I can’t claim credit for that London breakout strat I posted way back when. It was from another site but read it and thought some here might like to use it. My preference is to trade off a newly formed single daily candle. Usually a few hours into Asian or Frankfurt/London open and closing at New York end of day bell. I look for the clearest examples I can find from twenty or so pairs of OB/OS.
thx for yr reply
yes, stupidly wasnt checking daily candles for long time till recently.
silly Q,OB/OS stands for over bought/sold?
thx
Indeed it does. 
Evening folks. It looks like the EURUSD gapped down on the open as expected. Those of you who were in on the trade I noted on Friday should have picked up a small profit. I’ll keep an eye open for the conditions for the pre-US open trade for tomorrow and I’ll update the board.
I also have another trade that has been successful that I will provide the details for some time next week (I would right now, but I’m a little short on time). There should be some great trading opportunities during this overnight session as well. Good luck on those, and I will post again tomorrow morning. Cheers!
Good morning folks,
The conditions for our 7am trade did not line up this morning, so we are not in for this morning. However, there was plenty of profit to be made last night during the EURUSD’s bearish move. Hopefully your strategies last night paid off for you :). I will keep an eye on this trade for tomorrow and update the thread later today with another system.
Happy trading!
Good afternoon guys,
I just wanted to note that the intention of this thread is for those of us who have developed successful strategies to “share some of the wealth” with those who are struggling. The reason? No I am not a FX socialist…haha! I just wish that someone would have lent me a bit more of a hand when I started. So please feel free to add to this thread as much as you would like. Hopefully this really helps some folks.
Also, if you have any questions about this or any other system, please ask. I don’t profess to know everything (I don’t think anyone on this board does), but I will provide you with the most honest answer that I can…even if the simple answer is “I don’t know.”
Another thing you should know is that these systems are not intended to replace general knowledge about how to properly utilize the readily available tools of TA. I regularly use Fibonacci, MAs, Stochastics, and Volume indicators in addition to studying how the market moves on a daily basis at various intervals (PS. don’t forget support and resistance). There are many great books and other learning materials out there for you to check out online or at your local library/book store.
With that being said, here is another system:
System Type: Short Sell
System Name: AU Open Trade
Currency Pair: EUR/USD
Interval: 30M
[B]Setup:[/B]
Entry:
Time is 3:30pm CST (enter at the open of the 4pm CST bar)
Open is greater than close (for added stability, try to stick with an up close that is around 2-5 pips higher than the open as a minimum)
Exit:
At the open of the 7:30pm CST bar (this is regardless of where your stop/limit stands)
S/L & TP:
S/L: 40 pips
TP: 10 pips
(If you are more risk averse, you can tighten up your stop to 20 or 30 pips…as always, a tighter stop is a trade off between a successful winning percentage and the amount of loss incurred).
The goal of this trade is to take advantage of the correlation between a bullish US close and a bearish AU open. Here is how the numbers break down:
Lot Size: 100,000 ($10 per pip)
Test Period for these numbers: 06/03/09 - 02/11/11
Additional periods tested: 10 Years (5% variance from 19 month period)
Gross Profit: $21,947.00
Gross Loss: $12,837.00
Total Net Profit: $9110.00
Total Trades: 234
Winners: 179
Losers: 56
Winning % = 76.5%
Please keep in mind that all patterns can end at any point based on major movements in the market. This is why all back testing of strategies should include testing for a long period and short period of time to establish their initial validity and whether they are still profitable. I have successfully traded this system for around 7 months with a winning percentage that mirrors the 19 month statistics.
I will keep an eye open for conditions to line up with this trade tomorrow and update the board for this and the 7am trade. Cheers!
I will throw out another.
This is a week open gap strat that I have tested and traded a few times.
I back tested EU as far as I could I don’t remember how many years that was.
My test was simple if a gap shows up between Friday close and Sunday open take a trade in the direction of the gap the trade runs until the next day close.
That test made good profit.
When I trade it live I open the trade when the gap has closed. This can be a pending order. I place a stop based on close by S/R I try to get it at least 50 pips away more is better but it makes the trade size smaller. A TP can be S/R or you can look at ATR of the last few days to get an idea of how far your trade may go.
If a day goes by and your SL or TP have not been hit close it out.
Simple and not to exciting I tested GU and did not get very good results EU was the best followed by USD/CHF. I have traded this live a few times and won each time.
Hey Shr1k, thanks for the added strategy. I would have to agree that this strategy should be profitable. I have not back tested, but from simple observation with time, I have seen that (especially with the EUR/USD) when the Friday-Sunday gap occurs, trading in the opposite direction of the gap with a target of around 40 pips usually pans out. Just this weekend I pointed out a profitable trade over the gap and, adding a similar strategy to yours by immediately placing a long order after that gap, was profitable also.
Great strategy!
Good morning! The conditions did not line up for our 7am, pre-US open trade this morning, but I will update the board later as I keep an eye open for conditions to line up with our AU open trade. Happy trading today, good luck!
Well, it looks like the conditions for our AU open trade didn’t line up today either. I will update the board tomorrow for both of the trades. In the meantime, there is plenty of profit to be made in the overnight session. Good luck to everyone, have a great rest of the day!
Good morning folks,
Hopefully you took advantage of some of the profits to be made over last night’s bearish EURUSD session.
The conditions have lined up this morning for the 7am trade. I will be entering at the open of the 7am CST bar. The trade has a bit more risk this morning because we are near a support point, nearing the end of a pretty good size bearish move, and in the middle of a bit of an overall, slightly bullish move.
However, we should be able to gain 20 more pips which will put us within around 10-20 of a support point. Also, the volume behind the bearish move still looks good. In addition, our stop is just above resistance so there is a decent chance we will not be stopped out. Here are the entry, S/L, and TP prices:
Entry: 1.35121
S/L: 1.35721
TP: 1.34921
All update you as soon as the trade is completed. Good luck!
The 7am trade was successful this morning, congratulations if you took the trade. Here was the outcome:
Entry: 1.35121
Exit on TP: 1.34921
Profit: 20 pips ($200)
Trade length: 2 bars
I will keep an eye out for the AU open trade later today and give details. Good luck on the current reversal!
Hey friends,
There was much profit to be gained today during the US bullish session. Hopefully your long orders were in and were successful.
The conditions lined up for the AU trade today and I am in at the open of the 4pm bar. Here is the break down:
Entry: 1.35681
S/L: 1.36081
TP: 1.35581
I will be out of the trade either by the open of the 7:30pm CST bar, if I hit my S/L 40 pips, or my TP of 10 pips. I will update the board as soon as I have the outcome. Cheers!
The AU open trade went the other way on us today just slightly. The bearish move peaked out at around 9.5 pips down before turning around. The exit point was at 1.35818 (the open of the 7:30 CST bar). This is one of the cases where you would be saved from a greater loss by exiting at the open of a certain bar, rather than holding on until the price action reached your S/L.
I will update the thread again for the 7am and AU open trades again tomorrow. Good luck tonight!
Good morning guys,
For the second day in a row, conditions are lining up for the 7am trade. I am in at the open of the 7am bar until I reach me TP of 20 pips, my S/L of 60 pips, or I will be out by the open of the 11am bar (regardless of where my TP and S/L stand). Here’s my setup:
Entry: 1.35730
TP: 1.35530
S/L: 1.36330
Good luck!
The 7am trade this morning was a success. Because the EURUSD has been recently bearish just before the open, we have seen profit on this trade within a very short period of time. Following the short-term trend, there has also been an immediate long opportunity directly after the US open retracing the previous night’s bearish move. Here were the positions for the 7am trade:
Entry: 1.35730
Exit on TP: 1.35530
Trade Length: 2 bars
Profit: 20 pips ($200)
I will keep an eye open for the AU open trade later today and update the thread if it materializes. Based on the recent trend (barring any major current events), we will probably see the pair range within the 20-40 pip area from where it is now until later this evening.
Good luck with your trades. Cheers!
The conditions just lined up for the AU open trade. The EURUSD has been ranging near the R1 level for quite some time, so there is a very good possibility that this trade will work out in our favor (in addition to how this trade tests historically). Here is the setup:
Entry: 1.36081
TP: 1.35981
S/L: 1.36481
Good luck friends!
The AU trade started out in the opposite direction for us, but ended up coming back around to about break even (if you decided to stay in just a bit longer than the open of the 7:30pm bar, you ended with a profit). Here are how the numbers broke down:
Entry: 1.36081
Exit at open of 7:30pm CST bar: 1.36117
That’s all for today…I will update the board tomorrow for the 7am trade. Good luck in tonight’s session. Ciao!
Good morning fellow FXers,
Hopefully your strategies rewarded you the benefits of the bearish move overnight (which has certainly been the recent trend).
The conditions have once again lined up for the 7am trade. Here is the setup:
Entry: 1.36068
TP: 1.35868
S/L: 1.3668
I will be in the trade until the open of the 11am CST bar, if I reach my TP, or if I reach my S/L. As always, I will update the board as soon as the trade is completed.
Good luck all!
The bulls ran away with the 7am trade this morning. We almost held on until the 11am bar, but they blew through resistance at around 10:40am and have continued to run away with the pair ever since. Although a retracement of the previous night’s bearish gains has been the recent trend, this is something different. Keep an eye open for a ceiling on this move…trend traders: this may be the beginning a new trend (if you are a trend trader, you have already-likely moved your R1 and R2 marks).
The AU open trade will not happen today because the market closes at 4pm CST. However, there may be an opportunity to trade the gap between Friday’s close and Sunday’s open. I will update the board with my take on the direction of the gap later this afternoon.
Happy trading!