FREE FOREX STRATEGIES

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


Edward Revy,
http://forex-strategies-revealed.com/

Copyright © Forex Strategies Revealed

even though this strategy i found on the blog works for stocks I don't know how to make it work for fx, because of the 24 hour sessions. Experts do u have any comments ?

http://indiastockspotter.com/Blog/tabid/88/EntryId/12/Market-Open-Out-of...

there is two download file where do i place and how ? please help

I feel that this is a good strategy.
With a good money and risk management, I believe it works very well =)

I think that the EA got some bugs.
1. I can't trade with the news although I follow the instructions to trade news
2. When the TP was set "200", it should be 200 pips away from my buy/sell order. But it gave me 20 pips only instead.
3. The SL should work similarly as TP. But when a fixed amount is set, the SL doesn't match with the buy or sell order. For e.g. the buy order is @1.500 and SL is being set at "20". SL should be @1.4880, however it doesnt be the case. the SL will change itself even buy order remains unchanged.

I would appreciate if you can fix that =)
thanks ^^

Quick update guys,

Check the Real Money Accounts Competition at http://www.forex-robots.com, the Megadroid it's really reaping the market. It seems to me that they found a solid robot finally.

Best,

Lucas

"Just place a buy-stop at the high + 5 pips and a sell-stop at the low - 5 pips of the last few candles."

so, you'll have Buy entry at 1.4945 and sell entry at 1.4925.

Thomas

Hi Philipp,

Thanks for the strategy!

I'm not using MT so I won't be able to use your EA. So will be doing it manually. Just need to clarify on how you calculate your entry point and SL. If the high and low of the last few candles were 1.494 and 1.493, my buy SL would be 1.4927 and sell SL would be 1.4943. Where would my entry point be? I assume this strat calls for 2 orders to open?

Leon

What kind of file is it (the content) and where do you want to copy it?

Regards,
Edward

where copy news.cvs file?

Yes, it will be the lowest/highest value among the last 2-3 or 5 candles, depending on a chosen time frame.

Thomas

Dear Philipp,

Thank you for sharing the strategies. I am new to FOREX and they are a great help. In the above strategy, when we calculate the price for Stop Sell and Stop Buy order, do we base the calculation on the lowest/highest price of the last few candles?

Thank you very much in advance.

Hi Remlad,

I don't know anything about VT Trader, but this ES is designed for MetaTrader. But maybe somebody who uses VT Trader can hlep you.

Happy trading,

Philipp

Hallo Phillipp, thank you for sharing this simple system with this forum. I was just wondering whether I can download the EA into the VT Trader platform?

Remlad

@michael, @mike: If you don't want to use the news trading function you can use any file which is named News.csv. In my second post I attached a file named News_MarketOpen.zip. In this file is a little description about the settings of the EA and also a News.csv file. Just copy this file into your files folder (explained in the little description).
In the next update (probably next week) I will modify the EA that there is no error but just a warning in your jounal. There are also some other mofications that some of you recommended to me which I will add to my EA.

About the winning percentage: I can't realy say anything about that yet, because I use the EA just since a few weeks and I did not have enough trades for a reliable number. Also it is difficult to backtest because the EA uses 1 min timeframe where you have a lot of data errors. But I can tell you, when I traded this strategy manually it worked quite good (but as I was not able to trade every market open I don't have a winning percentage either).

happy trading,

Philipp

Hi Philipp,
I got your ea but gets alert messages saying "NO file named News.csv in the folder".ea is disabled. how do I solve this problem.How do I get the News.csv file.thanks.
mike

Hi philipp,
got a great ea.Please I try opening ea on my metatrader but kept geting alert on "NO News.csv file".As aresult ea disabled.HOW do I resolve this issue.How and Where do I get the News.csv file .I need to get everything in order to start testing this promising ea.secondly, what is the percentage winning ratio? Thanks a lot.

michael.


Post new comment

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image without spaces.