Fortunately, when this strategy wins, it more than makes up for the small losses by hundreds of pips (see the example below). But this is also the downside to these pairs, because you can get whipsawed a lot if you don't wait for a big candle before entry. This strategy has worked best with GBP and JPY pairs so far, since they are so volatile. When the candles are small as they go through the tunnel (the area between the EMAs), I tend to get whipsawed a lot, so I try to avoid entries when the candles are small. This strategy seems to work best when a big candle moves through the EMAs fairly quickly. This avoids the big losses and the colossal waste of time waiting for price to come back to avoid the big loss, which I have done a time or two in the past, and sometimes price will not come back for many years, if ever. While I have posted about setting 1,000 pip SL's in the past, now I would rather get out of a trade very quickly, with the mindset that I can always re-enter later.

Then I re-enter when it goes through one of the EMA's again. When this happens, I set the SL at about 10 pips, but I usually exit the trade before it hits the SL if price goes against me right away. I set the initial SL at the opposite EMA, which is usually less than 10 pips away, but when the EMA's are within a pip or so of each other, they are untradeable. I go long with five different one-micro-lot trades when price moves up through the top EMA and go short when price moves down through the bottom EMA (actually, I use additional lines that surround the EMA's, but I'll explain those in a minute). This strategy uses two EMA's set to 144 and 169, and targets set to 34, 55, 89, 144, 233, and 377 pips away from the EMAs.

Close one of the five positions as price crosses each of the other lines.

Enter 5 trades when price crosses the EMA's.

It's called the 'Vegas Tunnel' and works best (for me) on the 1-hour timeframe.

I also wanted to share a strategy with anyone who may be interested, and the way I trade it. Today, I finally got funded! Woohoo, I think I'll do a jig. Finally got funded!!! And a strategy that works for me.

Vegas tunnel trading