Gambit strategy: balance of risk and profit

The Gambit trading strategy is a bold attempt to make maximum profits without losing sight of risk. But I must warn you that, to use it, you will have to be patient, since it may take a long time for all the conditions to be met. The good thing is that this strategy pays off; You can make big profits just by waiting for the right moment without taking extra risks.

The strategy was designed by Walter T. Downs, a dedicated chess player and mathematician, for smooth and lucrative trading on the D1 time frame. But it turns out that it also works on the H4 time frame. With this strategy, you only need one indicator to receive signals to enter the market – Bollinger bands.

If there is an uptrend – you should BUY on reversals from the upper Bollinger line. If there is a downtrend – SELL on the bounces from the lower line.

Sell Signal

The minimum and maximum of the “signal” candles (2) must be located above the minimum and maximum of the previous candles (1).

The closing price of the signal candle must be at the bottom of the candle’s range (it must be a congruent bearish candle)

The central Bollinger line should move down for at least 10 consecutive days.

If all these conditions are met, at the opening of the third candle followed by the “signal” candle (3) we can open shorts. The Stop Loss should be set slightly above the high of the “signal” candle (2). On the fourth day after we open our position, we must place the Stop Loss at the break-even point (the opening point). The trade should be closed when the price crosses the green lower Bollinger line.

Buy Signal

The high and low of the “signal” candle must be located below the low and high of the previous candle.

The “signal” candle must close above the average level of the entire candle range (congruent
bullish) and above the central Bollinger line.

The Bollinger center line should rise over the course of 10 consecutive days.

If all these conditions are met, we enter the market long, at the opening of the next candle followed by the “signal” candle. The Stop Loss must be placed below the minimum of the “signal” candle. On the fourth day after we open our position, we move the Stop Loss towards the break-even point (the opening point). We should close the trade when the price crosses the green upper Bollinger line.