The BOS Trading Strategy is among the strongest strategies that are included in Smart Money Concepts (SMC) trading. BOS means Break of Structure, indicating to traders when the market is shifting direction or continuing along its existing trend.

Best Demo Practice Broker for BOS Trading

To Practice Your BOS Strategy, you should use a demo trade.

Here’s a List of The Best Brokers for demo traders:

1. Exness: Fast Execution; Very Tight Spreads; Best for Mobile Traders.
2. HFM: (HotForex): Stable Demo Environment; Multiple Leverage Options.
3. AvFX Capital: A Beginner-Friendly Platform; Smooth Demo Trading.

Be Sure To Always Master the Basics of the B.O.S. (Before Live Trading)!

What is BOS Trading? (Break of Structure Explained)

When the market has a higher high (HH) and a higher low (HL), we refer to this as an Uptrend. A downward-moving market has lower lows (LL) and lower highs (LH).

How to Interpret Break of Structure (BOS)

BOS has two meanings:
Bullish BOS: A breakout of the last Lower High (LH).
Bearish BOS: A breakout of the last Higher Low (HL).

These breakouts indicate that institutional investors or ‘smart money’ is entering the market.

Smart Trading BOS – Why Institutions Use BOS

The trading patterns of so-called “smart money” are not performed randomly. Institutions have the following traits:

Disrupt/Break Structures

Create Liquidity

Enter Trades After Receiving Confirmation on an Entry Idea

A Break Of Structure (BOS) is therefore a form of confirmation, rather than prediction.

This gives the BOS strategy its high-probability nature.

Advantages of the BOS Trading Strategy

Defined Entry and Exit Points

Can be applied throughout all Time Frames

Great for Traders Who Use Mobile Devices

Sustained High Win Rate When Used With Proper Confirmation

Best Time for BOS Trading Strategy

In BOS trading, the value of timing cannot be overstated.

The best trading sessions will typically be during:

The London Session (12 PM – 5 PM PKT)

The New York Session (6 PM – 11 PM PKT)

The best time frames for trading:

H1/H4 for structure

M5/M15 for entry (Mobile-friendly)

When trading BOS, you should always avoid:

Low-volume Asian session

Before high-impact news

Full Explained BOS Trading Strategy

Determine the market structure by identifying the highest and lowest recent prices, then determine if the trend is bullish or bearish.

Wait for a breakout of structure (BOS) to confirm the trend. A bullish breakout occurs when the previous lower high is broken. A bearish breakout occurs when the previous higher low is broken.

The next step is confirmation of the breakout. Look for a retest of the BOS level, create a fair value gap (if you wish), and close a strong candle.

The entry point will be when a bullish breakout is confirmed by the retest. The entry point for a bearish setup will be when a bearish breakout has been confirmed by the retest.

Finally, set a stop loss below or above the market structure and select a take profit target of either the next liquidity zone level or 1:2 RR minimum.

📱 This setup works really well with the MT4 and MT5 mobile applications.

Final Thoughts on BOS Trading Strategy

The BOS trading strategy is a highly reliable smart money concept that works well for both new and experienced traders alike; it has a very clear structure, confirms your decision, and guides you in the right direction. This makes the BOS trading strategy one of the best smart money concepts for mobile traders.

Disclaimer

This article regarding the BOS Trading Strategy provides Educational / Informational Support ONLY, NOT Financial Advice, Investment Recommendations, or Trading Signals. As such, you should NOT rely upon this or any other articles as your sole source of information or guidance related to Forex, Commodities, Indices, and Cryptocurrency Trading.

Trading Forex, Commodities, Indices and Cryptocurrency carries a high amount of risk and you can lose ALL or SOME of the capital you are investing. You should also note that past performances of any Trading Strategies, including but not limited to the SMC and BOS strategies, do not guarantee future performance.

So before any trades and/or investments are made, you should consider the following:

Practice on a Demo account to familiarize yourself with the Platform / Trading Strategy.

Know your own Risk Tolerance.

Consult with a Financial Advisor (Licensure Required).

The author and the publisher of this article disclaim all responsibility for any losses or damages directly or indirectly arising from the use of the information contained within this article. You will be solely responsible for making your own Trading Decisions.

Trading may not be for everyone. Therefore, trade with caution and at your own risk.

BOS Strategy Video