Advanced system #1 (Midnight setup)

you have a good point, but I have no specific rules for trading gaps.
In addition, hat I found useful for myself is not trading on Mondays whenever the setup is questionable.

Regards,
Edward

Thanks for all your answers Edward. I have one last question though, how do you handle the monday gaps (for example today on GBPUSD ? How would you set your orders on this particular days ?

Hi Samuel,

Thank you for sharing your insight!
Looking for a preferred momentum with Stochastic and RSI is a simple and brilliant idea. The approach offers less trading opportunities, but those which qualify have higher chances to reach the target. Thank you once again!

Regards,
Edward

I've been reading and just wanted to show you how I use this strategy.

Once the previous day candle is closed, I would usually sit down 1 hr before european market open.

I sent horizontal lines on high and low, I then check my stochastics, and rsi, and basically if both are showing me a above oversold but below overbought in an uptrend, I would look for a break in the highs of previous day, or set a buy order 5 pips above. I usually set a 60pips profit 40 stoploss and a 30pip trailing stop. I chose the ratio cuz of this usually is a high probability trade.

I would take a trade if the stochs and rsi just crossed overbought, and after that would wait for a clear direction with stochs and rsi. I use a little more leverage which has been working for me. I exclusively use breakout strategies and bounce.

Today aug7 I made 12% of a trade scalping the days breakout{eurusd right after rate news it broke hourly support and prev daily low high prob trade}, I took about 25pips with a 1 to 50 leverage{not advisable}.

But this strategy is beautiful

Samuel

Psychologically, setting a TP ahead brings piece to trader's mind. Setting a target of 100 pips in advance is a good and practical method, but it will only work for those, who won't cry later about exiting too early and missing out few extra pips. Yes, I like the idea of setting a predefined Profit Target, especially if you're running two orders (as described in the original rules). Also if you are able to identify Support/Resistance levels nearby, you can set an accurate Target and be relaxed knowing it will be reached.

Regards,
Edward

Also, I'd like to know if you think it's better to set TP or to wait for the midnight hour to see how much profit we have. the reason I ask is because sometimes we reach the 100 pips during the day and at midnight we're still up but under 100 pips.

If we saw a doji, a trade should be closed, otherwise, we can continue trading and only adjust the stop loss.

Regards,
Edward

Hi Eward,

You say if the new candle forms is under 90 pips or is a doji we shouldn't trade for the next day, but what happens to orders already opened, should we close them or only change the stop loss ?

Hi Adewale,

News affect any trading, however, current trading system doesn't require that traders keep track of the news.

I never had a chance to test that EA.

Regards,
Edward

Thanks Edward for this great job, My question: does the news that comes out during the day affect this trade? what can you say about the Guy that did an EA for this system? Can I share this system in another forum to help my people?

Thanks for your response.

Regards
Adewale

Hi Tom,

Originally, I advised keeping one order only. However, it is possible to add another order while still keeping previous open, but only if previous order has already counting positive pips for you, e.g. your trailing stop order is protecting profits, not losses.

Now, once in a trade we trail our stops. If a new candle comes to be >90 pips, we happily adjust a trailing stop to it. If, however, candle is less than 90 pips, there are two options:
a) adjust stop to the last candle no matter what. Recommended after a tall candle has been seen the day before this short (<90 pips) candle bringing good amount of pips along.
b) adjust the stop to the middle of the last but one candle, allowing some room for price to move once it spikes outside a short candlestick; and then, hopefully, the trend will continue. Recommended if no substantial pips has been gained so far.

Regards,
Edward

Hi Edward,

First of all, a big thank you to you and your team members for creating this website with so many useful strategies.

This Midnight Setup strategy looks attractive. But there are some parts in the instructions that I do not quite understand. The paragraph below is the instructions.

Now, when one of the orders is filled – stay in the trade for the whole day. At midnight with the new daily bar open, adjust your orders and stops according with the previous daily bar following the same routine; keep trading position open until get +100 pips, then you may close current position to reward yourself. Rewarding is a very powerful tool, use it.

1.) Can this strategy cause the pair to be longed or shorted more than once? Because the instructions above says that if one of the long/short orders are filled, at midnight with the new daily bar open, we ‘adjust our orders and stops ‘. I know that Adjusting stops does not involve longing/shorting another trade but would the adjusting of our orders that involves buy stop or sell stop the pair lead to another trade involving that pair being created?
2.) If that next candle doesn’t trigger but its range is > 90 pips, would I adjust my orders and stops according to that candle? How about when it is < 90 pips?

Please let me know. Your response will be much appreciated. Thanks.

Tom
Malaysia

Hi everybody,

It seems this strategy is interesting.
I have tried to write an Expert Advisor for this strategy.

Regards,
Aryana

Hi Pipsider,

We did trade the 7th candle and locked a good profit there.
There is a description of it in the original trading rules.

Could it be we are talking about different candlesticks? Please let me know. You may also send me a screen shot at

Regards,
Edward

hi Edward,
I think is a great system to trade .i wanna know y in the example u did not trade the seventh candle after profit taking?any particular reasons??
Thanks again

Pipsrider