Advanced system #1 (Midnight setup)

Also you may evaluate this indicator capabilities:

Acceleration_Bands.mq4
Settings: Factor 2.0, smPeriod 20, smMethod 2

Acceleration Bands tell about trend acceleration.
Once we have 1 but better 2 candles closed outside Acceleration Bands, chances are high we're looking at the accelerating trend. We can definitely take advantage of this, for example, by placing additional trades, also by setting orders in one preferred trend direction.

Best regards,
Edward

Thank you for your insight, Azfar.
I haven't tried it this way (without 90 pips rule), but may be it makes sense too.

Regarding pairs, GBPJPY is a great pair to trade: with high volatility and effective breakouts it yields much higher profits comparing to GBPUSD. The spread cost with GBPJPY will always be higher, but with high daily targets +-4 or 5 pips on spread don't bother me that much.

Best regards,
Edward

Hi Edward,

This is really a good strategy overall, I have success overall with gbp us. plz give ur opinion on d following two points.

1 - gbp jap is a high spread/cost pair, but i think it breaks out lots more/fast than gbp/us?

2 - if u remove the <90 pips candle filter.... its more risky at some months, but over all i have seen in backtesting it increases ur total profit very much!!

Regards,
Azfar

Yes, Mr T
you can certainly try it out.

Regards,
Edward

Hi Edward,

Can I use the same GBP/USD pair for both London midnight and New York midnight setup? Thanks

regards
Mr T

Hi Van,

Thank you for your backtesting review!
Ranging markets and reversals cause troubles to this system, so one should trade knowledgeably, especially around major S/R levels.
Take a look at Advanced #14 and also at 5x5 simple system, both are set-and-forget systems.

Regards,
Edward

Hi Edward,

First I would like to congrat you and your team for this site. Such a collection of trading ideas. Wonderful forum.
Regarding this system, I tested this Midnight Setup (without 1-a Trading Breakouts) and at the end I must say I was a bit disappointed.
I begun testing with history data from this month. I set OCO orders with 5 pips trigger away from Max and Min of last day. I also set Stop Loss orders like you said. I´ve used money management with 4% risk capital. I started with 10.000 USD.
At the beginning of June my gains were ok: I had 10.914USD by 10Jun.
But then I’ve had a series of losses and today my “account” is reduced to 10.043USD.

I also tested the entire May09 (history data) and my earnings were not so great also: started with 10.000 and ended with 10.624 USD.

This kind of system is great for me because I would be able to set my orders and go to work.
I cannot affirm that this system is little income-producing because I tested only 2 months but it seems to me that it will be possible to get superior incomes with identical risk (those SL are to far for my taste).
Can you point out another system where I could set my orders and go away?

Anyway I’m going to test other systems, maybe your Advanced #5 (Trend Lines Breakout). The problem is that one must way for the conditions to enter the trade.

Thank you in advance and Best Regards,

Van Gogh

It would be more correct to say: when a new daily candle appears.

Regards,
Edward

You say midnight because your new Daily candle appears at midnight? Or is it something else. Because on my platform the new candle appears at 4:30pm, my local time is half hour less than New York time.

The above strategy is suited for position sizing during an established proper main trend holding the position for a week or longer. Gains of 600+ pips are not uncommon like the last two weeks in May 2009 as the pair moved from 1.5316 to 1.6000.
That's a risk / reward ratio roughly 1:2.5. If you use 2.5x ATR 14 reading for S/L and adjust in once a day your chances are pretty good not being stopped out.

Works fine for me. Thanks Edward.
Nice comment Todd, I'll try your advice with ATR.

Rich

is this strategie still working profitable?

For candles with a day's range over 120 pips (pretty common these days), I look at ATR(14)and take 70% of that figure for my SL. I put on a TP of 1.5 x that figure. If I get stopped out it's "too bad, so sad", if my TP happens to get hit at some point I'm not looking, I'm very happy. Regardless, for me it's pretty much discretionary; I very well may close my trade during the day if the value happens to top 100 pips. Not perfect, but it works for me.

Todd

Hi there,

your numbers look fine.
I think that this strategy requires some additional thoughts for improving reward to risk ratio, but either way it is a great system idea to begin with.

Thomas

Hi Edward,

I am new to this site, but find it very useful. However that said i feel the above strategy to be high risk and low reward. This is due to your stop losses being at either the Highs/Lows of the previous day, and the profit target only being approx 100 points/pips, this looks high risk low reward depending on what the range was for the previous day based on the High & Low.

i.e Previous Day stats:- Open 1.6575, Close 1.6312, High 1.6663, Low 1.6242

So you would place two pending orders
Long (+5 pips) 1.6668 Stop Loss (-3 Pips from Low) 1.6239
Difference between Entry and Stop loss is 429 pips

Short (-5 pips) 1.6237 Stop Loss (+3 pips from High) 1.6666
Difference between Entry and Stop loss is 429 pips

All this for a reward of 100 pips.

Have i mis-understood the strategy???

my email is nbrinvest(at)gmail.com