Advanced system #14 (Simple trading with Daily range)
Submitted by User on March 6, 2009 - 07:22.
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.
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.
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.