BunnyGirl Trading System is Crossover Forex Strategy! When I started trading forex in 2003 I was trying to find reliable and profitable trading systems. I had some technical knowledge due to my stock exchange trading background but forex was different of course. I remember I ended up in a chat room and Bunnygirl (her screen name) was making her calls based on this method. Since that time it is known as the Bunnygirl strategy.
This strategy is suitable for GBP/USD and EUR/USD mostly. You can also try USD/CHF and EUR/JPY. The system is based on 5wma crossing 20wma. There is also some kind of filter to avoid whipsaws. The indicators we will use on charts can be found on all metatrader platforms so there is no need to download extra indicators. I will just give you the template file so that you can easily apply to your charts.
Best time to trade is generally 06:00 GMT – 15:00 GMT. The filter that we are going to use is a 20 pips (20 for EUR/USD and 25 for others) price movement to the direction that we will enter. If we are going long, add spread to 20 pips as well. Have a look at the chart below:
MA crossover value was 1.5512 when it happened. RSI is above 50, both stochs crossed over and pointing up. So our entry point is 1.5540 (1.5512+3pips spread+20pips filter).
Stop loss is the cross but you can use your own judgment according to the pair and trend. Also pay attention to candlestick formations, fibonacci and s/r levels.
You can choose partial profit taking not to miss any big movements. For example if you trade 4 mini lots, 1 mini lot out at +30 (when you have 30-50 pips set stop to 30 pips); 2nd mini lot out at +50 (when you have 50-100 pips set stop to 50 pips); 3rd mini lot out by trailing extreme of previous bar if average length (minimum +30); when you have 100 pips or more set stop to 100 and trail it every 10 pips.
BunnyGirl Trading System additional rules:
-Be careful if there is a strong support(or resistance) nearby.
-Never open a trade in the last 5 minutes of the 30 minute bar. Wait for the next bar to break the lower low (to go short) or higher high (to go long) of the previous 30 minute bar.
- BunnyGirl_Rules_and_FAQ (PDF ebook)