i know the local time in UK … i live there. reading over my last post, perhaps i wasn’t too clear. basically, GMT is only the current/correct time in UK from October through March. during the Summer months UK is on BST which is one hour ahead of GMT. for example, I am writing this post just after 5pm in UK (noon in eastern US) and GMT is currently just after 4pm.
Hi fxoperator.
I’m new on this forum (and on Forex) and this is my first post. Huray!
Alright to business. At first I’d like to thank you for your simple system.
Secondly I’d like to aks a few quick questions (hope you don’t mind)
- What is your S/L? How many pips?
- What is your Profit/Loss ratio?
Hope I made myself clear. As I said I’m very new to Forex and I don’t know many termins you use here.
Thanks in advance.
Hi guys, the biggest draw down for this method is 155 pips in two day but individual MM would be different. Today is the 10th winner. Keep on believing, you probably will find gem in this method. Good Night and Good Luck. I’ve answered most of the questions here.
Getting a members only error on your link.
Hi there, just a lil confuse about the time. Currently, London is +1 GMT, so the entry point for GBP/USD is at around 0600 (0500GMT + 1 hour) correct? But if im using Meta Trader platform, i should set the entry point for long/short when the time is 0700? as i noticed that the time in Meta Trader is 2 hours faster than GMT. Please correct me if im wrong as im so darn confuse about the time when i use MT. Thanks
MT is just a platform that you use to trade. It’s not universal and depends on the broker. Some brokers are GMT +1, some GMT, some GMT-1. You can’t just say that you are using MT and ask what time you should use. Go to Qlock - World Clock and download the desktop app that will show you time in any city of the world. Use that to show you time in London and since London is GMT +1 (right now at least) just do your thing when London is 06:00. That’s it.
hey angel, one of the reason i asked about the MT4 time is that i wanna back test the system abit, fine tune my entry point etc etc. So i got abit panicky+confuse when i look at the time frame. But thanks anyway for the qclock. Cheers 
hi there, been quite a while since I last updated here. I’m on Asian time zone GMT+8, and my country don’t have any DST. As long as it is GMT 0500H, you will enter the orders. No change.
Just thought I�d add my thoughts to this London open��. The market as we all know is OTC therefore there is no �bell� and nothing ever officially �opens�. I would think of the open in the context of �how many people are in�. I would say a typical bank spot trader gets into work about 6.30-7am (London time regardless if it�s BST or GMT) at which they will be ready to take orders that come in and work them but they will also want to catch up with the overnight news, trading range and most probably have a handover call with their asia counterparts. As for hedge funds and other players they come in when they want and probably dependant on the type of day/week.
Anyway I would say the activity from London based participant�s starts at 6 but when really starts to get going is dependant on the day and that is as easy to predict as the direction! Something as simple as tube/train strike could affect the market liquidity!
I quite like the above system and it doesn�t get much simpler!
I noticed as the market suddenly rally or trend downwards as it advances toward london session , there will be a price reversal or retracement .
when the price retraces after a major pip movement , is it advisable to sell ?
I am a newbie .
there should be a sell off or downtrend after the USA market closes . ( sometimes )
y nt put a trigger point and scalp .
any idea how to put the trigger point .
my frenz told me he uses a 25 pips range above and below when the us market closes .
so if the price shot up he can scalp .
I haven’t back tested, forward tested, demo traded, much less live traded this system yet. I’ve only just researched the several forums that have discussed it considerably, and which are listed below.
None of the content that I post here is original. It’s just my consolidation of the more important notes I’ve taken. A lot of credit should go to the frequent poster, fxoperator, though this system seems to pre-date even him.
I’m sharing this with all of you in the hopes of saving you some time.
This strategy is well discussed at the following links:
The above threads contain back test, forward test, and live trade results. Depending on your trading platform, they also contain useful resources (e.g. expert advisors for indicators and automated trading, etc.).
This is essentially a breakout trading strategy designed to consistently collect an average 10 � 15 pips per day at or near the London session open.
Most people use this strategy with GBP/USD. The rest of this description applies mostly to that pair. However, some people have successfully back tested, forward tested, and live traded with other pairs. Their rules (e.g. entry times, entry parameters, stop loss, take profit, etc.) are typically somewhat different for those pairs. Some have even claimed success with all twelve pairs. GBP/JPY and GBP/CHF seem to attract particular interest.
In short, every day between 0500 and 0600 GMT you place two orders to trap breakouts above and below the previous Asian session�s high and low prices.
The order entry time is meant to be late enough to have allowed the Asian session�s high and low prices to have formed, and early enough to precede the increased price action that occurs before and after the London session�s open. Some people ignore BST (British Standard Time, GMT+1, in effect from 0100 GMT on the last Sunday of March through 0100 GMT on the last Sunday of October every year), and they place their orders between 0500 and 0600 GMT throughout the year.
The Asian session�s high and low prices are calculated between 2100 GMT of the previous day and the order entry time.
A buy order is entered at the Asian session�s high price, and a sell order is entered at the Asian session�s low price. Some people have found they can avoid more fake outs by entering their orders some small number of pips (~5) above and below the Asian session�s high and low prices. Orders are end of day orders.
Stop loss and take profit depend more on your money management strategy. Many people will place their stop losses at 30 pips, or the opposite side of the Asian session�s range, whichever is less. That latter prevents you from opening two positions against each other, both of which might linger without hitting their stop losses or take profits in a ranging market.
Many people will set their first take profit (TP1) to their spread/commission plus 15 pips. If they trigger TP1, many people will close out a portion of their position, move their stop loss to break even (BE), and let their remaining position run. They may repeat this for several incremental take profits. They may let their remaining position run until they identify an exit signal.
For example, one person�s money management method set take profit levels at 10, 20, 30, and 40 pips. They would close out 25% of their position at each level. Also, when they were 7 pips in profit, they would move their stop loss to 1 pip profit, and when they were 15 pips in profit, they would move their stop loss to 5 pips profit.
If an order is triggered, and then that position is stopped out, some people will let the opposite order stand to try to catch a breakout in that direction. If an order is triggered, and then a take profit is triggered, some people will cancel the opposite order (this seems to be reinforced by better research), while others will still let the opposite order stand to try to catch a breakout in that direction.
Most people will only place the two opposite orders and then let them play themselves out. Some people will continue to place new orders at the same entry points throughout the rest of the day.
The difference between the Asian session�s high and low prices, the range, seems to have become a filter for many users of this system. Many users will not trade this system if the previous sessions range is less than 20 pips or greater than 60 pips. This system will sometimes work regardless. It�s probably more important to avoid this system as the Asian session�s range approaches the traded pairs Average Daily Range (ADR). The closer the Asian session�s range to the ADR, the more likely you are to be stopped out of your positions.
The market price relative to the Asian session�s high and low also seems to be a filter for some users of this system. They will only trade this system if the market price at order entry time is in the middle of the Asian session�s range, or 25% less than the high or greater than the low.
People will also avoid trading this system when there are holidays, and in some cases, news.
Some people will also avoid trading this system on Friday (and weekends, of course). Many of those people avoid trading any system on Friday. This system seems less impacted by Monday.
Alternate Methods
Some people will only trade the second break out in the opposite direction. For example, before placing an order, they wait to see which order would be triggered first, the buy or the sell order. Then, they only place the opposite order. This method seems to be reinforced by better research.
This person has some excellent insights into trading breakouts in general that could be useful for an alternate method of trading this system: