Forex trading strategy #18 (20 pips with GBPUSD after midnight)
Submitted by User on May 8, 2009 - 11:01.
Submitted by Rich
I've just started trading a strategy which is based on the close of the first 15 minute bar after midnight GMT on GBPUSD.
1.) Take the closing price of the first 15 minute bar after midnight GMT on GBPUSD
2.) Place a buy order 50 points above the close and a sell order 50 points below the close
3.) Both orders should be placed with a 20 point stop loss and a 20 point limit order to take profits
4.) Once 1 trade is triggered, cancel the other.
This has averaged 74 points per month since April 08 which doesn't sound much, but given the short stop distance you can afford to place large trade sizes. I trade with £10k capital and am placing £12.50 per pip or 2.5% per trade. Based on last years results that's almost a 10% monthly return.
I have tested this with 20, 30 and 40 point targets, the 20 point target won 960 points over 13 months, the 30 point target won 780 and the 40 point target won 960. I prefer to stick with 20 as a safe option.
I admit that it did have 1 loosing month last year but providing you persevere it's a winner in the long term.
Here's the results spreadsheet for the last year:
Rich
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
Is this system still used? I am new to FX trading and tried it out without success so wanted to kniow if I was doing it right?
SELL
Close 1.6315
Sell 1.6265
Limit 1.6245
Stop 1.6285
Buy
Close 1.6315
buy 1.6365
limit 1.6385
stop 1.6345
If someone could tell me if this is correct?
Hi Rich,
Are you still using this strategy? How'd it going?
i Been test and trade this system is not real profit, but i also add a extra to the system go to www.daytradetowin.com trade the a,b,c system with 20 pip stop and 21 pip profit you will make money. i been trade for year now been very good..
Hi
R u still using this strategy? And is it working?
Have you tried this with any other pairs like the EUR/USD
You're a technical trader. No fundamentals whatsoever. Be sure to mention the trades going against you unexpectedly, to the people who are following what you're doing.
BUFF
what do u mean when u say 50 point? does it imply 5pips or 50pips?
I have tested this for a month of daily trades and I got results consistent with Rich's long backtest
I have been testing this system live and so far my results are consistent with the 74 pip/month average
Has anyone tried this lately. Looking back the past few weeks, it appears to still have enough winners on a monthly basis to still be profitable.
hi
i'm just new to forex. (please dont laugh)when you say place sell order, is it a sell or a sell stop order (please also tell the difference between two.
2011 - huge losses for EURUSD and also for GBPUSD
anyone have any record for 2010?? profit and loss?
points = pips
Regards,
Edward
Rich, I am assuming you mean "pips" when you say "points?" We do not use "points" in Forex, and I assume you have just mistyped the word you actually meant to use. The reason I am asking is because sometimes people call 1 point a function of a certain number of pips. One guy called 1 point 10 pips, etc.
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