Here's a system that I have come up with that seems to work pretty well on the Cable market ONLY.
It uses daily candles and you need to measure the daily direction and the daily movement.
If the close is greater than the open the direction is up, if the close is less than the open the direction is down. If the open and close are equal there is no direction and can be no trade regardless of the movement.
Next we measure the movement. If the direction is up the movement is the close-low, if the movement is down the movement is the high-close.
After a movement greater than any move in the last 10 days you enter the market immediately after the close in the direction of that day. Trades are always exited 2 trading days after they are opened.
I've back tested this since 1996 and got a winning pips to losing pips ratio of 1.87 to 1. In recent years it has performed slightly better however, here are the results since the start of 2006 -
Biggest number of consecutive losses since 2006: 3
Biggest number of consecutive wins since 2006: 7
Number of trades since 2006: 94
Number of wins since 2006: 56
Number of loses since 2006: 38
Number of pips won since 2006: 7937.9
Number of pips lost since 2006: 3154.2
Win to loss ratio pips: 2.52 to 1
Full details including the complete results since 1996 are available free for all here http://www.myforexdot.org.uk/MomentumTrading.html
It uses daily candles and you need to measure the daily direction and the daily movement.
If the close is greater than the open the direction is up, if the close is less than the open the direction is down. If the open and close are equal there is no direction and can be no trade regardless of the movement.
Next we measure the movement. If the direction is up the movement is the close-low, if the movement is down the movement is the high-close.
After a movement greater than any move in the last 10 days you enter the market immediately after the close in the direction of that day. Trades are always exited 2 trading days after they are opened.
I've back tested this since 1996 and got a winning pips to losing pips ratio of 1.87 to 1. In recent years it has performed slightly better however, here are the results since the start of 2006 -
Biggest number of consecutive losses since 2006: 3
Biggest number of consecutive wins since 2006: 7
Number of trades since 2006: 94
Number of wins since 2006: 56
Number of loses since 2006: 38
Number of pips won since 2006: 7937.9
Number of pips lost since 2006: 3154.2
Win to loss ratio pips: 2.52 to 1
Full details including the complete results since 1996 are available free for all here http://www.myforexdot.org.uk/MomentumTrading.html