You can use lawgirl21’s 4 bar breakout with any four hour plus consolidation. I’ve been keeping my eye on the consolation between the NY close and the Tokyo open. It seems like a few nights a week there’s a nice little move between the Tokyo open and the “Tonight Show”. The last two weeks I’ve been pretty successful catching 20-30 pip set-it-and-watch-TV trades
I’m using a little of lawgirls 4 bar strat and a little of another Tokyo open strat. Both strats take trades only in the direction of the “major long term” trend. The Tokyo open strat uses 1 hour bars with the 10ma and 140ma to filter trade direction.
For those of us living and working in the US time zones, lawgirl’s 4 hour bar breakout with the 3 period RSI filter looks to be a nice way to do some overnight trades.
d-pip, the one thing I did like about that thread was the 3-period RSI, it looks to be quite good at calling strong trends at their onset. However, it seemed to me the weekly period RSI hardly moves at all; it seemed kinda worthless. I went with 1h, 4h, and daily 3-period RSIs and looked at it all on an hourly chart and saw some strong moves that were clearly indicated across several different pairs.
Yeah the weekly RSI is probably a little over kill, I’d take the trade if just the daily and 4h were moving in the same direction.
FYI, I’ve attached a PDF of the Tokyo open strat I’ve been also using, from over on the Forex Factory site too, a thread titled “Simple H1 GBPUSD EA”. The thread is about an EA that some of the guys have been using, tweaking, and trading with. They’ve been playing with the MA setting, some use 10ma & 197ma, others use 10ma & 140, and some use just the 10ma.
I’m not using the EA, I just try to follow the entry strat, watch the screens for the lawgirl21 break and enter and manage the trade manually.
Also, I’ve been trading this Tokyo open time frame with just EU, I don’t know if I’ll add other pairs or not.
I also agree but I also want to point out two corrections: her 4 bar 1H strat. isn’t just any 4 hr period, it is your broker’s start of a new day. Talon - I don’t know where your broker is located but FXDD or IBFX, U.S., to name two have starting times in the afternoon. FXDD starts a 4pm CDT so one can set the channel at 8pm, look over potential trades, do a setup, and then watch tv, read, go to bed etc. Her Weekly RSI is very important for Thu. & Fri. She mentions using it almost, repeat almost, exclusively in late week trade setups.
My apologies if you have started a new thread and for me not posting there but I saw the latest entries here & felt I should comment. d.
I know about the first 4 hours of the trading day. I intend to adopt the concept of 4 H1 breakout combined with some of my current trading ideas. The core of this method is interpret the trend. Next week, I will try to look for trade opportunities using this trigger.
I havn’t started a thread on it. I’ll leave that to you if you want to. for my live broker I use Oanda and IBFX for charting. Time zones always confuse me. I wish everyone would use GMT
I read this thread ages ago and have been trading the system for many months now. I think its fantastic. I’ve signed up specifically to ask you guys a question.
When a new daily bar appears and the price is such (i.e. its already at the previous daiy hi or lo) that the broker wont allow a pending buy/sell stop. Do you simply do a buy/sell with the sl and tp based on the daily hi lo figures. Or do you just keep out of the trade ?
Secondly, do you find that Friday trades always end up in a loss on every currency pair ?
I made an EA to test the original idea presented by TalonD. I have only tested GU so far. The results are very up and down.
I only looked at the past 300 days. It does show a small profit over the test. The thing is looking at the equity curve for some months it takes off like a rocket with almost no drawdown. Then for reasons I have not yet looked into it falls just as fast. I need to look closely at what the charts looked like during times of loss and profit. I may be able to see if any sort of filter or adjustments could be applied to the strat to eliminate or at least minimize the long drawdown periods.
My advice to anyone trading this is if you get a string of losses put the brakes on live trading and demo it until it starts to make money again. I will say the profit periods are impressive and defiantly reason enough to keep looking at this strat.
When it comes to forex I’m a follower, not a leader. For filters would RSI work or the volume indicator (or both)? I’m not too keen about stochs as it seems to point out the obvious but it may filter better than the 1st two suggestions, I don’t know. d.
That sounds like a splendid idea. I’ll try and write an EA. Test it over a month, 3 months and 1 year time period with variable lots, tp and sl values.
As for Fridays, based on my experience i.e. all my trades failing by hitting the sl, i wonder if it would be possible to implement a breakout reversal strat which just flip the sl and tp values and sell at high and buy at low ? Does this sounds plausible in your vast experience ?
Indicators keep me out of the best trades so i don’t pay any attention to them.
I’ve written(got written) the EA and am now running with 6 currency pairs. SL and TP values tweaked to each currency pair based on 3 months of back testing. Fingers crossed for a good result.
It should, must not be closing for a reason, which you’ll have to debug. Any time settings in the code, not using the correct bid/ask to close, slippage, etc.
I get lots of junk mail some of it trying to sell the latest forex holy grail. So I got this one that says one trade per day at a specific time. Set it and forget it. I clicked on the link and scanned the usual slick advertisement. My curiosity was up but not enough to shell out 19.95. usually you can find anything you want by searching google so… and you Brits should appreciate the clever word play here soo…
[B]google’s your friend and Bobs your uncle ![/B]
Surprise, this holy grail is esentially the same as my daily high low. The difference is that the pending buy and sell orders are set at 25 pips above and below the previous day’s high and low. The theory is that if price moves that far then it shows momentum and price is likely to continue in that direction to the take profit which is 50 pips past the entry point.
This is suposed to be a low risk high win rate trade.
I googled the phrase ‘Bob’s your uncle’ a variation is 'Robert is your father’s brother’
LOL
There is also a part B trade which is riskier lower win rate but shoots for a higher pip return…
worth a test I’d say. I havn’t read all the details of the part B trade yet but will share the info after I do. Oh I forgot to mention the stop loss… actually I don’t remember it. Will have to go read that part again.
