Advanced system #1 (Midnight setup)

Submitted by Edward Revy on April 29, 2007 - 08:11.

Ready to dedicate your midnight hour to Forex trading? This strategy can be your winner.

Trading strategy setup:
Currency pair: GBP/USD or any other.
Time frame: 1 day.
Indicators: None.

Trading Rules:

This system is based on the fact that most of the time you won't find same size candles for 2 consecutive days on a daily chart. What does this mean for us – only one thing: the price is moving steady either up or down with almost no price "noise" which is always present on smaller time frames.

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Submitted by Rich on June 16, 2009 - 18:19.

Works fine for me. Thanks Edward.
Nice comment Todd, I'll try your advice with ATR.

Rich

Submitted by User on June 26, 2009 - 06:08.

The above strategy is suited for position sizing during an established proper main trend holding the position for a week or longer. Gains of 600+ pips are not uncommon like the last two weeks in May 2009 as the pair moved from 1.5316 to 1.6000.
That's a risk / reward ratio roughly 1:2.5. If you use 2.5x ATR 14 reading for S/L and adjust in once a day your chances are pretty good not being stopped out.

Submitted by User on June 28, 2009 - 15:10.

You say midnight because your new Daily candle appears at midnight? Or is it something else. Because on my platform the new candle appears at 4:30pm, my local time is half hour less than New York time.

Submitted by Edward Revy on June 29, 2009 - 16:09.

It would be more correct to say: when a new daily candle appears.

Regards,
Edward

Submitted by Van Gogh on June 30, 2009 - 11:19.

Hi Edward,

First I would like to congrat you and your team for this site. Such a collection of trading ideas. Wonderful forum.
Regarding this system, I tested this Midnight Setup (without 1-a Trading Breakouts) and at the end I must say I was a bit disappointed.
I begun testing with history data from this month. I set OCO orders with 5 pips trigger away from Max and Min of last day. I also set Stop Loss orders like you said. I´ve used money management with 4% risk capital. I started with 10.000 USD.
At the beginning of June my gains were ok: I had 10.914USD by 10Jun.
But then I’ve had a series of losses and today my “account” is reduced to 10.043USD.

I also tested the entire May09 (history data) and my earnings were not so great also: started with 10.000 and ended with 10.624 USD.

This kind of system is great for me because I would be able to set my orders and go to work.
I cannot affirm that this system is little income-producing because I tested only 2 months but it seems to me that it will be possible to get superior incomes with identical risk (those SL are to far for my taste).
Can you point out another system where I could set my orders and go away?

Anyway I’m going to test other systems, maybe your Advanced #5 (Trend Lines Breakout). The problem is that one must way for the conditions to enter the trade.

Thank you in advance and Best Regards,

Van Gogh

Submitted by Edward Revy on July 1, 2009 - 11:13.

Hi Van,

Thank you for your backtesting review!
Ranging markets and reversals cause troubles to this system, so one should trade knowledgeably, especially around major S/R levels.
Take a look at Advanced #14 and also at 5x5 simple system, both are set-and-forget systems.

Regards,
Edward

Submitted by Mr T on July 13, 2009 - 07:01.

Hi Edward,

Can I use the same GBP/USD pair for both London midnight and New York midnight setup? Thanks

regards
Mr T

Submitted by Edward Revy on July 16, 2009 - 18:50.

Yes, Mr T
you can certainly try it out.

Regards,
Edward