Ok thanks for the reply i appreciate that a lot. I’ve seen other traders saying that the market is pretty dead compared to what it was a few months ago but from what i’ve seen the ranges appear to be going back to what they were shortly before this coronavirus crisis began. Could be wrong but this is just what i’ve seen based on the atr. I’m just curious how long you’ve been using this strategy with success? If a certain amount of time has passed and a trade hasnt presented would you call it a day. Same for being in a trade. Would you just close out win or lose after a set amount of time has passed?
@Cloudninee I was wondering if you have anything else that would keep you out of the trade other than NFP. I’ve tried filtering through your responses on here so i didn’t have to waste your time by asking you but I couldn’t see anything. I asked tommor the same questions as he/she? seems to have been trading this already… thanks again guys. Your responses are really appreciated.
Its misleading, but although the ranges in total are not exceptionally narrow, the market changes of direction per day are killing my strategy. So I’m currently trading at a tiny fraction so that it doesn’t make any difference financially. I don’t care if I can’t think of a strategy that would work 100% through a viral pandemic.
In normal market conditions times I would close any open trade and cancel the opposite pending entry order at 1400hrs UK time, 1300hrs if its NFPR day.
Hey comandantechanch, thank you for your comments.
Other than NFP and the ranges being exceptionally huge before Londons opens, I also don’t enter a trade if I see massive rejections (long wick compare to body) once the candle breaks the range.
Other than that I don’t think there’s anything else that would keep me from entering a trade.
I often don’t force trades though, if I am uncertain, I’d rather stay out. If I’m busy and I cannot check to trade, I don’t rush and try to do it but rather just stay out.
Hope this helps!
The market has been very strange lately with the way it changes direction and massive swings back and forth of the range which would take out SL. Not much you can do though, the market will do what it wants
Very interesting strategy @Cloudninee. I too mostly trade the daily charts, but always have my eyes open for effective short-term strategies, as swing trading can be slow.
The London session is not an option for me because I am in Canada, but starting next week I am going to start testing this strategy using the following pairs, using the NY session:
EURUSD
USDJPY
CADJPY
GBPCHF
I initially thought about doing the 7 major pairs, however, after some analysis I realized that most of them correlate pretty closely, except for USDJPY which seems to have a mind of its own. So, I’ll stick with the 2 US pairs that run fairly independently of each other, along with two others I thought might work well.
With regards to London Breakout for you @MattyMoney, many dislike EA(bots), in the same way as people dislike electric vehicles I suppose, but you can still use an EA to just do the initial analysis and place pending orders. Then you could maybe manage the trade to take profit if your time zone allows. A hybrid EA/Human touch may allow you to enter markets that would otherwise be out of reach.
I also found a post on Currency Correlation on BabyPips.
I think its a good read to help pick pairs to trade on and not double your risk.
You should check it out.
what-is-currency-correlation in the learn forex section
@SamDavies the analysis takes very little time, and IMO is the best part! I’m sitting in front of my computer all day anyways, so it just makes sense to find some pairs that work with the NY sessions.
Hi CloudNinee, I ran 4 currency pairs from 6th to 10th July in Demo. Please see the table below for details of the results which is excellent. The overall performance is 50% win rate which is excellent. I plan to run next week in Demo again just to make myself more conversant with your strategy and then straight to Live. By that time if you do any more tweak in your strategy please share with us. Thanks a lot.
Currency pairs 06/07/2020 07/07/2020 08/07/2020 09/07/2020 10/07/2020 Weekly
GBP/USD Loss Loss Loss Loss Profit Loss
GBP/JPY Profit Profit Loss Loss Breakeven Profit
EUR/USD Loss Partial Profit Profit Profit Profit Profit
EUR/GBP Profit Profit Partial Loss Partial Profit No Trade Profit
Daily Profit Profit Loss Profit Profit
Profit 2 3 1 2 2 10
Loss 2 1 3 2 0 8
Win rate 50% Overall Profit
Thanks @CloudNine for the strategy. I read about this last week through babypip’s newsletter. I made an EA on the exact strategy. I am using the EA for placing the trade and run it for 5-6 hours as London open time is 2AM for me.
When I did back testing I found that more than 50% trade are profitable if the stop loss and TP is manged properly. I am trying to implement trailing as well but facing some challenge in back testing. Based on my experience so far with back testin through EA it works great for all GBP pairs. I will keep you posted about the result next week .
Hey Supshin, thanks for your comment and lovely to hear you are liking the strategy.
Yes, last week was not great but as you can see, the overall win rate still turned out okay regardless of some losses. The market is also not behaving as it should so that should compliment the strategy itself too I think.
I don’t personally have any further tweaks or changes at this point to the strategy
A few others have also done EAs for this strategy and I am hopeful it works out well for you
I personally don’t use EAs as one, I don’t know anything about coding (hahaha) but also two, I like a trader instince as it has saved and made me money in the past. Of course, like you said, it’s all circumstancial (in your case timing difference), EAs might prove helpful.
Hi Rtripath, Are you coding this in MQL4? I am trying to start coding it too but i haven’t worked with an EA based on time-frame, I don’t know if you could be of help please.
Please find the attached document for all the 4 GBP pair . My EA draws a golden rectangle surrounding the last 3 candle and placed order . First day was very impressive performance by my EA. I am up 70 pips on GU. 55 on GC and 90 on EG . I manually closed the order on GJ after 35 pip loss which was a mistake otherwise that would have been a winner with 40 pips as of end of NY session.
As mentioned earlier I can not take London time due to timezone issue. So I built the EA purely based on strategy mentioned by @Cloudninee . I am sure there may be some off day as well. But at least a good start for me today. 13july.docx (28.0 KB)
