Advanced system #1 (Midnight setup)

Hi everybody,

It seems this strategy is interesting.
I have tried to write an Expert Advisor for this strategy. For people who are using MetaTrader 4 Platform, I invite you to join the forward test. The EA can be downloaded at my blog, http://www.myforexstrategy.blogspot.com. It just a small contribution for this amazing system. Hopefully this EA can help us to make trading easier.

Regards,
Aryana

Hi Edward,

First of all, a big thank you to you and your team members for creating this website with so many useful strategies.

This Midnight Setup strategy looks attractive. But there are some parts in the instructions that I do not quite understand. The paragraph below is the instructions.

Now, when one of the orders is filled – stay in the trade for the whole day. At midnight with the new daily bar open, adjust your orders and stops according with the previous daily bar following the same routine; keep trading position open until get +100 pips, then you may close current position to reward yourself. Rewarding is a very powerful tool, use it.

1.) Can this strategy cause the pair to be longed or shorted more than once? Because the instructions above says that if one of the long/short orders are filled, at midnight with the new daily bar open, we ‘adjust our orders and stops ‘. I know that Adjusting stops does not involve longing/shorting another trade but would the adjusting of our orders that involves buy stop or sell stop the pair lead to another trade involving that pair being created?
2.) If that next candle doesn’t trigger but its range is > 90 pips, would I adjust my orders and stops according to that candle? How about when it is < 90 pips?

Please let me know. Your response will be much appreciated. Thanks.

Tom
Malaysia

Hi Tom,

Originally, I advised keeping one order only. However, it is possible to add another order while still keeping previous open, but only if previous order has already counting positive pips for you, e.g. your trailing stop order is protecting profits, not losses.

Now, once in a trade we trail our stops. If a new candle comes to be >90 pips, we happily adjust a trailing stop to it. If, however, candle is less than 90 pips, there are two options:
a) adjust stop to the last candle no matter what. Recommended after a tall candle has been seen the day before this short (<90 pips) candle bringing good amount of pips along.
b) adjust the stop to the middle of the last but one candle, allowing some room for price to move once it spikes outside a short candlestick; and then, hopefully, the trend will continue. Recommended if no substantial pips has been gained so far.

Regards,
Edward

Thanks Edward for this great job, My question: does the news that comes out during the day affect this trade? what can you say about the Guy that did an EA for this system? Can I share this system in another forum to help my people?

Thanks for your response.

Regards
Adewale

Hi Adewale,

News affect any trading, however, current trading system doesn't require that traders keep track of the news.

I haven't had a chance to test the EA yet, and the author is our new contributor, but you can definitely use the EA to help traders at other forums.
You may also quote the system itself referring back to the original source. Thank you.

Regards,
Edward

Hi Eward,

You say if the new candle forms is under 90 pips or is a doji we shouldn't trade for the next day, but what happens to orders already opened, should we close them or only change the stop loss ?

We should continue trading and only change the stop loss.

Regards,
Edward

Also, I'd like to know if you think it's better to set TP or to wait for the midnight hour to see how much profit we have. the reason I ask is because sometimes we reach the 100 pips during the day and at midnight we're still up but under 100 pips.