised. Do not use the same currency pair frequently. You’d better go through the series, trading all relevant currency pairs in turn. If you first traded the EURUSD, you should use this pair again only after six series for other pairs. Do not increase the volume to critical values. There can be no more than ten trades in a series. In terms of volumes, it looks like this: trade number 1 — 0.01 lots, 2 — 0.02, 3 — 0.04, 4 — 0.08, 5 — 0.16, 6 — 0.32, 7 — 0.64, 8 — 1.28, 9 — 2.56, 10 — 5.12. If the series has not yielded profits after the 10th trade is closed, finish this series and move on to a new one, trading another pair.
That is all for today. Try trading with this strategy and share the results in the comments. If you still have any questions, write them in the comments, and I will be glad to answer. I wish you success in trading!
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Useful links:
- I recommend trying to trade with a reliable broker here. The system allows you to trade by yourself or copy successful traders from all across the globe.
- Use my promo code BLOG to get a 50% deposit bonus on the LiteFinance platform. Simply enter this code in the appropriate field when funding your trading account.
- Telegram chat for traders: https://t.me/litefinancebrokerchat. We are sharing the signals and trading experience.
- Telegram channel with high-quality analytics, Forex reviews, training articles, and other useful things for traders https://t.me/litefinance
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2014/65/EU.
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