I’m posting this in regards to a trading idea that I’ve been using for the past two months on a live account.
Success rate and personal experience -
My account growth in that two month window has been 300% (500 capital to 2000) on approximately 3 hours of trading Monday � Thursday. Win to loss ratio is 100 � 0 on approximately 90 trade.
Concept -
This trading idea involves scalping euro / chf during the tail end of the New York session (14:00 GMT-6) through to the end of the Sydney session (0:00 GMT-6). The concept is to scalp the euro / chf during these low activity hours when volatility is rock bottom (allowing for more generous leveraging) and there is a sideways trend formation. Because the markets close early on Friday’s and open late on Sunday’s, I only use this system on Monday’s to Thursday’s.
Method -
When the US markets are closing at approximately 14:00 GMT-6, I open my trading platform and look for these characteristics on the euro / chf chart.
-Movement needs to be low, within the 10-15 pip range.
-There must be a slideways trend.
-A definite support point must be forming. I define this as a point where the currency hits at least twice.
Most days these three characteristics are there. When you do see these characteristics, place a buy entry order 1 pip above the support point (on the ask chart). Set the profit limit to 2-3 pips and the stop loss at 15 pips. When the target is hit, rinse and repeat. Do not trade after the Syndey session.
Goal -
My personal goal is 5-6 pips daily, or 2 trades. I often make 3 trades a day, though rarely more. At week 9, my projected weekly profit is 400 dollars with 200k lots on a 2k account. It’s approximately 3 hours of work a week, setting up orders and stepping away to do other things. As my account grows I hope to double, triple, and quadruple the lot sizes.
Rules and challenges -
It’s very important not to over-trade with this system. You only ever trade when the three characteristics are perfectly matched. If the currency pair is volatile during the Sydney session, do not trade. If there is no support point, do not trade. If there is a positive or negative trend formation, do not trade. Perhaps most importantly, do not open new trades if the Sydney session closes. When the European markets open the zigzag pattern that is the basis for this trading idea goes away � that stable support point.
Lastly, because these are off trading hours you it not uncommon to see both wide spreads (5,6,7 pips) or erratic spreads (quick changes from 1 pip to 5 pips). Depending on how erratic these pip changes are, it is advised that you place your entry orders on the bid chart 3-4pips above the support point (as opposed to 1 pip above the support on the ask chart) so that you can catch these shifts at the most opportune time.
Pictures -
This snapshot is for the ask line first two days of the week. The blue line represents the support point while the letters are the trade opportunities. I did not capitalize on all of these opportunities but did manage to make 8 pips, or approximately 160 dollars.
I’m posting this so that I can get some commentary on it. I’ve had great success (so far) but I am inexperienced compared to many folks on here and I am sure I could use some advice. I’m not a professional trader � I trade part-time but am very enthusiastic of this art and want to pursue it as career at some point in my life.