Create me a simple day trading strategy in Forex that can pass a prop firm challenge. The prop firms rules are 6% drawdown and 8% target goal. I would like to strategy to be a mechanical and not using any indicators.

Creating a simple, mechanical day trading strategy for Forex that can potentially meet the criteria of passing a prop firm challenge involves developing clear rules for entry, exit, position sizing, and risk management. Here’s a basic strategy devoid of indicators, focused on price action and market structure: ### Forex Day Trading Strategy #### Objective: - **Max Drawdown:** 6% - **Target Profit:** 8% #### Market Conditions: - Focus on major currency pairs (e.g., EUR/USD, GBP/USD, USD/JPY). - Trade during high-volume hours (e.g., London and New York sessions). #### Trading Rules: 1. **Timeframe:** - Use the M15 (15-minute) timeframe for entering and exiting trades. 2. **Session Opening:** - Begin trading at the opening of either the London or New York session. 3. **Trade Setup:** - **Breakout Strategy:** - Identify the high and low of the first hour of the trading session (typically 08:00 AM to 09:00 AM GMT). - Place a pending buy order 5 pips above the high and a pending sell order 5 pips below the low. 4. **Position Sizing:** - Calculate your position size based on the distance to your stop loss to ensure that you do not risk more than 1% of your account on any single trade. - For example, if you have a $10,000 account, your maximum risk is $100. If your stop loss is 20 pips, your position size would be calculated accordingly (1 lot = $10 per pip). 5. **Stop Loss and Take Profit:** - **Stop Loss:** Set a stop loss at the opposite breakout level (for a buy, this is the established low; for a sell, it is the established high). - **Take Profit:** Set your take profit at a level that is at least double the distance of your stop loss. This helps ensure a favorable risk-to-reward ratio (e.g., if your stop loss is 20 pips, set your take profit at least 40 pips). 6. **Exit Conditions:** - Close the trade at your take profit level or when the stop loss is hit. If the price action moves significantly in your favor (e.g., 1:1 risk-reward is reached), consider moving the stop loss to breakeven if conditions allow. 7. **Daily Trading Limit:** - Limit yourself to 2 trades per day to avoid over-trading. - If you reach a 3% drawdown, stop trading for the day to reassess the market. 8. **Session Close:** - Avoid holding trades overnight unless a significant move is confirmed. Close all positions by the end of the trading day. ### Risk Management: - Stick to the 1% risk per trade to maintain capital and stay under the drawdown limit. - Monitor your total exposure to ensure you don't breach the 6% drawdown limit. ### Additional Considerations: - Keep a tight trading journal to track your trades, entry and exit points, and the reasons for your decisions. This will help you evaluate and adjust your strategy based on real performance. Remember, while this strategy lays out a mechanical approach to day trading, rigorous back-testing and forward-testing in a demo account are essential before applying it in a live trading environment. Continuous improvement and adaptation to market conditions are key to long-term trading success.