This is my second post and hope this make sense to all that read it. I have looked over the forum and not sure if this system has been posted before or if anyone else has had the same idea. This system is play of the Asian close London open, I have been using it to some success in a demo account. I currently work full time and needed a system that I can put into place while I sleep but be able to wake up and have some success over night. Although this system is not a Holy Grail and like most systems could stand to use a few more adjustments but figured that it may help a few people just starting.
The system is simple; if you look to the chart you will notice that there are grey bars on the background with a black bar in between. The black bars show the �working hours� which are for me 12:00pm (central time) to 4:00am I have also placed a Blue arrow to show the opening and a Red one for the closing of the working hours. This is using a 1 hour chart; although I have used it on a 15 min chart I feel that the 1 hour is better suited to my needs. The currency�s I like to use are the EUR/USD and the USD/CHF but I am sure GBP would be a good one to trade with also. When I set up a trade I wake up at 11:30 (23:30) and look to see where the high low of the session looks to be forming. As 11:50 (23:30) rolls around I place a buy 4 pips above the high, and a sell order 4 pips below the low and then go back to bed. If you notice when I placed the positions I have in a sense entered my stops at the same time, if an order is bought then the stop is now the sell order and vice versa for the sell. When I wake up at 4:00am one hour before the USA open I close my positions. I do this because I don�t have access at work to trade, something about not paying me to trade at work thing.
So its 4:00 am close (for me) regardless of profit loss status. This goes with out saying that you can trail stops or switch time frames but I have had decent success closing at 4:00 am with a profit.
An example would be last nights (05/01/2007) trading session the 11:00 pm (23:00) candle had a high of 1.3593 and a low of 1.3572 shown with the white bars. So I placed a buy order for 1.3597 and a sell order for 1.3568. My buy order was filled first so my stop now becomes 1.3568, although this was not a winner stopped out with a loss of -29 pips, if you look back during the week I had winning trades that made up for this one minor loss.
Hope this helps a few people looking for systems or foundations of a system to use. I have learned a lot from the various posts and wanted to give back a little with this system.
Sorry i did not get this up soon lastnight, i entered the trade and spaced posting it before hand. I know its after the fact but i am going to place it up here anyways. The entered my order for the trade at 11:45 pm (23:45) the buy order was 1.9911 and the sell order was 1.9886. The pair i picked was USD/GBP, only beacuse it looked to be forming a baseline and was going to pop.
My order to BUY was filled at 1.9911 and at 3:00 am I closed the trade at 1.9925 for a 14 pip gain. I know the time is an hour earlier than what i posted above but i have to get to work a little earlier today. The other pairs CHF/USD, EUR/USD looked like they had success also.
Prettrad, I am not hedging at this time the Buy and Sell orders are for entry so the one that does not get filled becomes the stop. I place my orders to be filled go back to sleep then wake up at 4:00 and see what they have done.
I am not attempted to hedge, although it might be a good idea. The main thing i look for is what is the high low before the London open Asian close on the last candle. If you notice that right at about 1:00 am (mountain time) you have a spike up or down but its thats spike that tends to tell you where the price is headed. Of course when you have news and you are sleeping you are at mercy of the high lows.
Ok, looks like it never made the major correction i was thought would happen. I closed the trade at 3:00 am this morning with a -3 pip loss on the evening.
As with most systems I am sure this one can use a little fine tuning and I did notice that the pattern this week with CHF seems to be a major move up or down right at 11:30 ish. Now i am not sure if this pattern will follow suit on Sunday night but i am going to keep and eye out for it and maybe place the limit orders at 11:30 and wait for the spike up or down and maybe grab a few pips that way. I did notice one thing, I am only using on lot (10,000) and I am beginning to rethink the use of just one. I am feel that maybe if i switch over too 2 lots close one on the spike and let the other one run i might be able to break ever and or grab a few mor pips.
Its 2 days the system has been posted, I work full time and designed the system to be used at night when you are sleeping. 14 pips in 2 days is not to bad, granted you could have made more but i only trade from 11pm to 3am thats a grand total of 4 hours.
dude unless u can come up with constructive suggestion or even better a trading system tat works and makes more pips than his system, its best u keep mum.
I hope everyone had a great weekend, I wanted to let everyone know I am changing a few things with the system.
1 � I am now only going to be trading USD/GBP
2�I am changing the time frame from 1 hour to 2 hours
3�I am adding Slow Stochastic with a 14,3,3 setting.
The idea is still the same, you will place you limit buy and sell order at or around 11:45 pm (23:00) and close at 4:00 am (that�s when I go to work and have to close out my positions) When placing your orders look for the candle wick high and low and place the order 4 above or below. The reason I use 4 is simple, as the Asian market closes and the European market opens I notice a surge up or down and they very rarely go past 4 pips. Like with most things sometimes they go over but for a consistency 4 seems to hold firm. The Stochastic are used to gage momentum, like a speedometer I use it to tell me how fast or slow the conditions are.
I know this system is simple, but my main goal here is to find a system where I can sleep and make a little money. I am always open to hear of news ideas and new suggestions, I hope to learn from everyone and help anyone just starting out get there feet wet.
My daughter is sick so i did not get time to post the chart in time. But if you looked, GBP had a nice run down that you could have grab a few pips. I will post the chart any way but remember i did not tade it.
Sorry, I know the chart is after the fact but at least it gives you and idea of what would have gone on. I will get back on track and post the chart by 11:45 pm MST (23:45) before the trade so you can see the system working.
I was stopped out lastnight at 1.9893 for a -19 pip loss. I did look like GBP did not know where to go meaning up or down 2 Doji’s formed and after that it headed up. Small loss -
Sorry everyone my daughter is still sick and i am sleeping when i can. I will post as i get time tonight. Maybe its a good thing beacuse it looks as if GBP would have been stopped out.
Could you post back and explain how you attach those thumbnails to your postings. I am relatively new to computing and have no idea how you do it but it seems that everyone else can.
Kind regards, Tymen Wortel, Perth, Western Australia.
