Advanced system #1 (Midnight setup)

Hi Edward,

This is really a good strategy overall, I have success overall with gbp us. plz give ur opinion on d following two points.

1 - gbp jap is a high spread/cost pair, but i think it breaks out lots more/fast than gbp/us?

2 - if u remove the <90 pips candle filter.... its more risky at some months, but over all i have seen in backtesting it increases ur total profit very much!!

Regards,
Azfar

Thank you for your insight, Azfar.
I haven't tried it this way (without 90 pips rule), but may be it makes sense too.

Regarding pairs, GBPJPY is a great pair to trade: with high volatility and effective breakouts it yields much higher profits comparing to GBPUSD. The spread cost with GBPJPY will always be higher, but with high daily targets +-4 or 5 pips on spread don't bother me that much.

Best regards,
Edward

Also you may evaluate this indicator capabilities:

Acceleration_Bands.mq4
Settings: Factor 2.0, smPeriod 20, smMethod 2

Acceleration Bands tell about trend acceleration.
Once we have 1 but better 2 candles closed outside Acceleration Bands, chances are high we're looking at the accelerating trend. We can definitely take advantage of this, for example, by placing additional trades, also by setting orders in one preferred trend direction.

Best regards,
Edward

Thanks for ur reply Edward,

I agree with u about gbp/jap but till now i m not able to find some solid strategy for gbp/jap

checked d same strategy (midnight breakout) for this for april and may 2009, but results were not good, may b those were only a few of d bad months, I need to check it for longer time frame as i did for gbp/us.

any idea for some already tested system to trade gbp/jap, this pair fascinates me very much.

Reg,
Azfar

Thanks for the Acceleration band indicator, i have never used them and am not able to find it on FXCM charts... but i will find them out at some other charts or so... if it makes even 5% difference, i will b much more comfortable with this strategy.

Reg,

Azfar

You're welcome, Azfar

I found that GBPJPY responds well to 5 min based strategies. The pair gives tens of pips in a matter of 15-30 minutes and easily covers the cost of spread.
I haven't published a specific system for GBPJPY on this website though.

Teodosi simple system is one of the good examples, although not exactly for 5 min charts.

Regards,
Edward

Thanks Edwards,

Ur inputs r always d most valuable. I will wait for u to publish some gbp/jap system with 5 min charts.

I followed d midnight break out strategy also with GBP/JAP but found dat it doesnt get filled at ur desired price level much much much more often then gbp us. so v r not looking at the high spread cost only but also some extra slippage bcz of less liquidity in this pair I guess (just checked for one month) it may b a bad month.

Reg,
Azfar

hi edward

can u use the doji as a prevouis day candle if it was more than 90 pips or do have to wait for the next daily candle?

thanks barend