Advanced system #1 (Midnight setup)

Psychologically, setting a TP ahead brings piece to trader's mind. Setting a target of 100 pips in advance is a good and practical method, but it will only work for those, who won't cry later about exiting too early and missing out few extra pips. Yes, I like the idea of setting a predefined Profit Target, especially if you're running two orders (as described in the original rules). Also if you are able to identify Support/Resistance levels nearby, you can set an accurate Target and be relaxed knowing it will be reached.

Regards,
Edward

I've been reading and just wanted to show you how I use this strategy.

Once the previous day candle is closed, I would usually sit down 1 hr before european market open.

I sent horizontal lines on high and low, I then check my stochastics, and rsi, and basically if both are showing me a above oversold but below overbought in an uptrend, I would look for a break in the highs of previous day, or set a buy order 5 pips above. I usually set a 60pips profit 40 stoploss and a 30pip trailing stop. I chose the ratio cuz of this usually is a high probability trade.

I would take a trade if the stochs and rsi just crossed overbought, and after that would wait for a clear direction with stochs and rsi. I use a little more leverage which has been working for me. I exclusively use breakout strategies and bounce.

Today aug7 I made 12% of a trade scalping the days breakout{eurusd right after rate news it broke hourly support and prev daily low high prob trade}, I took about 25pips with a 1 to 50 leverage{not advisable}.

But this strategy is beautiful

Samuel

Hi Samuel,

Thank you for sharing your insight!
Looking for a preferred momentum with Stochastic and RSI is a simple and brilliant idea. The approach offers less trading opportunities, but those which qualify have higher chances to reach the target. Thank you once again!

Regards,
Edward

Thanks for all your answers Edward. I have one last question though, how do you handle the monday gaps (for example today on GBPUSD ? How would you set your orders on this particular days ?

you have a good point, but I have no specific rules for trading gaps.
In addition, hat I found useful for myself is not trading on Mondays whenever the setup is questionable.

Regards,
Edward

hello edward!

I m working to develop a trading system,and your system with the daily average stuff got my attention...so I tested your system with a little modification..

I set the candle size to 120 pips,and the take profit at 120 pips...

When I m in a trade,and there comes a candle witch does not exceed the previous days high,or low I exit..(same thing with the doji,or hammer)

I backtested the euro/usd from feb.21,until august 11 and the results are:
there were: 40 trades
12 lossers
28 winners
+2195 pips
-769 pips

profit 1426 pips 6 months...

My biggest loss on a single trade was 150 pips...but there were -30,-20 -50 too...

My next step is to figure out some kind of money management...But the problem is that the stop losses are diferent from time to time...

Thanks anyway for your system....laszlo(sorry for my english:)

happy trading!!

Hi Laszlo,
I read your artical and you say you need to work out some kind of money management.
Im no professional, but if you have different stop losses and trying to work out your money management, just use the 2% rule.

Meaning, if you have a $5000 account size, 2% of that is $100. Divide your risk by your stop, say 50, then your lot size should be $2 per pip. Hope that helps. I use that every time i trade, stops are never the same.

Sorry Edward if im interfering.

Absolutely not!
Comments like yours are the best comments on this website. I should say, it is challenging to keep up with questions alone. I highly appreciate every single advice and help from our readers.
Thank you!

Best regards,
Edward