Advanced system #1 (Midnight setup)

Thank you!

Here is the thing about trading with more than one pair when your account grows: when you trade one pair, you become an expert in this pair, you can read and sometimes predict/feel what reaction and pattern the pair is likely to develop next - it works to your advantage, you also keep focused on a single price action and don't lose the idea of why and when you should enter or wait for a best chance to trade.
When you add one more pair, the load doubles. For me it means I have to write down everything I want to remember about the pair: why I decided to get in or wait, what I need to watch for, what are my goals and stop options.. there is a lot of writing if I don't want to lose an edge on trading while switching in between pairs.
So get a notebook and start keeping notes :)

When you add another pair which is not correlated, as you said, you'll have your risks diversified, however, it won't necessarily mean that your final profits will be higher than if you just trade one pair.

Regards,
Edward

P.s. decided to hold with quick updates I promised earlier. Need to do some further testing.

Amazing site Edward, I was lost before I found this excellent collection of ideas and strategies. One thought, with the midnight strategy I have been watching a few currencies and since most of the losses occur during consolidation or trend reversals, I have tried to stay away when i see this and perhaps trade a currency that is in a trend. Now this has worked but is still subjective as I am deciding which currency i will put the trade on that particular day, week, etc. So, to combat this i have simply tried to put the trade on for half the size i would normally do if I feel a consolidation slash trend reversal is emminant. This way I can still trade my main currency (GBP/USD) and I don't have to jump all over the place from currency to currency. Just some imput. One more thought, as your account grows would you suggest trading more than one currency at once or just increase the lot size of the main currency you trade. I guess by trading more than one currency your swings will be lower, especially if they are uncorrilated (excuse my spelling, lol) currencies and it'll reduce your drawdown but trading costs will rise, I would appreciate some input on this subject. Also to Umair, I also use FXCM and put my trades on between 5 and 6 EST as i am in an EST zone and yes the platform day candles are from 5pm to 5pm, I havnt experimented with any other times, but this seems to work fine.

Hi Umair,

Usually after 5 pm EST Forex market is not making any new highs or lows for the day, the following Asian session is on general less active than London or New York sessions. Thus, I believe you can trade daily candles based on 5pm closing time.
I would compare the results with midnight trading for the first couple of weeks to ensure that you have a matching success rate.

Regards,
Edward

I use FXCM and I think that there daily candle closes at 5 pm EST. WHat should I do in this case? Should i use those candles or should I find the High and low from 12-12midnight? Your help is appreciated, thanks.
Umair

Great Strategy big drawdown but impressive winning ratio.. in whole very nice strategy...Welldone Keep it up... and thanx for sharing such a beautiful strategy.This site is gr8 Good Work Edword

Hi Esther,

This is the orders for a Long trade:

Opposite will be for a short trade.
Please let me know should any questions remain.

Regards,
Edward

Hi Chichi, yes, this can happen. But we have a filter to lower the chances to the minimum - we use 90 pips rule, you can review in the strategy rules.

Regards,
Edward

thanks sir 4 ur wndrful strategy, i feel in love wt it but need u to clarify issues here-in this system, wld there be any case of thus:- aftr settn buy/sell 4 instance sell was running nd eventually reverse to buy and pick loss on sell order, started buyn nd reverse back to sell and pick loss on buy order. can this case ever ocure?
CHICHI

Hi, my name is Esther, am new in the forex world have gone thru all the strategies but prefared to go by the midnight setup but need u to clearify some issues here.
Do u mean at 00:00 place a pending order that will execute itself thus:- place BUY @ the high of the previous trade+5pips & sell @ the low of the previous trade -5pips.
* Put your stop loss order for a BUY entry at the lowest price for the day -3 pips.
Put your stop for Short order at the top of the highest price for the day +3 pips.
**** I tried this nd was d diffrence btwn d loss & d gain was not upto $4. or may be i didn't place the trade aright.

pls help clarify issue.

Thank you for the feedback indeed, I'm very glad you were able to make your own set of rules and get results!
Happy trading!

Edward

Hi Peter,

If price bar including shadows is less than 90 pips for GBPUSD, it means that we have a small price range to work with the next day. Unless you know the trend and choose to trade in one direction only, I suggest you avoid trading. Why?

Because, according to the strategy rules we need to set both order Buy and Sell above and below the previous candle. Chances are high that we'll have both orders triggered as well as both stops triggered, since the price range of 90 pips is a very tight one.

Regards,
Edward

#If the price bar (including shadows) is less than 90 pips long we will not open new trades on the next day.#

Hi,
why not? Please explain. Thanks.
Peter

Hi Jo'

In this case you won't be left with 2 orders. You'll have just one open.
For example, when a Buy order is hit first, its stop loss is placed 3 pips below the candle. If price goes down, it'll hit your stop order first.
Only then it'll open a Short trade (which was set 5 pips below the candle). So, you'll be left with one Sell order at the end.

Regards,
Edward

Hi, just wondering say if you have placed a BUY and SELL stop order (based on GBPUSD pair) for today's midnight (+5 pips up and -5 pips down). Then the price subsequently moves up to hit my BUY order and then later moves down to hit my SELL order as well... which means to say, I am now with 2 positions open... does scenario is it possible? IF it happens, what should I do?

Jo'

thanks for your answer edwuard

joan