Even the best online gold forex traders need a good strategy, and one of the best ones out there is the BladeRunner trade. The blade runner strategy is formed on the basis of price action, meaning that it finds entries using pure price action. The only indicator that really needs to be used with this strategy is an on-chart indicator. Off-chart indicators can be useful and if you wish to take advantage of them then go ahead, but it’s not strictly necessary. For the purpose of this strategy guide the indicator used is the 20 EMA (exponential moving average).
Why is it called the BladeRunner Trade?
Apart from the fact that it is a name that is exciting and a little bit dangerous and recalls the 1982 Harrison Ford movie Blade Runner, there is actually a more practical reason for the naming of this strategy. Price is divided as a result of the 20 EMA acting as a knife edge, hence the word blade.
Top Tips for Using the BladeRunner Trading Strategy
1. The trend of the trade is determined by which side of the EMA the price falls on. This is the direction that you should aim to trend it. It won’t do you any good to fight against the trend.
2. This strategy is quite susceptible to changes especially when referring to lower time frames. It’s highly important that you are vigilant and keep your eagle eye out and ear to the ground for any fast developments. It’s a good idea to know when news reports regarding your trade will be broadcast and always wait at least 20 minutes after the report before you consider trading again. Never make a trade just before an announcement is to be made.
3. One reason is not enough for you to take the risk and enter a trade. You need to have at least a few solid reasons in your back pocket before you make this big decision. Pay attention to the price impact points such as the pivot level. If you find a rejection from the 20 EMA this should be placed as near to the price impact point as possible.
4. If you are looking for a greater level of flexibility regarding your exit then it is a good idea to split your trade across at least two positions on the board. However if you are looking for a simple trading strategy you would be probably be better off only entering one per trade.
In order to test out the BladeRunner strategy and determine if it makes sense for your arsenal, try opening a demo account for online gold trading.
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