Hi guys,
Someone sent me a PM asking why this system works. I though that was an important question so I'm posting my thoughts on it here as well.
First off, I'm not an economist or a statistician, this is just my educated guess as to what's at play here. If anyone else has any ideas feel free to share them.
If you look back in your charts, on any pair, you'll notice that the weekend gaps tend to be the places where trends begin and end a lot of the time. You'll also notice that the weekly highs and lows tend to happen on Mondays and Fridays. Here's a graph I borrowed (aka stole) from another forex site. It shows what day of the week the weekly high/low was on for 4 different pairs. The data was taken from 2008.
What this system is doing is basically betting on the fact that trends start on Mondays more than any other day of the week. By getting in on the break of the Sunday candle we're hopping on the trend right at the start. Does it always work... nope, but because we're getting in on the trend before the trend even exists we're making major profits when it does work!
Any thoughts or comments??