Advanced system #1 (Midnight setup)

"This strategy is ignoring the most important trading rule. Run your profits and cut your losses. This is cutting the profits instead of running. This strategy is completely based on Trend so it should cash in the complete trend as much as possible. The take profit should not be used and just move the stop loss to the previous day low. That would give better results."

You will find what you said is not correct if you do some backtest. Trailing stop loss is usually not as good as a hard stop loss, unless the trend is extremely strong with very little noise.

dogberry

For those who do not feel comfortable for using an EA. Here is an indicator which shows the buy/sell stop price, stop loss and take profit.

midnight_gu_1.mq4

midnight_gu.ex4

Hi edward, awesome strategy. i have been looking at this strategy for a while now and i think i have found a different way of doing things but still using your ideas. could you please look at my idea and let me know what you think.
.instead of looking at 12am to 12am look at 8 am to 8am
.at 8am put the buy and sell orders at the high and low of that day [12am to 8am
.if you are in profit by 12am put a stop loss in place so you are safe while sleeping. havnt decided where to put stop loss yet.either at previous pivot point or from the highest or lowest point from 6pm onwards.
.once you wake up at 8am move your stop loss [from 12am]to the highest or lowest point from 12am to 8am
love to know what you think
matt [kattming(at)hotmail.com]

Hi Edward,

My name is Paul

I modified this sytem a little bit and below are the rules:

- I sell on breaks, but the SL is 20 pips behind the Pivot level.
- I reload the position on everyday after and lower the stop to the priviuos day 20 pips above Pivot.
- I only trade if the price closed above daily pivot (BUY), below daily pivot (SELL)

This rules will eliminate the bad trades and limit the loses.

Firstly, Great Site, excellent information.

I have been playing round with this strategy on demo account, have found that if the take profit is set at 50 points for Gbp/usd, and 35 for Eur/usd you will profit nearly every day, this is without monitoring the open trades at all, if you had time and trailed the profit or set the Take Profit a bit bigger there would be more points made. This level of profit gets hit alot anyway ( 50 & 35 ). Some days there will be no trades as the price doesnt move outside the previous days candle. Also I have been using 10 points outside the daily candles to set the entry orders, found this is a bit better for not getting hit unless a genuine move is underway (it was 5 points in the original rules) In the last 10 days on Gbp/usd I have seen successful 300 points, and 150 on Eur/usd.

Found the 100 TP level a bit much for this strategy, and get stopped out more.

The problem is the stop loss is very wide being at the high / low of the previous days candle as stated in the original rules. If it came to hitting the stop you would lose 150-200 points, maybe more depending on the size of previous daily candle. Big loss. Havent been stopped out yet, came close on Eur/usd, but came back into profit, 35 pips the following day. So the risk / reward ratio is not good... Well, thats it, anyone have any comments...etc.

Dodgy

It is a game of risks, although myself I don't like this much.

If we risk little = set tight stops = we get no expected rewards, just a small loss after a small loss. If we risk more = we risk to lose more. What is your pick?

I'm trading with Edward's rules so far so good, but it is still on paper.

Altt

Thank you for your feedbcak, guys!

I'm aware of the risks, but please don't forget that we're dealing with daily candlesticks and here we cannot use those comfortable 20-30 pips stops, it just wouldn't work.

One more rule regarding stops: if in a trend we meet a really tall candlestick - the market exploded in one direction - is it highly recommended the next day to put your stop loss to 50% of the length of this tall candle rather than keeping a stop far behind. If you had two orders running or can do partial closing of positions, take some profits out and let the rest run.

Best regards,
Edward

I'd like to thank you everyone for your feedback, support and questions!
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