Trading the Asian High/Low
I first learnt this approach from Jimmy Young although I am aware that there are many different versions. Clearly I am not going to reveal Jimmys tehnique as this is proprietary information. However I have adapted it sufficiently for my own use to feel comfortable that I am revealing what I do and not what Jimmy does. Indeed I introduced to Jimmys group the idea of using the 60SMA Jimmy is so fond of as the stop for the trade. I will outline the rules and the 2 winning trades for today. I trade GU and GY
At the europe open mark the high and low for the day. Trade the breakout with the stop 1 pip below the 60sma for GU and 50 pips for GY. The trade is closed out at a 1R profit level. If the stop on the GU is less than 20 pips then look for another reasonable place for the stop in the region of 20-30 pips. If it is more than 40 with spread included do not take the trade
This simple technique has had a net 6 winning trades this week and net 10 since the start of September. I have traded it since October last year (with various changes along the way) and have not had a losing month. The worst monthly return based on a 2% risk per trade was 3% and best was 32%
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