HIT & RUN FOREX TRADING STRATEGY
Using SMA (50) and the Parabolic SAR to scalp EURUSD and GBPUSD on M1 timeframes
■ Style: Scalping Strategy
■ Name: Hit & Run Forex Trading Strategy
■ EUR/USD best (and GBPUSD)
■ M1 timeframe (1-Minute)
■ 30 daily trades on average
INDICATORS & SETUP
This strategy uses the Parabolic SAR and a simple Moving Average (SMA):
■ Parabolic SAR (default) settings:
- Acceleration 2%
- Maximum Step 20%
■ Simple moving average (SMA)
with settings: 50 periods
This is how you may implement the Hit & Run Strategy:
-The SMA is used for trend identification while the Parabolic SAR is used as a trigger:
-The Parabolic SAR is providing the entry signal.
■ (↑) Long Trades
-When the rate of EURUSD is above the SMA (50) then the momentum is considered bullish and we prepare a Long (bullish) trade.
-When EURUSD moves above the Parabolic SAR is the trigger of a Long trade.
■ (↓) Short Trades
-When EURUSD is below the SMA (50) we prepare a Short (bearish) trade.
-When EURUSD moves below the Parabolic SAR then this is the trigger of a short trade.
Here is how we set our trades using the Hit & Run Strategy:
■ Take Profit: 8-10 pips
■ Stop-Loss: 12-15 pips
■ Profit/Loss Ratio: 0.67
Note: On a very volatile session such is the EURUSD session presented on the chart you may use higher take-profit levels or even trailing stop-loss orders.
CHART: Hit & Run Forex Trading Strategy
■ Hit & Run Forex Trading Strategy