The Bladerunner Trade is a simple yet effective trend-following strategy based on the 20-period Exponential Moving Average (EMA). It helps traders identify trend breakouts with high accuracy, making it ideal for beginners. Best suited for M30-H1 timeframes, it relies on EMA confirmation, support/resistance levels, and breakout patterns.
How the Strategy Works
The strategy operates through four key steps:
- Breakout from the Consolidation Zone
- The price breaks through the support/resistance of a range, signaling the start of a new trend.
- Confirmation with Breakout Patterns
- Look for a sequence of three or more candles moving in the breakout direction.
- Break of the 20 EMA
- Once the price breaks out, the candles must close above or below the EMA (20), confirming trend momentum.
- Retest of the EMA
- Price pulls back to touch the 20 EMA, bounces off, and continues in the trend direction.
Risk Level
- Low to moderate. The strategy uses multiple confirmations, reducing false signals. However, false breakouts can still occur.
Reward Ratio
- 30-50 pips per trade, often closed using a trailing stop for maximum gains.
Trade Duration
- Typically intraday trades on M30-H1 charts, ensuring low swap costs.
Entry & Exit Points
✅ Entry:
- Open a position after price retests the EMA and resumes the trend.
❌ Exit Options:
- Partial take profit at 30-50 pips, securing the rest with a trailing stop (15-20 pips).
- Exit when a new consolidation phase forms.
- Close the trade if price crosses the EMA in the opposite direction.
Pros & Cons
✅ Pros:
- Clear signal logic combining trend breakouts and moving averages.
- Works well for beginners, offering high probability trades.
- Effective in trending markets with minimal monitoring.
❌ Cons:
- Market conditions vary—EMA (20) alone isn’t always reliable.
- Customization is needed for different timeframes and assets.
- Rare signals—not ideal for high-frequency traders.
Final Thoughts
The Bladerunner Trade strategy offers a structured way to capture strong trend movements with clear entry/exit rules. While effective, traders should adapt it to different markets by experimenting with EMA settings and additional indicators. Always backtest before live trading.
