It is a work in progress.
Chart setup:
1. Open a EUR/USD 5minute bar chart.
2. Place a vertical line at 6am GMT and a vertical line at 19:00 GMT. My broker is GMT+1 so I place the lines on my chart where the chart reads 7:00 and 20:00.
3. Wait for an inside bar to form.
3a. Trades are only taken between the times listed above in step 2.
Long entry:
4. IF the inside bar is bullish, place a pending buy order .5pips above the high.
5. Set Take profit to 3pips and Stop Loss to the low of the inside bar.
6. Risk no more than 1% of account balance on the trade.
7. The trade must trigger within 2 bars following the inside bar, otherwise the pending order is cancelled.
Short entry:
8. reverse above - IF the inside bar is bearish, place a pending sell order .5 pips below the low.
9. Set Take profit to 3pips and Stop Loss to the high of the inside bar.
EA Ideas.
It would be great to have an EA to trade this setup as the screentime is quite long. Custom inputs:
- set the start and end times
- money management functionality on/off. If off, then manual lotsize to be inputted
- max equity gain/loss %cutoff (to turn the EA off when a set total equity gain or loss for the day has been reached).
- have the stop loss equal to the range of the inside bar OR 9pips, whichever is smaller. this is to counter gaps/spikes during news and limit any resulting losses to 3%.
UPDATES:
just confirmed that Go Markets is actually GMT +2, so I'm looking at taking trades between 5am GMT and 18:00 GMT, which corresponds to 07:00-20:00 on my charts.
link to v1.2 EA by Ananthhh: http://www.forexfactory.com/showthre...38#post5702438 (27th May 2012)
30th May 2012 link to v1.3 EA can be found here: http://www.forexfactory.com/showthre...13#post5712813
If the inside bar has the same open and close, then a pending order is placed in the direction of the previous bar's close.
PLEASE NOTE ONE SHOULD NOT TRADE THE EA IN DEVELOPMENT ON A LIVE ACCOUNT. IT IS A WORK IN PROGRESS WITH VARIOUS BUGS DUE TO BE IRONED OUT. TRADING USING THE EA ON A LIVE ACCOUNT IS AT ONE'S OWN RISK.