The "Sniper" algorithm: how, when, and how much

The "Sniper" algorithm: how, when, and how much

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Any business is built according to a specific project. Also, each trader has an action plan that responds to absolutely all force majeure market situations. In this article, we will tell you what trading plan you should follow when trading using the "Sniper"strategy.

It is important for businessmen to know when to invest, and after a certain time – "remove all the cream" and organize the next business planning. Traders also need to know where to open a trade and how to conduct it until it is closed. To do everything right, you need an action plan that includes all the sequential manipulations in the financial markets. Students of the Forex Academy follow all the rules of such a plan unquestioningly, searching for and identifying the most likely entry points using the "Sniper" strategy according to a certain algorithm of actions. It is these few simple rules and their strict compliance that help our students to increase their account by at least 20% per month in the framework of conservative trading, or to accelerate the Deposit from 50% per month to infinity.

This algorithm of actions is absolutely simple – it is suitable even for those who are just starting their way to financial freedom.

ALGORITHM OF THE "SNIPER" STRATEGY»

Determination of significant levels (TIUS, TIU, URST) and the trend situation (UP, CONSO, DOWN) on TF H1.
Waiting for the moment of touching or BREAKING a significant level (TIUS, TIU, URST) on H1 TF.
Determining the entry point, stop loss, and target levels (the "safe" rule).
Transaction logging (recording each transaction in a diary+screen).

One of the most important components of our algorithm of actions is the entry points and options for maintaining a position until they are closed. Imagine that you have a compass (these are our entry points and position management methods) and a map (other elements of the trading plan), which help you get to the designated place.

How do I determine where to open a trade? Some of you are looking for an entry point using multi-frame analysis (in this case, multiple timeframes are used), some of you are using price channels, and some of you are entering the market based on news data or at trend reversal points. The "Sniper" strategy is not like any other mechanical trading system – it is a method of reading the market, where you, as a trader, will already know in advance what to expect from the price of the traded asset. This strategy is based on technical levels and Price Action. A market made up of buyers and sellers creates meaningful levels of supply and demand that help us put the whole picture together and make the right decision.

There are only two entry points:

Conservative. There is a certain set of mechanical rules that help you find the entry point itself in the end. It all starts with the components of the graphic design and the moment of the price approach to the intended entry point.

Aggressive. These are all conservative rules, but with a certain violation. As for the entry point, it is more related to the price approach.
Such entry points also have a place to be and show themselves well, but statistics on them should be collected in the context of a conservative approach. Those students who have long practiced identifying entry points, without fear of aggressively apply almost every design to turn or continue the movement, matching it with the overall market picture, which, of course, is not possible for a beginner.

There may be many such entry points. Which one should I choose? This question confuses many newcomers to a screeching halt. Let's imagine that we have two entry points for two identical reversal graphic designs. We are faced with a choice: which currency pair to enter into the transaction?
The first thing we need to pay attention to is the bid/ask spread of each currency pair. Since the spread of the first GBPCHF currency pair is 8 points, and the spread of the GBPUSD currency pair is 3 points, it is clear that we will open a position on the GBPUSD pair, where the spread is much smaller. This way we will minimize all overhead costs, and the potential of the final profit will be definitely higher. This will be especially noticeable after making about 500 transactions on the trading account.

The second thing we should pay attention to is statistical analysis.

Statistical analysis helps to understand what formations are usually formed in our trade. The first formation with a probability of formation in 45% of cases will tell us that after each unprofitable transaction, a positive one appears. Trading is not an intuitive activity of speculators, but rather a probabilistic one, so such rules of definition help a lot on the way to becoming a professional trader. In the examples above, we selected GBPUSD for a low bid/ask spread. In this case, according to the graphic design of RU3-2 on the same currency pair, the previous transaction for the same graphic design was unprofitable according to statistics, which will also increase our overall probability of working out a future transaction in plus.

In practice, all students of the strategy "Sniper" develop this statistic, as it is an invaluable material for absolutely everyone.

The advantages of the "Sniper" strategy are not only in its strict algorithm, but also in comparison with entry points for other trading systems.

For example, in comparison with the entry point "failure swing" and "successful swing" of the Dow theory and a breakout of the continuation of the movement with reversal design RU3-2:
This failure swing: the failure of the peak "C" beat the peak "A" followed by the violation of the bottom "B", which is a sell signal in "S". A failed swing is one of the u – turn structures that is formed as follows:
And an example of the formation of a graphical structure on the same chart for a breakdown with the continuation of the movement according to the "Sniper" strategy.
The second reversal signal for a successful swing looks like this, where there are two entry points at points S1 and S2:
Note that" C "exceeds the peak of" A " before "D" falls below "B". For some, the sell signal is "S1", while others wait for the peak to fall in "E" before they start selling in "S2".
According to the "Sniper" strategy, in this case, the entry is the most profitable for us as speculators.

And now an example of entry points in comparison with "Turtle strategy "and" Sniper»:
According to the "Sniper" strategy, in this case, the entry is the most profitable for us as speculators.

And now an example of entry points in comparison with "Turtle strategy "and" Sniper»:
The entry point for the breakout continuation of the movement on the "Sniper" strategy looks much better, and the profit potential (in the same time period) is greater than on the "turtle strategy".

In addition to the entry points that we have discussed, there are also methods for maintaining the position of open trades. But to understand how to conduct a position, you need to know where to place the stop loss and target levels for the "Sniper"strategy.
The figure shows information on setting the loss limit and the nearest target levels for the "safe"rule.

The trader can choose from three options for maintaining open positions.

The first option is to use a hard reference point for both stop loss and target levels, completely ignoring the nearest support or resistance levels:
A real example of maintaining a position for the first option:
The second option is to use the nearest support and resistance levels. In this case, the target level is set to the nearest significant level, which naturally creates an obstacle to further price movement:
The third option for maintaining a position is represented as a movable stop loss level under or above new local price extremes. Giving the trader the opportunity to pick up all the market movement in this way:
The "Sniper" strategy itself is also pursuing strict money management, which eliminates the possibility of losing a Deposit even for a novice.

The main advantage of The sniper system is its versatility and flexibility. "Sniper" is suitable for absolutely any type of trader: positional, medium-term and short-term. You can trade it both aggressively and conservatively, absolutely at any time of the day or night. Security and profitability of transactions – all in one set of clear rules. To get them, watch our webinar. During the broadcast, you will learn how to determine a profitable entry point and place stop loss levels, correctly assess the market situation, and correctly conduct an open position until it is completely closed.

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