Hit and run strategy is often applied as a military tactic, but how if it is applied in forex as a Hit and Run trading strategy?
The Hit and Run trading strategy can be a fun trading method. But it may also be stressful.
On the one side, you are happy to be able to make a small profit repeatedly. But on the other side, mental and personal readiness to face the unpredictable forex market is a challenge in itself.
Hit and Run trading strategy may be very stressful for beginners. So it is not suitable for them. But there’s nothing wrong we trying to learn about Hit and Run trading strategy to add insight into the forex trading strategy.
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Hit and run trading strategy explained
As the name implies, Hit and Run trading strategy literally means “hit and run”. That is, as soon as there are signs of price giving an entry signal, that’s when you are ready to hit.
Also, open positions are usually quite short time. So after finding a floating profit of a few pips quickly close them.
This strategy may only be suitable for those who are ready to spend time in front of a computer screen all day. Or these traders ready to implement this strategy.
Besides that, he must have a strong mentality and be quick to respond in order to be able to make the right entry-exit according to market conditions.
Hit and run candlesticks trading
How to use the Hit and Run trading strategy using candlesticks is to take advantage of signaling by utilizing reversal patterns formed by candlestick pattern formations.
For this purpose, you can again learn about the candlestick reversal patterns that we have written on this site.
The Hit and Run strategy is a trader improvisation to quickly hit after the reversal signal of the candlestick pattern appears, and immediately run after getting a few pips of profit.
Hit and Run trading strategies that are included in short-term scalping trading take advantage of low timeframes such as M5 or M1.
However, it is more convenient to use the M5 timeframe instead of M1 because the candlestick changes do not go too fast.
Paid learning Hit and Run Candlesticks
The Hit and Run strategy using the reversal candlestick explained above is just a basic strategy. It is possible to learn more about Hit and run candlesticks, learn from experts will give more complete trading patterns.
You may be interested in studying in the Hit and Run Candlesticks community, which has over 12 years of experience as a teacher for beginners on how to profit and Hit and Run candlesticks.
But you have to spend some money if you want to study there. And even then, it cannot guarantee that you will become a profitable trader with the Hit and Run trading strategy.
Hit and run a stock trading system
Not only applied to forex trading, the Hit and Run trading strategy is also applied to the stock trading market. One of these strategy gurus who is a seasoned professional in stocks is Jeff Cooper. A western legend who authored a 194-page book about trading with Hit and Run strategy.
The book appears to be on sale on Amazon’s big marketplace with a hardcover in 2004, priced in the $45 range.
Based traders reviews from buyers who have shared their experiences studying the book. This book received a rating of 4 out of all reviews.
Or maybe you can try to download the pdf below.
Hit and run trading EMA and RSI
Although trading using hit and run can only use candlesticks, you can also explore using additional EMA and RSI indicators.
For EMA on a small timeframe can use three EMA with settings 5, 8, and 13. While RSI can use standard settings.
How to trade using the three EMAs and the RSI is to cross the EMA lines in the shortest period to cross the larger EMA.
Make sure that when the EMA crosses, you also need to pay attention to the RSI indicator, and it should have been at overbought and oversold levels.
Since the Hit and Run trading strategy is short-term trading, it’s best to choose the M5 timeframe, in my opinion, this is the ideal timeframe for short-term trading.
Something you need to remember about EMA is to include in the lagging indicator. So maybe the weakness here, the signal appears after the market movement starts to weaken.
Hit And Run Scalping Trading Tips
Below are useful tips for the Hit and Run trading strategy.
Make a Realistic Daily Profit Target
Set your target in a realistic. Even if it’s a little profit, but as long as it’s often achieved, it is more profitable. The targeted profit suggestion is about 5-15 pips per entry.
However, one thing that needs to consider for trading Scalping Hit and Run is the potential for unknowingly overtrading. So will be better to make a clear plan daily.
Choose the Best Trading Time
Choosing the best trading time also contributes to the success of the Hit and Run trading strategy.
Usually, Scalpers will focus on monitoring the market before the opening of the European and United States markets.
At those times, the trading volume that occurs in the forex market is usually high volatility. So when the market liquidity becomes very high and volatility becomes more profitable.
Choose Forex Pairs With High Liquidity
There are many currency pairs in forex. But in choosing pair for the Scalping Hit and Run strategy. You should choose the Major Pair because it has a high level of liquidity.
In addition, the second characteristic of Major Pairs is a relatively stable response to market turmoil.
For this reason, Major Pairs are traded by almost all important banks and institutions around the world. Major Pairs in Forex Trading Although during the European session all currency pairs become very attractive to trade. The most profitable movements are mainly obtained from EUR/USD, GBP/USD, USD/JPY, and USD/CHF.
Some Cross Pairs such as EUR/JPY and GBP/JPY can also be glimpsed because the movement is quite large.
Choose a Broker That Allows Scalping
You must make sure to trade with a broker that allows scalping.
The scalping technique opens and closes a large number of positions. And in a short time becomes inefficient for the broker.
Broker has a reason, these conditions can burden the broker’s server and complicate the risk management of the broker itself.
Therefore, some brokers tend to dislike this method. Because will slow down access to their systems. Or even ban this technique altogether.
Hit and Run trading strategy may not be suitable for everyone. But for traders who have a high passion for developing this strategy, may be able to find a better-improvised strategy by learning from mistakes.
But indeed not all brokers allow trading with the scalping model because it burdens the server.
Note: forex trading is risky, you may lose some or all of your money, invest wisely, obey golden rules, spent money that affords to lose.