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.