I’ve found this strategy online, and I wanted to know your opinion on the matter.
How it works: Basically, you wait for the close of the 7am GMT candlestick close on the 1 hour timeframe, then you start a buy stop order 2 pips above the candlestick’s high, and a sell stop order below the candlestick’s low. Whenever one order gets filled, you cancel the other one, put your stop loss 5 pips above or below the 7am candle high/low (depends on whether you went short or long obviously), and set your take profit to 50 pips. I’ve backtested this strategy, and in January 2020, you would lose -34 pips on the EURSD.
I’ve also modified it a little bit, by inserting a 21 MA on the chart, and only put the buy if price closed above the 21MA, and sell stop order if price closed below 21 MA line, and with this method not only you would get a 70% winrate, but you would get 177 pips in January on the EURUSD.
What’s your opinion on this? Do you think this strategy is worth it?
I did, since february 2019 to january 2020 I achieved 1400 pips, something like 100 pips or so per month, only on the eurusd. My question is, do you know how to make this even better? I will try it on my demo account and be sure to check SR levels aswell, but im trying to make it better so I can start with it on my real account. So far, the worst month was october, where I lost 4 pips on the whole month.
Also, you are supposed to close your trade, whether its a loss or a win, by the end of the day (I suppose by midnight), if sl or tp hasn’t been hit yet.
Sounds like the London breakout , the way it works best is the risk reward plan rather than the 50 pips because you cannot say it will do 50 pips and you end up forcing a trade. Work on a 1.5 ratio and then over time it can win. Works best on GBP/USD however saying that because the pair has being news driven recently its very hard to trade using technical alone.
On the website where I got this one, it also referenced the London Breakout, but I prefer this one to be honest, don’t know why. I also agree with the 50 pips being too forced. I will try it with 1.5 RR, and also 2.0RR and compare it. Would you suggest keeping the sl throughout the trade, or move it to breakeven at some point?
Stop loss is the great debate, move to quick and you get stopped out. A good happy medium is set target points to scale out and trail the stop hidden behind a 20 or 34 moving ave
As stated, these are versions of the London Break-out Strategy, also called the Big Ben Strategy.
I am running something similar for just over a week, mostly on the Dow index value, otherwise mostly on GBP/USD. The modifications I have made are that once the initial trade is triggered I set 3 pyramid trades ahead of it in the same direction. Using a 1:1.5 r:r this means that as trade 1 is hitting its TP and closing, Trade 4 is just opening. when Trade 2 hits its TP, Trade 6 is opening.
And so on and so on until either London close or price reverses and you start to get closes on the other side of the MA.
Last week was the first full week of this system: I had 4 winning days out of 5 and while running very small positions (initial risk 0.5%) I grew my account by 4.6%. Happy with that.
I think anyone who places lines on a chart and thinks that “the market” is aware of your lines, let alone will respect your lines and act according to your analysis… is, simply put, a fool. And yes, that sentiment extends to most technical analysis. Please explain to me how “the market” becomes aware of our doodlings of lines on charts? If the energy expended on charting past history was applied to understanding what forces move economies, what creates fear, what creates confidence among the humans doing the trading, you’d have a lot better chance at making money. But, as it’s necessary for someone to lose in a trade before someone else can win, I appreciate all that TA does to confuse and confound the masses. Please keep up the effort!
A little correction here. The agenda is not allowing the market to be aware of our lines, the market care less as you are trying to insinuate. The goal is to allow ourselves to be aware that these lines should generate profit when traded consistently for years.
Tell this to a successful technical analyst. With your fundamental knowledge of Market news, if you take your time to understand technical analysis and merge Technical and fundamental, you will have a greater chance of making money if that is the case. TA is as important as Fundamental and they are independently detached from each other. They can be merged and they can make pips on their own.
I am a new bee and trying to learn quickly. I love this concept of setting up different trades in both directions. Where can I get more theory or example please? I looked up BigBen strategy but it is not same as simplified in your message. Appreciate it
Are you a profitable trader? If so, would you please share your experience in trading and how we might use fundamentals to trade? Please tell us a little bit about your methodology and strategies. Perhaps a new thread might be best so we don’t hijack the OP ‘s thread.