Blade Runner Strategy

Posted By Darren Winters on Nov 29, 2019

Blade Runner Strategy

The Blade Runner trading strategy is one of the most reliable techniques of spotting the best entry/exit points in a trade.

What is the Blade Runner trading strategy?

The name Blade Runner was coined by Ridley Scott’s sci-fi classic Blade Runner, a futuristic fictional movie of a world increasingly dominated by artificial intelligence.

The name Blade Runner trading strategy was then adopted in Forex technical analysis.

The strategy relies heavily on the position of market prices relative to the historical averages

Blade Runner Strategy

The main advantage of the Blade Runner trading strategy is that it does not require the use of off-chart technical indicators including MACD and the Stochastic Oscillator, so implementation can be easy.

Signals generated by the Blade Runner strategy are based on pure price action, which means that the use of support and resistance levels, pivot points, and candlestick formations for finding new trading opportunities. As explained above, off-chart indicators are not needed. However, that can also be added as a source of additional confirmation to support a trading decision. 

Blade Runner Strategy uses a 20-period exponential moving average (EMA) or the middle line of the 20-period Bollinger Band

Time frames can also change, but most traders believe that the strategy performs at its best with short-term charts as it provides signals for quick entries and exits. 

The term “Blade Runner” is used because the EMA (or Bollinger Band middle line) dissects price activity and gives a reference point for the trading signals that are sent.

When does the Blade Runner Strategy give trading signals?

Trading signals are sent when prices decisively trade above or below the EMA and then test the EMA on more than one occasion.

What are the rules for bullish entry using the Blade Runner Strategy?

Look for price action which moves convincingly above the 20-period EMA. The prices should then test EMA from above on numerous occasions. Prices enter a period of consolidation and then finally break back convincingly above the EMA. Trades are closed when prices decisively fall below the EMA.

Conversely, what are the bearish entry rules using the Blade Runner Strategy?

The opposite of the above. So price action moves convincingly below the 20-period EMA. Prices should then test EMA from below on numerous occasions. Then there is a period of price consolidation. Prices then finally break back convincingly below the EMA.

Finally, trades are closed once prices convincingly rise above the EMA.

The Blade Runner Strategy is one of the most reliable techniques used by traders to spot the best entry and exit points for trading opportunities

By relying solely on the Blade Runner Strategy, traders can eliminate a lot of subjective factors.

Blade Runner Strategy can be applied to trading currencies, commodities, stocks and also  cryptocurrencies. If fact, the Blade Runner Strategy is being used to design crypto bots where Artificial Intelligence and not carbon based traders are executing trades.

For more tried and tested trading strategies to get your trading on the right footing click on The Investment Home study course.

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