Developing a system #20 (Daily high/low trading)
Submitted by User on October 20, 2009 - 06:31.
Hallo,
so now i will tell you my idea of a forex trading system.
this system is not proved or anything like this, because i do not have time for this.
i hope you guys can help me, to finish this system so that we all can use it.
Short Info:
i have to create a system that can be trade even if you do not have time for forex trading ;-)
The System:
So the System is based on trading a new high or a new low for the day.
so for example you have got EUR/USD.
just look at the high an low of the current day at evening.
set a market order to BUY if it reaches the HIGH of the day.
LIMIT should be : 25
TRAILING-STOP: 25
the same for SELL order.
so if it reaches a HIGH or LOW i think most of the time the course will go on and make a new high order low for the new day.
if not, and it returns after 15 pips of a new high/low you just get a negative trade of 10 pips for example.
I hope you guys can help me developing this system.
Perhaps it is better to set up the LIMIT and TRAILING STOP to 20 or 15 or 10?
because often the system reaches the previous day high/low and falls back.
Please help and comment
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
How about placing pending orders of at least 10 pips above / below previous days highs / lows. I have watched this myself and it tends to be fairly profitable with .../JPY pairs.
I came across your post today, Iam trying it now with a few modifications will get back to soon with more inputs.
This trading method is not new and is being used by traders all over the world. Needless to say it is a profitable trading method. However, like any other trading method this system will also incur losses.
The key to this method is to pick your trades. You do not necessarily have to enter everytime daily high/low is crossed. For example, be on guard when you see an inside bar.. or a small range..
I think you must combine 2 system. 1- your previous day Low/Hight and 2- shadow trader, it's mean you must wait fail trade and another trade must be yours, perhaps 2 or more trades will be success. Then wait fail trade and begin again and again...
Gr8 idea but i came accross this idea few years ago and when i started checking 10 years history and than created a calculator to make EA but was not that profitable ,every 15 days on an average you will find one loss of whatever stop limit you set and it will spoil all your one week trade,even few days I found 0,6, and 7 pip it means it will hit the target only one side and the other side loss .Do the simple math ,profit-loss=loss,my suggestion is forget about this idea and try to develop new idea.
Scott
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