Advanced system #1 (Midnight setup)

If to use Sunday candle, we will never trade Mondays, since Sunday candle will always be less than 90 pips required by strategy rules.

In fact, I personally don't like trading on Monday, since the risk to get a losing trade is higher as market makes its mind about its new week trend.
But, if we don't want to miss Monday trading we always use Friday candle to evaluate possible setups for Monday.

Regards,
Edward

Hi Edward!!

I have a small doubt here....how do we apply this strategy for the last candle of the week? Do we enter trades according to its high and low or should we consider the sunday candle. Thank you.

Hi,
Thanks for your comment.
My position regarding this is that if variance of last high and low is less than 90 pips risks for orders to be open in both directions followed by stops being hit increases, while with candles taller than 90 pips it is less likely to happen; plus tall candles send a message that market is certain about trend direction.

Regards,
Edward

Hi, I have heard about a similar concept before; key difference though is that a trade should not be open if the variance of last days high and low EXCEEDS 80 pips; you state that the variance should not BE LESS then 90 pips.....
Thanks
Arjan

Hello Edward,
i really have to thank you so much for your site of inestimable value.
i was actually in the wood as regards fx trading until i discovered your wonderful ideas.
i sure will stick to you like a salamander since your site is true route to success in forex trading.
presently i am using the parabolic SAR+ADX system and it is quite amazing.
i pray God to bless u and your wonderful wife.
kaykay
nigeria

Technically, yes, it is supposed to be 200 pips then.
That's your initial stop. Everything else would depend on your risk tolerance level.

If a stop is distant, additional market analysis may help.
Answer these questions: what are nearest support/resistance levels, where are monthly pivot levels located, where are Fibonacci levels, what trend lines do you see, and finally what id the Daily average range for this particular currency pair?

This additional information should help identifying best logical place for the stop. The rule is: if you see few studies merging at certain price levels (for example, pivot level may merge with one of the Fibonacci retracement levels, there also can be main trend line support/resistance nearby) - this conditions will point out at the area where price is expected to stop and then bounce back or break through. That's the place to have your stop around.

Each trading situation will be different. There are no fixed rules. Without such additional chart analysis, the simplest solution would be to set a fixed stop, for example outside the Daily average range or even simpler - 100 pips away (least preferred but undoubtedly the simplest way).

Regards,
Edward

Great Edward
I must confess, this work is wonderful I mean your strategies.My major problem about this strategy is setting stoploss, incase the pips is over 200pips, is it mean the stoploss will be 200pips?

hi Edward,
your tehnik works very2 nice to me. i also add TS 45pip for my safety.
thanks.

Thank you, for your help, Thomas. Just in time! To add from my side:
Yes, I trade for a living + run a small business, to which I give more weight when the time question arises. Still, trading, and now a great experience of running a website and sharing experience with traders, is an important part of my every day life.

Among my favorite strategies at the moment I'd name Advanced #1, #3 and #5, simple #5 and #8, complex #5.

Regards,
Edward

Yes, that flipping would be the correct action. During sideways price patterns which we observe now with GBP/USD such back-to-back losses may take place.

The biggest break through would be if we could identify and avoid such range-bound conditions.

I'm working on one concept now, which should detect upcoming ranging markets; once tests prove it, I'll gladly share it with you.

Currently the other ideas to try out are:
(here we start using indicators, although my initial goal was to make this Forex system indicator-free)
1. Placing ADX (10) and avoid trading while ADX stays below 20 mark.
2. Or placing MACD (12, 26, 1) indicator and draw two horizontal lines at +30 and -30 levels, let's call it 30/30 corridor. When MACD histogram is inside the 30/30 corridor, we expect some price ranging activity. Outside the corridor the sky is clear.

I'd welcome any comments and ideas about further strategy development.

Regards,
Edward

A more clear understanding of Advanced #1, please. I currently have a short GBP/USD that is 'losing' by about half the previous day's run (the sell order triggered at the suggested pip level -5 from previous day low. If the trade gets stopped out (for a real loss of $2,250), and moves just 5 more pips, it will take the second of the two orders (i.e. BUY) placed at midnight. Is this flipping the correct action? How often, generally, would you see both orders from the same day stop out with back-to-back losses? I understand that when a real loss is taken, you need 2x the profit to return to break-even. Conversely, with a real gain, only takes 1/2 of a loss to return to net of zero. Thx.

Greetings Texas Bruiser!

I'm Thomas, nice to have you here.

Which strategies would it be if I had to choose 7?
(No strategies available makes users unhappy, too many strategies available makes choosing difficult. I understand :))
My 7 would be:
Scalping 4th. Simple 1st & 4th.
Adv. 1, 3, 4, 5.

Rotating among the strategies is difficult. I'd take one as a base and stick to it, and then work to improve it over the time as I trade.

Do I/we trade for a living? :) I'm personally close to that goal, but the need for financial stability and well being of my family still keeps me going to work every day.
Edward's family, however, does, as far as I know.
They trade and also run a small private business.

Expert advisers (EAs) or Expert systems must be an excellent way to automate ones trading. As about myself, I haven't reached that stage of my trading advancing yet.
In my opinion, one should have programming skills to be able to code the system for himself, because if you don't, each time you want to add or change system rules you need to call a programmer again.

You also mentioned someone who was able to get 210 pips a day while trading actively and thus paying lots of commissions/spreads. It was probably a full time scalper. Scalpers initiate large amount of trades for the sake of taking few pips in each trade. By the end of the day if to calculate their spread cost, it looks enormous, but that is not a problem if a day brings +200 pips profit.
I'd say, unlike in any other market, in Forex as long as you make profit day after day, spread cost becomes of a less concern.

:) Good luck!
Thomas Andreas

Hi Jason,

No, never tried, although wanted to.
Seems like an interesting study, although a bit complex, that's why I delayed to research on it.

Regards,
Edward

Hi Edward,

Ever tried Ichimoku? I wasn't sure where to post this.

thanks,
Jason

Thanks Edward;your efforts give hope to the novice traders like me.
cheers;
REZA