I have been using this strategy along with phil´s strategy… Im having some very good results with it… I dont know how to code… but if someone could create an ea from it would be awesome… this is for sure a winner strategy:
So lets see how it Works:
So when looking at the above screen shot of my MT4 you can see the strategy is very simple. It starts every Sunday night at 00:00 or the beginning of the week. If you are using Metatrader 4 you can just click Ctrl – Y and it will set up lines for you at the beginning of every week.
You then draw lines or a box like in my screen shot the size of the first candle of the week. This will make the low of that candle your sign to sell and the high of that candle your signal to buy.
If you are using MT4 then you can use the Monday Breakout Indicator I posted which I found online.
You can also download it at the bottom of this page.
Very important I recommend adding a 20 pip buffer in the high and low so that you can prevent getting hit by a bad signal, since I have seen it happen before when the price just goes 1 or 2 pips below the low or high and a trade is started just to get hit with a stop loss when it goes the other way. Normally after 20 pips the price is going to keep moving in that direction.
This strategy works or should work on all JPY pairs but I have only trade on GPB/JPY
The rules of this strategy for stop loss and take profit are:
-Two pending orders one in each direction
-Add a buffer of 20 pips to the buy and sell lines
-Stop Loss is the size of the box.
-Take profit at TP1 then move stop loss to break even and ride it out to TP3
Here is the indicator I use.
If you set up the indicator you will see how easy this strategy is… If anyone can code it i would be very good for all of us… because the time is vary bad for some people to trade this strategy
So I’m guessing this method assumes that if the price, within a week, breaks down/upward compared to the first candle of the week, it will remain below/above it through out the week? Perhaps this is a characteristic of YEN pairs?
Hi sk0ll, thanks for bringing this strategy to babypips. I’m still not clear on how you take your profits. Does it mean that you buy up to 3/0.3/0.03 lots and close one as 1/0.1/0.01 lot (ie 1/3 of total lots) when it reaches tp1?
Also, when the price gets to TP 2, do you move your SL to TP1 or is it left at BE until TP3 ?
Thanks
What is do is :
for example : if I buy 0.9 lots … I close 0.3 on TP1 , 0.3 on tp2 and 0.3 on TP3
always 1/3 , 1/3 and 1/3
I only move SL when i Reach TP1, Because I want to have my trade BE as soon as possible… after that my trade is BE so i keep SL always in my entry position, that way i have more flotation on the trade, I already made some profits… so I wait and see what will happen!!
Thanks!
p.s Im looking for coders for this strategy…
THIS week I had 1 Loss on the long side… and TP1 reached for short side
Thanks sk0ll for your timely response- I appreciate it so much
I would also like to know if you can still take a trade once it is past wednesday unlike phil’s strategy.
Also, can one take more than two trades in a week?
If I hit TP3 on short or long side im done for the week… if not im still in the game Until Wednesday… … I close all positions on friday… if they are floating
Hello again sk0ll,
From the look of this week’s movement and according to your rule, did the GBP/JPY make up to four losses, one TP1 on the short a BE on the long before it got to TP3 on the long?
Sorry for the loss pal.However, I was just wondering, how many strategies do you trade? and how do you manage them? because I know that phil’s strategy makes use of two pairs and with this strategy, it makes it three. How do you handle it all?
HI sk0ll, I’ve been studying this strategy and was wondering… again, whether you carry out more than 2 trades/orders in a week. Sorry for asking but you really didn’t answer it precisely the first time I asked.
Also, when price hits TP1, do you put your BE at the High or low of the monday candle or do you put it at the point where your order was executed (ie high/low plus 20pips)? I’m asking this because from past events, price tends to retrace close to the point of execution of order but not to high/low of the monday candle.
