This forex strategy is traded on tunnel bounce signal. It uses ultra tight stop loss (candle range) together with break even condition. This makes it relatively safe to trade in volatile market conditions. To draw a tunnel, envelopes indicator is used.

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Exponential moving averages are taking part in trend identification which improves signal accuracy tremendously.
Forex strategy was tested on historical data since 2003 with positive results. It is brought to you for free together with free expert advisor by theforexkings. Enjoy.
Used tolls and indicators
Exponential moving averages (EMA 500 and 250). Standardly used EMA tandem is used to identify main trend in 1H chart. All trades must be aligned with trend direction. Adjust EMA period to apply strategy on other pairs and timeframes.
Envelopes (period 70, dev 0,1) Envelopes are used as a signal to enter the trade on high/low price. We will be looking for price bounce (price penetrating the tunnel only to close back within it).
Envelopes target Deviation (0,6): W will close our profitable trades at opposite end of a tunnel Adjust the deviation of additional envelopes lines to modify the distance of profit target.
Stop loss and break even condition: Stop loss is placed at last candle penetrating the tunnel. It is placed to break even once the position reaches a desired profit of 50 pips.
Forex strategy rules
SELL

EMA fast trending below EMA slow. Downtrend.
Price penetrates upper BB line only to close back within tunnel. Once it closes, we enter our short trade. Stop loss is placed at the last candle high above the upper envelopes line. It is adjusted to break even after trade reaches profit of: 50 pips
Target profit. Draw additional envelopes line with wider deviation (0,6). Once the price closes below the target envelopes bottom line, we exit the trade at profit.
BUY

EMA fast trending above EMA slow. Uptrend.
Price penetrates bottom BB line only to close back within tunnel. Once it closes, we enter our long trade. Stop loss is placed at the last candle low below the bottom envelopes line. It is adjusted to break even after trade reaches profit of: 50 pips
Target profit. Draw additional envelopes line with wider deviation (0,6). Once the price closes above the target envelopes upper line, we exit the trade at profit.
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Disclaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.