I began my tryst with Forex trading in 2003. Back then, I was always on the lookout of profitable and credible trading systems. Thanks to my stock trading background, I had some degree of technical knowledge yet Forex was certainly different. I can recollect the day when I found myself in some chat room where Bunnygirl (the lady trader’s screen name) seemed to be making calls on the basis of this very method. And thus, came the name BunnyGirl trading strategy.
This strategy will be most compatible for EUR/USD and GBP/USD. However, you may even try it with EUR/JPY and USD/CHF. The trading system has been developed based on the concept of 5wma crossing the 20wma. In fact, there is a form of filter which will help to bypass whipsaws. The very indicators which will be deployed on charts are available on ant metatrader portal. Thus, there is no need to waste time in downloading additional indicators. I am ready to offer you the needed template file that can be applied to your trading charts.
The best time for trading with this strategy is usually 06:00 GMT to 15:00 GMT. About the filter that was mentioned above, we will go for 20 pips (EUR/USD & 25 for any other pair) price movement for the direction we are planning to enter. In case we think of going long, we will add the spread to the 20 pips too. Please see the chart here:
The crossover value of MA was 1.5512 while it took place. RSI seems to be above 50 and both stochs have crossed over & are pointing upwards. Thus, our viable entry point here is something like 1.5540 which means 1.5512 plus three pips spread plus twenty pips filter.
Stop loss can be referred to as the cross. However, you are fee to deploy your very own judgment as per trend and pair. Moreover, be careful of Fibonacci formula, candlestick formations as well as s/r levels.
One may take to partial profit to ensure he does not miss out on major movements. Let’s say, you are trading four mini lots. Of these, one mini lot goes out at around +30 (for 30 to 50 pips, you will set the stop to say 30 pips), the second one at around +50 (for 50 to 100 pips, you will set the stop to say 50 pips) while the third one gets out through trailing the extreme of prior bar (for 100 pips & above, you will set the stop to say 100 pips & trail it each 10 pips).
Additional rules in BunnyGirl system of trading
- Be careful when you see strong support/resistance closeby
- Never open any trade in final five minutes of thirty minute bar. Always wait for next bar. Let it break lower low (for going short) or else higher high (for going long) of previous thirty minute bar.
- BunnyGirl_Rules_and_FAQ (PDF ebook)
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