FREE FOREX STRATEGIES

Advanced system #14 (Simple trading with Daily range)


Submitted by Stuart (BE)

This method is basically to do with what a pair moved like the previous 24 hour period.

In this, I will use the GBPJPY, but one could use it on any pair.

Method/Strategy:

You choose your own 24 hour period move - here as an example I will be using 21:00 to 21:00 GMT+1 (my local time).

Mark the High, Low and Close for selected 24 hours.

For example, the GBPJPY for the last 24 hours was: H138.67 L136.00 and C138.13
Now total movement was (high-low) 267 pips.
You set your Buy and Sell orders 25% of the 267 total move away from the Close price. Therefore, 25% of 267 pips is 67 pips, thus your orders would be:
BUY at 138.80 (Close + 67 pips)
SELL at 137.46 (Close - 67 pips)

Set your TP also only to 25% of the previous days move - in this case also 67 pips. In theory, if the chosen pair then move only 50% of the previous days total move, you profit ...

Set your SL levels 10 pips away from the opposite order.

I have attached a Spread Sheet with all the formulas. All you need do is put in the High, low and close, and it will give you all the figures ... your buy, sell, take profit and stop loss.

25__MOVE.xls

Depending on what time zone you are in, I would suggest setting your orders before "your" market opens ... in my case it would be the London Market at 08:00 GMT.

Thanks a million, and any feed back from the pro's would be appreciated.

Kind regards,
Stuart (BE)

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

Copyright © Forex Strategies Revealed

Hi everyone,

I'm closing comments for this strategy. With over 50 pages of comments it is a lot to read for new visitors and a lot to review for me in order to answer your questions properly. Thus, a new discussion, if any, is very welcome to be opened and continued at our Forum:
http://forums.forex-strategies-revealed.com/

Best regards,
Edward

Thank you, Zen, for a useful summary and a feedback!

Faisal, you can use either one - London opening is good, US is OK too. Placing orders later at Sydney session might also work, all-in-all we should hold onto the idea and develop/improve from there.
Regarding the Gravity indicator, it is a custom tool, therefore you would need to download it and add to your MT4 platform.

The last revised sheet: LATEST_25_MOVE_1_rev.xls

No need to enter ADR. But if you need this data, you can use the following indicator:
Average_Daily_Range_1.mq4

Best regards,
Edward

Hello,

I am questioning a lot but i need to........
I have read some starting pages about this strategy and i found many spread sheet to calculate the entry level's please tell me which sheet is final form and i should use...
Also tell me in the final spread sheet ADR value needs to enter manually, how to calculate it should i use any indicator for ADR or i should calculate it with simple RANGE formula? or for previous day range only or for last 10 days range?

Regards,

faisal

Hello,

I am calculating daily pips range according to US session closing and put my orders at sydney opening is it okay. or can i use the opening of london session by calculating the last 24 hours pips range.

I dont use mt4 platform i am using FXCM trading station it doesn't has gravity indicator so can somebody tell me which indicator i can use in term of gravity lines.

Regards,

faisal

Hello,
Please tell me what is the best time for this strategy. When market opens at sydney or i can use it at london open??

I have been watching this strategy from the beginning and have found it intriguing. One of the few that does actually seem to work. However,it seems Stuart has moved on as he hasn't posted for some time. Possibly because it no longer seems to be the same system any more.

Personally, I think the idea is brilliant.

In my testing, using the original system, I have not had a losing week. Admittedly, my approach has not been totally scientific, but never the less, pretty impressive results.

As I am in Australia I set my time period from 9:00am to about 5:00pm AEST. Never the full 24 hours. [Eight hours seems to be enough.] That, and cancelling the other side of a trade when one side is triggered, are the only differences I think. I trade about six pairs at a time. And they can vary, depending on my whim at the time.

The following indicator is very useful in calculating the pips range of yesterdays bar. Or any bar for that matter. I can't remember where I got it from, but I had been looking for some time. Thanks to Zen Leow. Great job.

Although the risk/reward ratio is not great, the best way is to reduce your risk. I suggest the following:

Dont risk all of your balance (I close the opposite buy/sell trade for each currency once the other is triggered, so only half my balance is ever risked as a maximum).

Spread your risk by trading as many currencies as possible (5 or 6 is usually practical).

Spread your risk by trading as often as possible with a lower balance (I trade twice a day 7am-7am and 9pm-9pm GMT, so I can reduce the amount I risk for each 'session' by half). So in summary I have spread my risk over 12 possible outcomes rather than just blowing it on one currency trade.

It is all about spreading your risk - there WILL be losses, and days when you are down,but you are hoping to win at least 70% of the time, so approx 5% per day ON AVERAGE. I have traded over 100 times now and my cumulative profit is definitely trending upwards (with a few downward bumps along the way), with a new high each week. It is all about LONG TERM not daily or weekly.

Hi, there!
this is great winning strategy. I have test it
so far the result was great

I follow the original strategy but the problem is risk/reward ratio make me nervous.
anyone can help with that? please???

thank's

Thank you for your feedback!

We need such + and - feedbacks here to have a 360 degree view of the strategy and its potential.

Best regards,
Edward

I have been testing Stuart's original strategy for a month now (using 7am-7am GMT), with good results. I always close one currency pair order as soon as its counterpart buy/sell order is triggered (so only 50% of your balance is risked). I trade 5 currency pairs to spread the risk. I also expect to make the occasional expected loss and do not see this as a failure of the strategy but just keep going.I expect to make an average 8% daily return, which with compounding sure beats the bank!

The method of opening a position only after the market moves +25% past previous high/low is very well justified. It is a protection form whipsaws and early reversals and a confirmation that the market is ready to move in chosen direction. When we enter immediately above/below the previous day high/low, we are at higher risk to be wrong.

Best regards,
Edward

I think this strategie is not really good at all ? I've been testing it for a past few days and facing quite well huge loss ? What am i doing wrong ? AND 25% from a previus day high as an enter buy or the opposite for sell is not really good idea, at least i think so. Something's not right here...

Hi Stuart, Can you please inform about the results you have derived so far from this strategy?
Regards,
Fahad, KSA

Hi Jason,

TP is set to 25% for a reason:
Currency pairs are able to move certain number of pips per day; we calculate the average daily move to anticipate the range for the next day, let's call it 100%

Your entry position is activated when price covers the first +25%.
By setting a TP to 25% we make sure that it has the best chance to be reached, because this would mean that price needs to move only 50% of its daily range to satisfy our demands.

You can set TP to +50% and if it's hit by the end of the day - great, if not - you can always close a position manually and take what's available.

Best regards,
Edward

Hi everyone, Ive got a question. I tried this method of trading. but i still couldnt get as many as 100 pips a day. I also seen many post the result of their trading, some with up to hundreds of pips. i only set TP 25% from where i enter position. why is this so? should i remove TP and close it manually? I only see the chart once a day =(

Winning and Happy Trading!
Jason


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