I will be giving you the rules behind a very simple and extremely profitable trading strategy. This strategy has yielded 815 pips in the last 20 trading days and is very profitable due to the 4:1 risk reward ratio. I have other systems with high risk reward such as this, and do not recommend trading any strategy that is not AT LEAST 2:1! Having said that, I would not recommend using more than 3% capital on any one trade. For example, if you have a $10,000 account I would use 2.0 standard lots, or 20 mini lots in this strategy. AT the end of each trading week, re-evaluate your balance and do 3% of each trade for that entire next week based on Fridayâs balance. This results in COMPOUNDING. Without doing this, you would have made about 80% last month rather than 100%. Itâs up to you. These are the rules:
Find the high and low from 6 pm to 8 pm EASTERN STANDARD TIME (22:00-0:00 GMT on my FXCM MT4 platform) on the USD/JPY pair. As soon as the high OR low is broken after 8 PM by 2.0 pips (not 1.5 or 1.8 pipsâŚit must be exactly 2.0 THIS MATTERS!), you issue a buy or sell order. When you place your buy or sell make sure you do two separate orders. You will be taking profits at two different levels and that is the reason for this. If you have a $10,000 account do two separate 1.0 lot orders. If the high or low is not broken by 10 pm EST DO NOT ENTER THE TRADE!! As soon as your trade is opened, place a 15.0 pip stop loss + SPREAD on both orders. This is very important that itâs in addition to your spread!! Thatâs a total risk of 17.5 pips, on my broker which is FXCM. Next, place take profits levels of 40 pips on the first order and 70 pips on the second order. DO NOT MOVE YOUR STOP LOSS ON EITHER ORDER UNTIL YOUR FIRST ORDER HAS REACHED TAKE PROFIT. At this point you are to move your last order to a BreakEven or +1 stop loss. If it reverses, you made 40 pips on your first lot and 0/+1 on your second lot. If it continues moving in your direction to the second take profit level, which is quite common, then you have 40 pips on your first lot and 70 pips on your second lot for a total of 110 pips versus up to 30 pips risk (15 pips + 15 pips). Thatâs nearly 4:1 which makes this system highly profitable. Expect to win about 60% of your trades and lose about 40%. About 10% of the time you will not have a trade for that night. Good luck with this and happy pipping!
write down the link on a piece of paper then manually type it into a fresh browser and it will show up. Apparently, 741.com wonât allow you to click outside links on some of their pages. Let me know if this works for you.
Awesome! Thanks, will be taking a look at it tomorrow, getting late now. =)
Do you have reasons as to why this works?
How long have you been trading this system?
And how much experience have you had with forex? Surely, your post count isnât an accurate portrayal of your time spent trading. =)
I am sure your question was intended for the original poster but I happened across the thread and thought I would share. For a breakout of a previous high or low you would trade in the direction of the breakout. i.e. If price breaks the high, you go long and if it breaks the low, you go short. That pretty much applies to any trade of this type; this being a straddle of sorts.
For example if you look at last nightâs Asian session, for the 6pm - 8pm Eastern time zone hours the high was 81.960 with the low being at 81.858. Marvindoriotâs rules would indicate that you would wait until 2 pips above and below the high and low of those hours. So essentially you are looking for 81.980 and [U]81.838[/U]. If price had hit 81.98, according to this, you would buy. If price hit [U]81.838[/U] you would sell. As you can see from last nightâs session, this trade did not [U]trigger the buy[/U] (During the Asian session anyway). [U]The sell triggered for a loss[/U].
The price of 81.98 for a buy was hit but not until 3 am eastern, which takes you into the London session - and only traveled up to 82.104. Please keep in mind, depending on your broker, the price may vary a little obviously. I am just going off of my charts.
[U]This is why it is important to follow the rules that Marvindoriot has outlined - - - taking a trade in the London session doesnât qualify under these rules nor would it qualify as a breakout in the Asian session.[/U]
You could have easily pulled the 70 pips Marvindoriot stated to target had you done this the day before (4/21). At a glance just over the past few weeks: (all dates based on eastern time zone)
4/21 - full target level hit as stated above, on a sell trigger
4/20 - both buy & sell trigger but neither hit first target of 40 pips (buy trigger in Asian & sell trigger in NY session)
4/19 - buy triggers, continues for less than 10 pips. Nowhere near first target & didnât trigger until NY session
4/18 - sell triggers & reaches Full (2nd) target
4/15 - sell triggers & reaches First target
4/14 - sell triggers & reaches First target - barely misses 2nd
4/13 - buy triggers at 1 a.m. but doesnât hit target
4/12 - sell triggers & reaches Full (2nd) target
4/11 - sell triggers & continues approx 30+ pips but fails to reach first target
4/08 - buy triggers & fails to reach first target
4/07 - sell triggers & reaches first target, falls short of reaching 2nd target
4/06 - buy triggers & fails to reach first target
4/05 - buy triggers in NY session but does reach full target
P.S. [I]Paying attention to the session in which the trade triggered above, those that triggered after 10pm eastern as stated in the rules would not have been traded.[/I]
Straddle trades are some of the most simplistic trades you can take. They are not based on any analysis, just simply breaking the high and low of a bracket of time or session. However, many traders use them.
I would strongly caution you to be very careful with risk and money management as well as your stop loss when trading this way - BUT Marvindoriot has already provided you with good advice for both. If you follow the rules as he stated, this can bring you some pips while you learn and grow as a trader. Just be sure to stick to his advice of a very tight stop loss and low risk.
@Marvindoriot: I just want to commend you for sharing your ideas and experiences with the newbies on the forum! (Although per the forum, I too am a ânewbieââŚlolâŚto posting to the forum anyway! -been on here awhile âunregisteredâ). I always appreciate when someone advises others on solid money management and risk! Best wishes for much trading success!
If you break the high, you buy. A break of the low, you sell. And again, if you do not get your entry within two hours you stay out! The others posting in this thread are not followingthese rules and will thus not see results. I will post more images so you all understand it. I have been in the markets for years and I run a hedge fund for a living.
Here is what your results should actually be for the last 20 trading days (1 month) if you follow the above rules, with the last trading day being Thursday evening, April 21, 2011.
No Entry=2 days (0 pips)
Failed Trades=7 days (-210 pips)
Partial Profits=3 days (+120 pips)
Full Profits=8 days (+880 pips)
TOTAL = 790 pips
Full profits mean both targets reached for 40 + 70 = 110 pips
Partial means first target hit, stop loss moved to break even = 40 + 0 = 40 pips
Failed means first target not hit and stopped out -15 = -15 + -15 = -30 pips
If you did not get these results from your manual backtest, then you are NOT doing this strategy properly. I will try to get more images up this weekend so everyone understands the rules more clearly. And thank you clark for the hint reguarding the image posting because this forum wasnt allowing me to attach them to my post. Also, the reason this works is because the Asian markets are opening and new money is coming into the market. The reason I chose an Asian currency versus something like the GBP/USD is because its the Asian open. And again, if you arent getting a trigger in the first two hours then do not get in! Good Luck.
TradingMyWay, last night there was a trigger and it was a failed trade for -15 on each half position = -30 pips. Please make sure you are understanding and reading your charts properly. 81.84 was actually the low and then breached right after 8 pm and fell to 81.658. Perhaps you looking at the wrong time frame and thus results posted below are incorrect. Let me know if you have questions.
I am not sure where the miscommunication wasâŚhowever, I believe you were missing the point of my posts.
Since I am the only other one that has posted within this thread regarding the strategy (not with questions), I must conclude that the following statement you posted must be directed about me:
"The others posting in this thread are not following these rules and will thus not see results."
I was illustrating to anyone that may view the thread [I]just how important is[/I] to follow your rules if they intend to use your strategy - [I]and[/I] even complimented you on it and for being so thorough.
I guess you must have missed that part but no worries.
The only reason I mentioned when the trades did in fact trigger is so that they pay particular attention to staying within the recommended time frame you suggested. If they do not, it isnât quite an âAsianâ breakout now is it?
But now that you mention it, I must also state that ââŚand will thus not see resultsâ is not entirely true - even without staying within the timeframe - for say someone on a demo that may want to test it out and just sets entry orders and doesnât look back until the next day prior to the session would net a pip gain of roughly 300+ pips after accounting for losses (but [U]not[/U] including deduction of spread of course - just raw numbers based on outcomes above). And that would be with taking a trade each and every time the price level was hit regardless of when.
Not to mention the numerous straddle âbreakoutâ trades that are all over the internet and have been for years - many with consistent results.
Now, I would never recommend that anyone do that. You have your rules for a reason - but since you stated such, the thought of demonstrating arose.
I meant you no offense and I am sorry you saw fit to take it as such. I hope it is clearer to you now that I only supported the following of your rules and simply illustrated such.
Marvindoriot, I do very much appreciate that, but no, I am clear. I was also on the phone when posting last night so I did not mean to state that the trade did not âtriggerâ - I was only referencing that it did not profit. - Which admittedly, is my mistake!
The difference in price that I quoted was a simple âbumpâ of the mouse while notating it, that is all.
I very much understand my charts and read them properly, it was not of urgent importance at that moment and much of my attention was diverted. The entire (and singular) point of mentioning the trade last night was that it did not profit - (it was not of high relevance of any sort) - but the system if followed, can and will.
Hey trading, I understandâŚno offense taken I just want to make sure you all have the best tools and training necessary to succeed in this market. Have a prosperous day!
Thursday evenings in the US would be Fri a.m. in Asia. I donât trade the Fri. US session because it seems to me that there is a lot of going on then to rebalance portfolios for weekâs end. Does that happen during the Fri a.m. Asian session (US Thu. evening) or do you just take a trade if the setup happens Thu. evening?
I can check to see if Fridays have resulted in much of a difference in the success rateâŚonce I return to my office. I havenât noticed once as of late however.
Very much appreciated. I respect that you actually care and have concern for those you will be assisting. I was actually moved to speak up because of it. I chimed in to give a second voice, a confirmation if you will, and should have taken a little more care of attention to detail in that post instead of typing it up while distracted. Aside from the error (that I mentioned earlier to be somewhat irrelevant to the original point), I hope that I was able to convey the original point that there are pips to be had with you here!
Sometimes you see new threads that leave so many questions and leave much to guess work for the newer traders. You were extremely thorough with your money management, risk, etc. Keep it up!
When I looked at the thread it was not for the intent of following the method, I just like to review otherâs ideas. I am very price action S/R focused but I do know many individuals that used methods of this nature to gain pips while learning price action. I would encourage anyone to test it for themselves - it will be a great help for them in learning how this particular pair moves. May your success be great, as well as that of those you assist!
âŚA little late in the day to wish you profitable one but nonetheless enjoy your day & weekend!
I havent traded with usdjpy pair since then. Can you tell me please what is the 1 pip move in this pair. Is it 0.01 or 0.001 move. Some brokers put an extra hundredihs and it is kinda confusing.
I will be giving you the rules behind a very simple and extremely profitable trading strategy. This strategy has yielded 815 pips in the last 20 trading days and is very profitable due to the 4:1 risk reward ratio. I have other systems with high risk reward such as this, and do not recommend trading any strategy that is not AT LEAST 2:1! Having said that, I would not recommend using more than 3% capital on any one trade. For example, if you have a $10,000 account I would use 2.0 standard lots, or 20 mini lots in this strategy. AT the end of each trading week, re-evaluate your balance and do 3% of each trade for that entire next week based on Fridayâs balance. This results in COMPOUNDING. Without doing this, you would have made about 80% last month rather than 100%. Itâs up to you. These are the rules:
I just want to make sure you all have the best tools and training necessary to succeed in this market. Have a prosperous day!