I stuck closely to Melodica’s rules for entry however I adjusted the take profit/stop loss levels to something more suitable for my situation - A hard 25 pip stop loss and a 50 pip take profit level.
In my chart , the 2 black vertical lines is the time period we are working with as stated in the rules. The Buy and Sell entries are in accordance with his original rules as well. In this particular trade, once the Buy entry was hit, i set a stop loss of 25 pips and a tp of 50 pips.
Profitable Strategy…
If combined matingale stategy, might be more profitable. For ex. For example buy taxable SL position, the positions we sell double lot. :):)
I realise there is a pink dotted line on the 19 of Aug. Please ignore that line. My sell entry was actually 2 pips below the lowest price (around where the green arrow is) thus my sell entry was not activated.
Read all your recent posts and I have a suggestion :
I saw that a lot of trades get very close to T/P of Melodica system, so I think maybe instad of putting the T/P exacly as the High and Low difference, use only 2 third of it (2/3), maybe even with the S/L.
If we had an expert of this system we could check my theory.
the lines are drawn from the beginning of 11(GMT) hour to the end of the 7(GMT) hour and the trades are entered in the beginning of the 8(GMT hour is that right?
I guess this works well because most GBP news happens about a half hour after 3 GMT. and EUR news happens around 1 GMT.
This time would be equal to 4 PM central time zone to the end of 2 AM central time zone US we are -6 GMT.
Thinking about EUR I wonder what would happen if you went from 11 thru 4 and set orders at 2 GMT on the eurusd? since eur news happens generally around 6 gmt. Just a thought.
Thank you for the answer. One more question. Do we leave friday pending orders during weekend(just as yesterday, I still have buy pending order active).
For example the current position to buy 1 lot, then we are prepared to sell stop 2 lots. so that if the SL of buy orders and sell positions on the losses of the order
covered by the order of buy sell. it constantly sustainable until we get
profit.
for ex. Last High price = 1.2300, last low price = 1.2200
High - Low = 100
1 lot buy stop 1.2300 SL 1.2200 TP 1.2400
1 lot sell stop 1.2200 SL 1.2300 TP 1.2100
price run buy stop…
1 lot buy 1.2300 SL 1.2200 TP 1.2400
pending order
2 lot sell stop 1.2200 SL 1.2300 TP 1.2100
price down SL buy…
2 lot sell 1.2200 SL 1.2300 TP 1.2100
pending order
4 lot buy stop 1.2300 SL 1.2200 TP 1.2400
thanks for sharing this Trading System, it looks very promising. As PlasticJack suggests one should use tighter stop losses, to avoid huge drawdowns.
First backtests of the system (with a very crude money managment) are very promising.
I’ve written a small indicator which may be used to visualise the break out levels on the chart. It’s implemented quick&dirty but it shows the potential of the approach proposed by melodica.
