Hi,
This is a break out strategy that I learned which works very well, it is very simple and uses no indicators, anyone can trade it.
This works on EUR/CHF/JPY/GBP, what you are trying to do i catch the daily move if there is one.
1. Open a 30 min chart on the pair.
2. At 8am look at the first 30 min bar when it closes draw horizontal lines at the high + 2 pips and low - 2 pips.
3. If a bar closes 2 pips above the high of the first bar, you buy. If it closes 2 pips below the low you sell. If no bar has closed above or below by 4pm close then no trade.
4. Close trade at 5pm.
5. If price closes above then reverses below the low by 2 pips you sell 2x the first position so you basically take the loss but get in the other way which will hopefully reduce the loss/wipe it / or even get you profit. Vice-versa for the other way.
6. Stick to the rules above, use proper Money management and as always try it before you go in.
Times (Change +1 in BST)
08:00 GMT - First 30 min bar opens
08:30 GMT - First 30 min bar closes = this is our reference bar.
16:00 GMT - If no trades we quit.
17:00 GMT - Close any trades. This is the only way we take profit.
I'm in the process of back-testing this but I have limited time but I am going to write automated back-test to fine tune the start/end hour.
Feel free to ask any questions.
UPDATE : Fixed the chart as chart uses GMT + 3 so open on chart is 11 and close is 20.
Below is an example from today EURO. Stop loss would have been 34 pips. Profit 94 pips. This is a system where you will make small losses/profits and now and then catch a big move. The main thing is sticking to the rules.
Making money is very easy once you have a profitable system and money management.
This is a break out strategy that I learned which works very well, it is very simple and uses no indicators, anyone can trade it.
This works on EUR/CHF/JPY/GBP, what you are trying to do i catch the daily move if there is one.
1. Open a 30 min chart on the pair.
2. At 8am look at the first 30 min bar when it closes draw horizontal lines at the high + 2 pips and low - 2 pips.
3. If a bar closes 2 pips above the high of the first bar, you buy. If it closes 2 pips below the low you sell. If no bar has closed above or below by 4pm close then no trade.
4. Close trade at 5pm.
5. If price closes above then reverses below the low by 2 pips you sell 2x the first position so you basically take the loss but get in the other way which will hopefully reduce the loss/wipe it / or even get you profit. Vice-versa for the other way.
6. Stick to the rules above, use proper Money management and as always try it before you go in.
Times (Change +1 in BST)
08:00 GMT - First 30 min bar opens
08:30 GMT - First 30 min bar closes = this is our reference bar.
16:00 GMT - If no trades we quit.
17:00 GMT - Close any trades. This is the only way we take profit.
I'm in the process of back-testing this but I have limited time but I am going to write automated back-test to fine tune the start/end hour.
Feel free to ask any questions.
UPDATE : Fixed the chart as chart uses GMT + 3 so open on chart is 11 and close is 20.
Below is an example from today EURO. Stop loss would have been 34 pips. Profit 94 pips. This is a system where you will make small losses/profits and now and then catch a big move. The main thing is sticking to the rules.
Making money is very easy once you have a profitable system and money management.
Economists have forecast 9 out of the last 5 recessions