Let’s review a new trading strategy that you can use on IronTrade at any time. It perfectly works with any asset and is relatively easy to use.
The name of the strategy is Bladerunner. It cuts the price action in two like a blade. You will need only one indicator called EMA (20 period). It is simple because it is applied to the chart, unlike some other indicators that are shown under the chart (like MACD or Stochastic).
Support and resistance levels are also essential to set because you will need to build upon them. Please note that this strategy performance depends on the time of the day!
The logic of this strategy is the following: if the price is above the EMA and aims higher, then we can expect the continuation of the upward movement. If the price is below the EMA and continues to go down, then expect a downward development. The trend reversal can be expected if the price moves around the EMA and the candle closes on the other side of the curve. Treat the EMA level as moving support and resistance levels.
When to open a trade? Well…first, you have to make sure that the price has left the regular range in which the asset was traded for some time. Next, ensure that the price has moved through the EMA level successfully. Not just the candle that closes above or below the EMA, but the price bounces off the said line and continues moving in the same direction. It will be a signal that should be confirmed.
Also, it is very helpful to keep an eye on your trade and make sure that you understand the stop level (i.e., when to close the trade) if a signal to open trade turns out to be false. Of course, it is not essential to use other indicators along with this, but they can be added to decrease the number of false signals.
Finally, we provide a small example of how to use this strategy: after you find an asset that is traded in a certain range for some time, you add the EMA (20) indicator from the settings on the IronTrade chart. Next, just wait when the price moves, as explained above. If the asset price moves out of the range and retests it, you can open an UPWARDS position in case of a bullish trend or a DOWNWARDS position in case of a bearish trend.
That’s it. A very simple and efficient strategy that you can use at any time on IronTrade. Good luck!
