Advanced system #8 (4 CANDLES STRATEGY)

hi,

When you said firt 4 hour. Are you refering, 8am GMT UK Market begins, you take the candle from 8am,9am,10am,11am and then check the highest and the lowest, on these 4 candles. And then wait for a breakout?

You can take 4 candles starting from either:
00:00 GMT (midnight candle to 4 am) or
00:00 GMT+2 (midnight candle to 4 am) - this is the actual time frame James used in for his screenshot.
..and then you trade a breakout.
Hope it helps.

Thomas

I've been demo trading this strategy for the last two months and it is working very well. I am up more than 50%.

I would recommend this modification:

I know its been mentioned here before that 3 hours instead of 4 hours works better. I would agree with this comment. I find the 4th hour is very often inside the 3 hour range anyway. If you base your position size on the risk and fix your losses at your risk percentage, the smaller range of the 3 hours, on average, means you have a larger position size and more profit on winning trades, ie. more profit with a fixed percentage of risk on very similar, if not the same, win to loss ratio.

I have found with this strategy you may lose on one position, but win on the opposite when it triggers. With the smaller range/higher position size/fixed risk percentage of the 3 hour strategy, the loss is the same, but the win in the opposite direction might mean you break even for the day.

Actually I should note that I am risking 4% of capital on each position, I have also included the AUD/JPY pair, and i split my positions in half, taking profit at 80 & 100 pips for gbp/jpy and 45 & 75 pips for aud/jpy, and i dont trade if there are any holidays. As of today I am back down to 46% (last thur and friday was not so good!)

great strategy,it realy works guys,i everyday make lots of money with this strategy,the strategy gives the best entry and all it needs to find when you have to get exit.

good luck
caspianous
IRI

very good strategie, busy testing it and so far great results, just one question and i think it has been asked but im gona ask it again. do u use the 00:00 01:00 02:00 03:00 0r is it the 01:00 -04:00?

thanks

It is 00:00 01:00 02:00 03:00.

Regards,
Edward

It may sound silly but I don't get the point of these:

- Trade the direction of the 4hours stoch with higher quantity
- Trade direction against 4hours Stoch with lesser Quantity

Could you put some light on it?
Fee Dee