Advanced limit order swing trading strategy
So if you haven't read my other writeups first, you probably should. Non-speculative limit orders are the basis for this trading style.
Now, the idea behind this system is simple. You're using a script, EA or bot to create dozens of limit orders very quickly, with predetermined stop losses and take profits, to capture swings against active trends.
See a trend. Any trend. Are the candles going up? It's an uptrend. Are they going down? Downtrend.
In this trend, you want to identify momentum candles that have a wick. I'm not talking about hammers, I'm talking about candles that close with momentum in the direction of the trend, but just happen to have a wick that's at least 5% the length of the candle body. When you see this, you're going to place a limit order cluster above (or below) that wick to counter-trend it. As the trend continues upward, you might see more wicks like this, and you're going to do it again. And again. And again.
The pic above shows an 18 pip range of limit orders getting filled, with limit order grids being stacked on top of wicks. This can definitely be considered Martingale-like, so you obviously want to be careful with how much you're risking.
If 12 orders are each valued at 0.01, and your stop loss and take profits are both set to 30 pips, then that means each individual limit order is worth $3 and totals to $36 profit or loss. Your take profit structure can be greater or lower than the 1:1 ratio, as this is just an example and it's something you would have to backtest and figure out for yourself.
However, stacking grids to catch a swing can be highly rewarding. It's possible every ticket of your lowest grid hits its SL (although I'd say pretty unlikely as long as you're spacing is good for the currency pair), but every grid you stack up on top of that will greatly increase your odds of winning.
https://i.imgur.com/SlbdVYL.png
https://i.imgur.com/lws6qlq.png
This is how it would look in practice. The limit orders are based off of these wicks:
https://i.imgur.com/eMSharg.png
Every time I see a wick in that uptrend, I'm selling into it. My limit orders start 5 pips away from the top of the wick. I click "Sell limits" and I'm ready to go. I'll leave a link to my EA (for MT5) at the bottom.
I cannot stress enough that you would have to really backtest this and get comfortable with whatever currency pair or asset you're trying to trade, because it's important. And always bet small when you do this! This is about trying to make money regardless of market conditions, not trying to bet big and win big. If you have a $1000 account, maybe risk $20 per grid (grid meaning every individual cluster of limit orders). No one can tell you how to manage your risk obviously, but losing shouldn't be a big deal.
My MT5 EA: mega.nz/folder/Ulsx3CLA
My settings for a 3 minute EUR/USD char
Now, the idea behind this system is simple. You're using a script, EA or bot to create dozens of limit orders very quickly, with predetermined stop losses and take profits, to capture swings against active trends.
See a trend. Any trend. Are the candles going up? It's an uptrend. Are they going down? Downtrend.
In this trend, you want to identify momentum candles that have a wick. I'm not talking about hammers, I'm talking about candles that close with momentum in the direction of the trend, but just happen to have a wick that's at least 5% the length of the candle body. When you see this, you're going to place a limit order cluster above (or below) that wick to counter-trend it. As the trend continues upward, you might see more wicks like this, and you're going to do it again. And again. And again.
The pic above shows an 18 pip range of limit orders getting filled, with limit order grids being stacked on top of wicks. This can definitely be considered Martingale-like, so you obviously want to be careful with how much you're risking.
If 12 orders are each valued at 0.01, and your stop loss and take profits are both set to 30 pips, then that means each individual limit order is worth $3 and totals to $36 profit or loss. Your take profit structure can be greater or lower than the 1:1 ratio, as this is just an example and it's something you would have to backtest and figure out for yourself.
However, stacking grids to catch a swing can be highly rewarding. It's possible every ticket of your lowest grid hits its SL (although I'd say pretty unlikely as long as you're spacing is good for the currency pair), but every grid you stack up on top of that will greatly increase your odds of winning.
https://i.imgur.com/SlbdVYL.png
https://i.imgur.com/lws6qlq.png
This is how it would look in practice. The limit orders are based off of these wicks:
https://i.imgur.com/eMSharg.png
Every time I see a wick in that uptrend, I'm selling into it. My limit orders start 5 pips away from the top of the wick. I click "Sell limits" and I'm ready to go. I'll leave a link to my EA (for MT5) at the bottom.
I cannot stress enough that you would have to really backtest this and get comfortable with whatever currency pair or asset you're trying to trade, because it's important. And always bet small when you do this! This is about trying to make money regardless of market conditions, not trying to bet big and win big. If you have a $1000 account, maybe risk $20 per grid (grid meaning every individual cluster of limit orders). No one can tell you how to manage your risk obviously, but losing shouldn't be a big deal.
My MT5 EA: mega.nz/folder/Ulsx3CLA
My settings for a 3 minute EUR/USD char
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.