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Forex trading strategy #16 (Capture Market Opening Pips)

Submitted by Philipp

I think many of you noticed that price move quite some Pips directly after opening markets in certain countries. So why not taking advantage of these movements and grab a few Pips?
The only problem is how can you know in which direction the market will move?
The answer is quite easy: You don't know.

And there this strategy comes in play:

Timeframe: 5 min or below
Indicators: none
Currency Pairs: EUR/USD, GBP/USD, GBP/JPY (I tested with these, but others should work also)
Important Openings: Japan, GB, Europe, North America

You don't need to care about knowing in which direction the market will move.
Just place a buy-stop at the high + 5 pips and a sell-stop at the low - 5 pips of the last few candles.
How many candles you use depends on your timeframe. If you use a 5 min timeframe you use 1...2 candles, on 1 min timeframe you use 2...5 candles.

For stop-Loss there are two possibilities:

1. You place your SL 20 pips away from the price where the order would be hit.
2. You place your SL 2...3 pips above the high (sell order)/below the low (buy order) of the candles you used to determine the price to open the order or SL described above, whichever is closer.

For take-profit it would be best if you just trail you SL 5 pips below (buy)/above (sell) the recent price AFTER price moved AT LEAST 6 pips. If you can't trail your SL that close use the closest possible distance and start trailing after price moved this distance + 1 pip.
If you can't trail your SL at all you have to use a TP. This should be between 5 and 10 pips, as you can never know how far price will move.

If there is one or more pending orders which have not been executed till 5 min after opening of the national market you have to delete these orders and wait for the next possibility.

This strategy also works for news, but if you want to try it on news you have to be careful if your broker wides spread significantly. This would increase chances of losing trades enourmously.

Opening times of national markets can be found at http://www.worldmarkethours.com

When I have finished the EA I make for this strategy I will post it also.

One word of caution:
The information about which currency pairs and markets to use took several years of research. So if you want to use another currency pair or market make sure you do some research bevore risking your money.

Happy trading,

Philipp



http://forex-strategies-revealed.com/


we will waiting your EA my Friend, Thanks a lot.

Regards;

Manus168

thanks for sharing Philipp.. very simple just the way we all like it.. look forward to your daily strategy.

Live the dream.
Luke

@Luke:
What du you mean with daily strategy?
I can't remember mention anything about that. All I said was that I will make an EA (Expert Advisor = Trading Robot) for this strategy.

@Manus168:
The you will have to wait for just a few weeks from now on. I already finished the EA, but I need to optimize some parts of my code as far as CPU and RAM usage is concerned. After that it needs to be checked, recheckt and checked again that it does exactly what it is meant to do.

Happy trading,

Philipp

As promised I finished the EA. I also added a description for the most important settings and a file with some future news announcements.
This file has to be placed into files folder of your MetaTrader (described in the description). If you want to backtest just place it in the files folder which is located in the tester folder of your MetaTrader.
As this robot would trade with every pair it is attached to make sure you only attach it to the pairs I recommend or you made some research. So you can download the EA here:
News_MarketOpen.zip

Feel free to test and/or modify it, but please notify me via email (my email address can be found in the header of the .mq4-file) if you find any bugs or make any modifications.

Happy Trading,

Philipp

Hi Philipp, wonderful job and great effort, we salute experts like you guys contribution to this place.

after activating the EA, Found the left portion of screen displaying information (attached pic)and placed order based on that manually

scenario
Sell order 1.5033 S/L 1.5057 T/P 1.5003
Buy order 1.5051 S/L 1.5027 T/P 1.5081

Market activates my sell first and it went +ve then, reverse back my numbers are running in -ve, then hits S/L lost =24, nevertheless my buy order is activated went +ve for some time again roll back down hit S/L

Please tell me how to act in this situation.

No pics were found. Please resubmit carefully following the instructions. Thank you.

After I got an eMail from one user who tried to test my EA I had to realize that there were still some bugs in it. I fixed those I found and uploaded the ex4- and the mq4-file on my server. If I find any other bugs or somebody reports other bugs to me I will update the files there.

You can download the files here:
News_open.ex4
News_open.mq4

Happy Trading,

Philipp

The information in the upper left corner (High, Low, Buy Order, Sell Order, Stoploss, Takeprofit) are no signals for trading. That is just the data which would be used for opening orders if there is a news announcement "now" (when these numbers appear/change).
If you place any order manually the EA won't touch these, because it can only modify/delete orders/trades it placed by itselve.
So if you run the EA you don't need to to anything, as long as you don't get any error (you will see that in jour jounal)/alert (a error window pops up) message.

Just some more general information: If jou have an EA (never minde where from), you will not need to place any trades manually from the information you get from this EA, otherwise it would be no EA but an indicator.

Happy trading,

Philipp