Advanced system #1 (Midnight setup)

Hi Joan,

Weekly trading requires wide stops. I'm not sure I tried to compare weekly against daily trading for this method before; it may require some additional adjustments/rules.

Regards,
Edward

Hi Edwuard, I think this strategy works much better on weekly charts than on daily charts, which is your opinion?

Thanks for all the work done here

Joan

You're welcome, Galina

I'd recommend using EST time from midnight to midnight for calculating Pivot Points.

Regards,
Edward

Thank you for your reply, Edward.
One more question, please. Should I calculate pivot points according to GMT+2 as well?

Regards,
Galina

Thank you everyone for you wonderful feedback and comments!

To GG: try trading according to GMT+2. After all it is just two hours off the London time.

Regards,
Edward

Hello, Edward!
My server time is GMT+2. Should I reset my orders at midnight EST or at 10:00 am EST next morning, when daily candle on my platform is closed?

Thank you,
GG

I just needed to add one BIG modification to this strategy, Just test it on weekly timeframe and you'll all come to know the difference, Thanks,
Bhatti

Thanks to all for this very interesting strategy and great discussion. Very helpful to a noobee like me.

What is Expert Advisor? Where is it available, and why do the people backtesting report this system doesn't work?

As I've read the comments, it seems like Edward and others have modified it in several ways to eliminate congestion, weekends, and other times when trading would not be favorable. Also used indicators to detect times when the market was trending and not. So I don't see how these kinds of judgment calls and modifications could have been programmed into a mechanical backtesting system.

I'd appreciate more comments from people who have actually tried this system and are willing to share their results in net pips over time.

I'm trying it on a demo system starting Tuesday and I'll write about my results in a few months.

In the meantime, thanks again --

ericjt

Hi Edward,
I must commend you and all others who made this site possible.Forex trading, I have come to learn, really needs putting heads together.You work on this site has really revolutionise my trading and given me confidence in an almost elusive field.

I found the midnite setup very interesting because i am a firm believer in candle stick patterns as the most reliable way to show the intentions of the Big Players.However I got stuck in that i always waited for a second higher or lower candle(uptrend/downtrend as the case may be) as confirmation of a trend be for i entered any trade.Also I used two candles in the opposite direction to exit.while this approach look logical it only worked well in very high trending situation.it resulted in losses or very little profit in moderate trending situation.I thought hard of a way to enter and exit quickly but to no avail until last friday after the close of the trading session I was so frustrated, i google "forex strategy" and behold your website came up and my eyes opened!

i think the midnite set up is a very high probability set up and I am thinking of ways that it can be made to work in lower time frames. Also, I was thinking if anyone knows of a programme or expert adviser that can handle the trade such as it would determine that a candle meets the minimum required pips for a entry and also to be able to exit the trade when the set profit target is reached and then automatically scanned the candles for minimum entry and enter a trade automatically when the minimum is met.This should go on automatically from 2am est to 2pm est everyday without human intervention.

this any one know if this can be programmed in or is there an expert adviser that can handle such a routine?I would appreciate feed back.
Thanks all, particularly Mr edward.

Cheers,
Malik

Yes, we need to include the spread as well.

Coding a strategy is more demanding than simple trading. I'm not against it, I think it eases the challenge in many ways, but on the other hand, I don't know what your strategy did and how it entered and exited the market and what were your money management rules etc etc.
An EA most of the time is limited to what's been coded in it, while a trader always has an additional flexibility to analyse the actual situation and take logical steps rather than force the trade as the robot does.

If you're passionate about coding, try to optimize the rules a bit, I'm sure it should give better results.

Regards,
Edward

Hello. I was wandering, do you include dealer's spread into your calculations or not? For example, for a buy order is it previous days' high +5 pips + spread (4 pips with GBP/USD with my dealer)

bad strategy, i coded its ea and it sucks big time

Absolutely not!
Comments like yours are the best comments on this website. I should say, it is challenging to keep up with questions alone. I highly appreciate every single advice and help from our readers.
Thank you!

Best regards,
Edward

Hi Laszlo,
I read your artical and you say you need to work out some kind of money management.
Im no professional, but if you have different stop losses and trying to work out your money management, just use the 2% rule.

Meaning, if you have a $5000 account size, 2% of that is $100. Divide your risk by your stop, say 50, then your lot size should be $2 per pip. Hope that helps. I use that every time i trade, stops are never the same.

Sorry Edward if im interfering.

hello edward!

I m working to develop a trading system,and your system with the daily average stuff got my attention...so I tested your system with a little modification..

I set the candle size to 120 pips,and the take profit at 120 pips...

When I m in a trade,and there comes a candle witch does not exceed the previous days high,or low I exit..(same thing with the doji,or hammer)

I backtested the euro/usd from feb.21,until august 11 and the results are:
there were: 40 trades
12 lossers
28 winners
+2195 pips
-769 pips

profit 1426 pips 6 months...

My biggest loss on a single trade was 150 pips...but there were -30,-20 -50 too...

My next step is to figure out some kind of money management...But the problem is that the stop losses are diferent from time to time...

Thanks anyway for your system....laszlo(sorry for my english:)

happy trading!!