I will show you how can you make profit from forex with the simplest system:
Currency Pair: GBPUSD
Time Frame: Any (H1 is better)
[B]Trading Rules:[/B]
1- Open your chart on 08:00 AM (GMT).
2- Find the Maximum Price and Minimum Price between 21:00 PM (GMT) to 08:00 AM (GMT).
(For example If your broker time is GMT+2, so you should find the maximum and minimum price between 23:00 PM to 10:00 AM on your chart.)
3- You have 2 numbers. Maximum Price & Minimim Price. Now should open 2 pending orders:
Buy Stop:
At: (Maximum Price + 2 pips)
T/P: (Maximum Price + (Maximum Price - Minimum Price))
S/L: (Minimum Price - 2 pips)
Expiratory: Next trading day at 08:00 AM (GMT)
Sell Stop:
At (Minimum Price - 2 pips)
T/P (Minimum Price - (Maximum Price - Minimum Price))
S/L (Maximum Price + 2 pips)
Expiratory: Next trading day at 08:00 AM (GMT)
4- Now you can even turn off your computer and sleep. If any of above pending orders activated, let it touch T/P or S/L it self. It may takes some hours or even some days. Please never close it manually.
Inactive pending orders will expire next trading day at 08:00 AM (GMT). At this time you should go to the first stage and repeat this cycle for the next day.
Please correct me if i am wrong but is this not similar to trading daily breakout? Because you are essentially setting a trade before the start of the day with entry orders at previous day’s high and low.
I think this is an extremely good method when the market is trending like GBP/USd has been in past few days. The only problem with such methods is the big stop losses.
You are almost true
But there is a difference between Daily Breakout and this strategy.
I don’t us previous day’s high and low.
I use high and low between 21:00 PM to 8:00 AM (GMT)
This strategy is suitable for traders which have not sufficient time for looking at charts every minute. (like me )
Every one may set 2 pending orders at 8:00 AM (GMT) and close the chart.
I will complete these results for previous months for GBPUSD.
I have testes other pairs.
It is not good for EURUSD.
It works on EURGBP and GOLD. But in some different hours.
There results are not as well as GBPUSD but they are reasonable.
I will work on other currencies and will publish the results here.
Also I am working on Expert Advisor for this strategy.
I will update daily results on post #3 in this thread.
The last result is for 2010.08.11
For the day 2010.08.12 the position is open yet.
And for the day 2010.08.13 the range has not been broken.
Great simple system here, I advise you to not make your EA public as it will destroy this method for good, It will no longer work, as everyone will trade it.
Make the EA private, and sell it for a fee, this way you protect your method and make a little for your efforts.
Really? You actually think that the market “goes EA hunting”? EA stops working is because EA cannot adapt to the market. If EA works so well then how come big banks like Citibank, HSBC, and so on are hiring traders? Why don’t they just invest their wealth into EA’s and stop paying huge bonuses to their traders at the end of the year?
Hey!
Lets say that previous day long trade was opened at 7:00AM GMT. How long do we leave it open? Do we close it at 8:00AM GMT or not? Do we just add another pending order?
Regardless, back testing this strategy actually shows that it is a VERY strong strategy. And by strong I mean this baby works very well. I give it two thumbs up!
The only thing I personally don’t suggest is allowing for such a huge stop.
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