I've been looking at various different strategies aimed at placing one trade a day and walking away based purely on price action.
The daily charts seemed a good place to start with, reducing whipsaw and absorbing spikes.
I make no claims to the originality of this idea as I've sourced it from various ideas and methods I've been looking at recently, so here goes:
Open a daily chart (I would stick to the majors), I prefer looking at candlesticks but bars would be fine.
Wait for the daily candle to close, calculate the range and work out 25%.
Place a short order 25% below the close and a long order 25% above the close: eg: daily range 200 with 25% @ 50, if close was 1.5000 long order 1.5050 short order 1.4950.
Stops and limits are discretionery, you could go for a simple 25 pip profit with 25 pip stop but the R:R is not great as obviously you need at least 50% strike rate just to break even any suggestions here are very welcome, bearing in mind I would like to keep the trade as maintainence free as possible.
Attached is an example chart for EURUSD daily on the 1 Nov 11, we can see on the white line the close @ 1.3696 daily range 263, 25% rounded to 66 therefore buy order @ 1.3762 and sell @ 1.3630.
With a 25 pip R:R this would have worked out nicely for us as can be seen on the H1 chart, we would have had a drawdown of 16 pips before comfortably taking our 25 pip profit.
Any thoughts or suggestions on this strategy are welcome.
I'm not that great at explaining things so hope this all makes sense.
The daily charts seemed a good place to start with, reducing whipsaw and absorbing spikes.
I make no claims to the originality of this idea as I've sourced it from various ideas and methods I've been looking at recently, so here goes:
Open a daily chart (I would stick to the majors), I prefer looking at candlesticks but bars would be fine.
Wait for the daily candle to close, calculate the range and work out 25%.
Place a short order 25% below the close and a long order 25% above the close: eg: daily range 200 with 25% @ 50, if close was 1.5000 long order 1.5050 short order 1.4950.
Stops and limits are discretionery, you could go for a simple 25 pip profit with 25 pip stop but the R:R is not great as obviously you need at least 50% strike rate just to break even any suggestions here are very welcome, bearing in mind I would like to keep the trade as maintainence free as possible.
Attached is an example chart for EURUSD daily on the 1 Nov 11, we can see on the white line the close @ 1.3696 daily range 263, 25% rounded to 66 therefore buy order @ 1.3762 and sell @ 1.3630.
With a 25 pip R:R this would have worked out nicely for us as can be seen on the H1 chart, we would have had a drawdown of 16 pips before comfortably taking our 25 pip profit.
Any thoughts or suggestions on this strategy are welcome.
I'm not that great at explaining things so hope this all makes sense.