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.
Read entire post >>>
Hi Martha,
We put Stops not 3 pips away from the entry, but 3 pips away from the lowest low when Buying and 3 pips away from the highest high of the candle when Selling.
So it would be a buy stop: 1.0134 with a Stop loss at 1.0020 - 3 = 1.0017
and a sell stop : 1.0015 with a stop loss at 1.0129 + 3 = 1.0132
Regards,
Edward.
really like this strategy it is how im already trading, also an added tip is to have an 8 period RSI with a 8 period EMA attached...... when they cross over its a buy with rsi going up, sell when going down!
mike
Hi Edward, I have a question. Lets say a Long order is filled, would you expect the Short order to gets fill? or just delete the Short order after Long order is filled?
Isidro
Hi Isidro,
I leave an opposite order for the same day. However, the next day it must be deleted as it becomes invalid. A new order according to new data should be set.
Regards,
Edward
Hi Edward, here is an idea i want to discuss with you, maybe you did think that before...
What i was thinking is if we could filter volatility, i wrote a custom indicator for this strategy to see it on the charts and realized that at times of volatility there are many entries that get triggered and ended in loss. So what if we take into account the size of the candle, so we can enter only if the candle size if greater than 70 pips (just an example), and also if the bar before this one also has a body of at least 50 pips and the two candles are both positive/negative. This way i think is more safer to enter a trade because we ensure that in fact the pair is trending at least for two days and the sizes of the candles give us the feel that the price is going in one direction. Also this way, we just set an entry order in one direction of the trend.
Did you think something like this? if so, what is the reason you didnt include it into your rules?
Best regards
Isidro
Hi Isidro,
Thank you for the bright idea.
I never thought of this before, but it looks very logical and I think you should really try and test it well. It would be great to hear your testing results.
Regards,
Edward
Hi Edward,
How exactly do yo calculate the weekly and monthly pivot points? I'm sorry if this is a newbie question but such is my status =)
I'm using OANDA and can only do daily pivot points with the pivot tool.
Thanks!
Jason
Hi Jason,
You may do it by hands with online calculator, the one like Forex Pivot Points calculator.
To calculate weekly pivots you look at the weekly candle (the one from the last week) and determine its High, Low and Close values, which you put in the calculator. Same for monthly Pivots, using monthly candles.
There is also a good short cut => ready pivots at ActionForex.com
Regards,
Edward