FX TRADING STRATEGY
therefore be between 15 and 60 points. Of course, the SwissBox strategy achieves the best results with high volatility, so we do not have to wait long for a breakout. We are looking for markets with an average daily volatility of around five times the minimum box size. We focus on the largest and most volatile markets. In the FX area, we are focusing primarily on the major currency pairs as well as EUR/JPY and GBP/JPY. In the equity markets, we limit ourselves to the DAX and FTSE.
Dax market opening Figure 1: DAX 30 trade example, 30.01.2018
triggers a new, larger trade (see formula below) in the opposite position. If the first position triggers a buy order, we now go short with an even larger order and vice versa.
Using the SwissBox, you first determine the desired profit and the acceptable risk before each trade. Te algorithm calculates the necessary position size from this. Te multiplier shows us how
Source: TradersClub24
much the position is building up with several trades.
Multiplier for the 2nd position = [risk (%) / profit (%)] +2
Multiplier from 3rd position on = [risk (%) / profit (%)] +1
As a rule of thumb for the minimum box size, we recommend 15 times the spread. In practice, the box should
We trade the SwissBox daily from 8:54 a.m. and looking forward to rising volatility in the Dax market due to the start of trading at the Frankfurt Stock Exchange. Whether the price rises or falls is irrelevant for our strategy. We benefit alone from the volatility. Te start of trading in Frankfurt is always a safe impulse for us. We document the success of SwissBox in our unique online video diary. Every morning. For over 460 trading days in a row.
Figure 2: Formation and Activation 36 FX TRADER MAGAZINE October - December 2018
Aſter the opening of the Dax we have to be more flexible and recognize new breakout situations. Te good news first: In a statistically completely chaotic financial market, new chart formations are constantly emerging. Our specially developed algorithm, called
TC24.BlueBox, uses statistical data such as volatility and a mean-reversion approach to identify a range with an equilibrium in the price trend. More precisely, we look for the center of balance. Bruce Lee said “Be water, my friend” to
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