There are 279,000 traders in the Reddit Forex community. Today, I will trade a forex trading strategy from them on my live account, and you don’t want to miss what happens.
I spend a little time in the Reddit Forex sub, laughing at several videos and sometimes looking at different chart setups. However, I took a deeper dive the other day and found a Forex trading strategy that takes only 10 minutes to implement daily.
It’s effortless to use, so I backtested it for three days, making modifications to fit my trading style. I will trade it live and teach it to you in this article.
Reddit Forex Trading Strategy
I put my $50,000 live trading account on the line to entertain you on day one. First, let me teach you how to install this Reddit trading strategy that takes only 10 minutes to enjoy a nice setup.
- Set the time frame to one hour on TradingView, as we’ll be day-trading with this strategy.
- Head to the indicators menu and install the Bollinger Bands. We’ll use it with its default settings.
- Install the Stochastic too.
- Unlike the Bollinger Bands, we need to alter the Stochastic. Double-click it and change the numbers on the “Inputs” tab to 14, 3, and 3.
Now that we’ve installed the indicators, the strategy is pretty simple. We want to see the price move outside the bands and look for an indecision candle for a buy trade.
Moreover, ensure the Stochastic is oversold. Then enter the trade when a bullish move breaks the indecision candle – generally an outside candle or an engulfing candle.
As for the stop loss, I put it below the lowest wave from the indicator and the price of the indecision candle earlier. Very simple to do.
The price smashed my take profit, as shown in the video above. It’s an excellent strategy that works well when the market is ranging.
It’s the exact process when taking sell trades but only reversed.
We look for the indecision candle outside of the wave. Then hunt an indecision candle.
Sidenote: An indecision candle is a small candle that doesn’t close near its highs or lows. Its wicks are typically much longer than its body.
This strategy works well when this indecision candle is outside the bands.
Then, because this is a sell trade, I want to see a bearish engulfing candle. I enter the trade right when that candle breaks the low of the indecision candle, so you can even set a sell stop or buy stop, depending on the trade.
The last confirmation is the Stochastic that should be overbought in this trade. Then we are looking for sell trades.
My sample trade was a solid sell order that went in my direction, smashing the take profit.
I backtested this strategy extensively and can confidently admit it works well.
There was another way to use this strategy on Reddit – they preferred the indecision candle to lie at the Bollinger Bands’ middle line before selling down or buying.
However, my backtesting results show that the strategy works much better when the indecision candle is outside the waves. Hence, that’s the only way I use this strategy (and my modification ensures it fits my trading style).
My Trades With The Free Reddit Forex Strategy
It’s time to show you my trades of the week with this strategy.
Day 1 Trade (Buy)
I took only this trade I’m taking on day one.
The price broke outside of the wave. Then we get our indecision candle before looking at the Stochastic, which was oversold.
The conditions confirmed that we had a buy trade momentum, and in the end, it was an explosive trade that smashed my first take profit. It also hit my second take profit, winning this trade.
You can see I religiously followed the rules of this strategy for it to smash my take profits.
The trade banked me $3800 on the first take profit and $6800 on the second take profit. That’s over $10,0000 from this single trade.
The strategy worked well because it only took a couple of hours, and we’re seeking a 71-pip gain and a 110-pip gain (181 pips), which is fantastic for the first day. It placed me at over $10,000 after day one.
For my stop loss on the trades, I put it below the indecision candles and the bands. For my take profit, I targeted a 1.5 risk-reward ratio on the first and 2.33 on the second.
I exited the second trade manually when the price started to come back down.
Hence, I’m up $10,000+ after day one.
Day 2 Trade (Sell)
I looked at the charts and found a trade setup (I somewhat disliked it).
However, I had an indecision candle with my Stochastic at an overbought level. Hence, I looked for a sell trade.
I expected the price to reverse lower because this is a reversal strategy. Regardless, it was a bad trade in hindsight.
Despite following the strategy, the price smashed my stop loss.
Luckily, I went only with one take profit here because I wasn’t too confident about this move. Hence, I only lost about $2100.
I wasn’t feeling as convinced about this move as I had about others because the indecision candle overlapped the last one. It formed almost entirely within the bands, which I didn’t like.
Hence, I didn’t trade again that day and went to backtest a bit more to improve this strategy before going into my third and last trading day.
Day 3 Trade (Sell)
I placed my third trade using this strategy on the EURGBP (like the previous day).
I did something similar today with a better indecision candle, so I felt more confident. I set my sell stop when the price would break it subsequently.
I had an overbought Stochastic – my final confirmation for a sell trade. My confidence allowed me to set the two take profit levels; the result was fantastic!
The price smashed my first and second take profits.
My stop loss was just above this wick and the band. The take profit for the first was a 1.5 risk-reward ratio, banking me 30 pips. The second was at 2.5, giving me 50 pips.
I like this strategy because it is solid, and you don’t have to spend much time. Just wait for the price to break out; get your indecision candle, and consider taking a trade.
You won’t have many trades if the price isn’t breaking out of the band. However, you can quickly go from one pair to another to see when it breaks. Wait for the Stochastic to give you your confluence. You can place the trade.
Final Results On MyFXBook
The Reddit trading strategy is actually pretty good.
Since we’re at the end of the week, I will show you my verified Myfxbook account to confirm my orders.
Before I show you the results if you are looking for a place to trade, look no further than Hankotrade. It is the number one Forex broker I use on the market today.
On day one, I had a 15 percent gain; I went down to 10.91 percent on day two because I lost a trade. Then day three, I rocketed up to 28 percent.
I won my longs (two) and two of three shorts for a 4/5 win rate (80 percent). I banked $3,800 from my first take profit in 36 minutes trading the GBPCAD. I made even more ($6200) in 1 hour and 10 minutes for about 180 pips. Absolutely awesome.
On the first day, I knew I loved this strategy immediately after I traded with it.
Then for my second live trade, I lost it (-20 pips). It took about 2 hours and 30 minutes. It wasn’t good trade, and I felt it coming by disliking the indecision candle and not feeling the price action. I probably should have avoided it.
However, on my third day, we had the trade I just showed you – the EURGBP sell order. It took about 3 hours and got me $4300.
Then it took another 48 minutes to get me another $7369 with around seventy 78 pips.
The Reddit trading strategy was phenomenal, and it’s one I think you really should try alone.
All you need to understand is the indecision candle and how to install a couple of indicators, and you can use this to grow your trading accounts.
Regardless, if you want to grow your trading accounts another way, consider joining my free Telegram group. We’re going for our 10th straight winning month in a row.
We’ve made some interesting adjustments to the group and are a free copy trader.
You can also use this free forex bot I highly recommend for stress-free trading.
Don’t worry if you’re not interested in that. Share this article everywhere and comment below if you have any questions or suggestions.