Advanced system #1 (Midnight setup)

Dear Edward,

Thanks for you very valuable site!

Had 2 questions:

1)If I live on the pacific standard time do I use midnight eastern time or can I use pacific time?

2)Is this your favored system? Since you mention on some other posts that you like to trade off daily charts...What are your other favorite longer term strategies?

Many thank!

Steve

Greetings Edward,

Please accept best wishes for a great trading year 2008. Please advise whether or not you still use this strategy and the accuracy rate. I believe that this strategy can produce phenomenal results if the right filters are applied to keep us out of bad trades. Unfortunately, these filters have proven to be quite elusive so far. Still searching. Have you had any success with new filters? All the best and happy trading.

Regards,

Terrence Muir
www.forexnetworth.com

Hi Terrence,

I've done no additional research so far.
The point is, I don't trade just one strategy, I use a mix of rules and also quite often test new ideas; so it is very difficult to make a report on either of the systems.

Anyway, thank you for asking and thanks for your holiday wishes. I took a long vacation this Christmas, came back few days ago :)... haven't traded for a month...

Regards,
Edward.

Does anybody tries to test automatically! I did on MT4 from the year 1999. This strategy looses money in EURUSD and GBPUSD in all mentioned modifications. You can faund some parameters in Y2007 to get some profits. (Original parameters gives 500 pips)
It seems that you guys are using something additional. Your feelings and knowledge about pivot points and when market is trading is much more important.
It would be interesting to hear more about them.

I have found some other very good ideas on this site, for example strategy #21 gives very good entry signals, that gives very good results if used also as exit signals and many positions are bought. True that such traiding require capital and also watching profits turn in losses is painfull. Alas optimizations spoil everything, at least I didn't faund any good ones. #21 definetly can be used as a bases for automatic system.

Anywhay I have found a lot here. Thanks a lot to everybody.
MM

hi edward, when the market seems to be moving in a particular direction and l place a trade, the next thing l know it now moves against the trade,now l normally trade 30mins and 1hr charts,thats when l hv time to sit in front of my pc, im verrrry confused. plz my other question is wat should l do when a currency pair tests its resistance or support ,should l close the current position so as not to loose some pips in intra day trading.
tanx a lot dis site is one of the best, expecting a reply 4rm the house of traders. THANX

If you trade 1 hour and 30 min charts you should look back at 5 min charts, and after that even at 1 min, to pick your best entries. Otherwise you will often enter only to see that price immediately moves against you.

Now, when the market is testing support or resistance you have two options:
1st - when you have done a deep market analysis and also determined a major trend on daily charts (and would be also good to know a current trend on 4 hour charts), then you may sit back and relax knowing that you are on the right side. If you have less than 50 pips in profit, there is no need to move your stop or exit, unless you are very unsure about the market conditions.
For me, I exit without a second thought if for any reason I feel that it is better to exit now. It is quite remarkable how often simple feelings about market conditions (especially if you trade one pair and learned its behavior over the time) can be so right.

2nd - when you have no solid analysis to rely on it would be wise to bring a stop to break even if applicable and watch how the market reacts to support/resistance.

Regards,
Edward.

Ok, this also reminded me about another method I wanted to share with all of you.
I call it "Trading breakouts of the breakouts".
The idea is to minimize false breakouts entries with our Midnight Strategy. In other words, we don't want to see the market moving against us shortly after we entered on the breakout of a daily candle and never coming back...
Please follow me to the new page where I'm going to describe the setup and rules of Trading Breakouts of the Breakouts

Regards,
Edward

hi edward, i am martha rodrigues from italy...sorry if my english is not so good..
i like this strategy, and i have one question for you..

You placed you look for yesterday candle..and this candle must have 90 pips range (high - low) including the shadow..than we put 5 pips stop buy at the highest of the candle..and 5 pips at the lowest of this candle..and put stop loss 3 pips for every positions..oke, it worked..but my question is, you know the price of the market is going back and fourth,,, i give you the example.

1. yesterday candlestick have :
highest : 1.0129
lowest : 1.0020

than we put :
* buy stop : 1.0134
sell stop : 1.0015

* buy stop lost : 1.0131
sell stop lost : 1.0129

then now, the new candlestick is appear..it reachs 1.0134 and our buy stop is ges filled..after is going to 1.0137, the price is going back to 1.0130 and go forward again to 1.0138..(the price is back and fourth)..because is going back to 1.0130, our stop lost is get filled..my questions is, is that possible we put our stop lost only 3 pips? because the price in the market is goes back and fourth..3 pips is very easy to get filled..(except the market is going very strong and our stop lost not get filled, but commonly the price is going back and fourth)..i hope you give me the solutions..thanks edward..

Martha Rodrigues