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Daily Scalping the Asian High and Asian Low 2 - You want simplicity?

  • Post# 1
  • Quote
  • First Post: Apr 8, 2008 8:57pm | Edited Aug 13, 2009 4:25am
This is one method that disregards Fibonacci, trend lines, chart patterns and all oscillators. Although you can change the Asian High Asian Low (I called it AHAL) system as you like by adding your own rules, the profitability of this system is not in doubt.

Let's not waste time and get into what are the new setups:

DETERMINING THE ASIAN SESSION HIGH AND LOW OF THE DAY

Using 2100 GMT as the start of a new daily candle, at 0600 GMT, you will be able to identify the High / Low of the Day for the Asian session by 0600 GMT.

ENTRIES AND EXITS

I have added a moving average to spot high probability setups, thus avoiding entering any positions against the trend. The moving average we will be using is 55-EMA on the hourly chart. All you need is to identify the trend using the EMA on the hourly chart, then switch to 5-minute time frame to enter either buy at the Asian High or sell order at Asian Low (this system will usually yield at least 10 pips for you):

Buy Order
  1. 55-EMA on the hourly chart is on uptrend mode
  2. Set the buy order at the Asian High Ask Price
  3. Set the stop-loss of 30 pips away from the Asian High
  4. Set the first targeted profit at 15 pips
  5. Set the second targeted profit at the next mid-pivot price level or the next pivot point
  6. Move stop-loss to break even after the first target profit is hit
  7. Exit the second lot at the close of the 5-min bar if it closed lower than the nearest pivot point
Sell Order
  1. 55-EMA on the hourly chart is on downtrend mode
  2. Set it at the Bid Price at the Asian Low
  3. Set your stop-loss of 30 pips away from the Low
  4. Set the first target profit at 15 pips and the second target profit at the next mid-pivot price level or the next pivot point
  5. Move stop-loss to break even after the first target profit is hit
  6. Exit the second lot at the close of the 5-min bar if it closed higher than the nearest pivot point
Pairs to Trade
  1. GBPUSD
  2. works on other pairs but do try it out with different SL and TP.
Quoting FXOperator
So you want simplicity? This is one method that disregards Fibonacci, trend lines, chart patterns and all oscillators. Although you can change the Asian High Asian Low (I called it AHAL) system as you like by adding your own rules, the profitability of this system is not in doubt.

Let's not waste time and get into what are the new setups:

DETERMINING THE ASIAN SESSION HIGH AND LOW OF THE DAY

Using 2100 GMT as the start of a new daily candle, at 0600 GMT, you will be able to identify the High / Low of the Day for the Asian session by 0600 GMT.

ENTRIES AND EXITS

I have added a moving average to spot high probability setups, thus avoiding entering any positions against the trend. The moving average we will be using is 55-EMA on the hourly chart. All you need is to identify the trend using the EMA on the hourly chart, then switch to 5-minute time frame to enter either buy at the Asian High or sell order at Asian Low (this system will usually yield at least 10 pips for you):

Buy Order
  1. 55-EMA on the hourly chart is on uptrend mode
  2. Set the buy order at the Asian High Ask Price
  3. Set the stop-loss of 30 pips away from the Asian High
  4. Set the first targeted profit at 15 pips
  5. Set the second targeted profit at the next mid-pivot price level or the next pivot point
  6. Move stop-loss to break even after the first target profit is hit
  7. Exit the second lot at the close of the 5-min bar if it closed lower than the nearest pivot point
Sell Order
  1. 55-EMA on the hourly chart is on downtrend mode
  2. Set it at the Bid Price at the Asian Low
  3. Set your stop-loss of 30 pips away from the Low
  4. Set the first target profit at 15 pips and the second target profit at the next mid-pivot price level or the next pivot point
  5. Move stop-loss to break even after the first target profit is hit
  6. Exit the second lot at the close of the 5-min bar if it closed higher than the nearest pivot point
Pairs to Trade
  1. GBPUSD
  2. works on other pairs but do try it out with different SL and TP.


Trade examples on GBPUSD

Thank you very much for this simple system. Is it profitable to say trade with one lot for 10 pips TP only?
Hi aelimian,

Yes you can. This method main advantage is that it has a very high percentage of winning trades, thus offset any losing trades and came on top if you can deploy it consistently. Best is if one could make an EA out of it.
Thanks.
Looks like a good method.
How long have you been trading it?
Hi billbss,

Been using this method since last year and profitable throughout 2007, although due to time constraint I have cut down on number of trades using this method this year.
If you look at Igroks thread or read his book he has templates based on it too, its a proven method and if u combine it with a daily range strategy, it becomes very affective, however i do feel ea would take alot of false breakouts as i feel the asian h/l sometimes the break of it is subjective unless theres a true support or resistance on the top or the bottom which makes it for a higher prob. setup. Plus the frankfurt open pushes price up and then back down again which does give good breakout opportunities.
Does the 2100 - 0600 GMT hold true during the Winter months?

Right now (DaylightSavingsTime) Europe opens at 0600 GMT. During the Winter it opens at 0700 GMT.

What I'm asking is do you use the same times, 2100 - 0600, the year around?

Thanks


Here's another question, if you don't mind.

You wrote:
Quote
Exit the second lot at the close of the 5-min bar if it closed lower than the nearest pivot point
Which 5M bar?
Is it the same 5M bar that broke the high?
The same 5M bar that gave you 15 pips profit?

Thanks
Hi billbss,

I did not alter the time throughout.

For the 5M bar, I'm referring to the bar that is nearest to the next pivot point. Not the first bar that penetrates through the high/low.
06 GMT == 4 PM in SG ??

Check Forum Page 1,Post 1 <or> www[dot]facebook[dot]com/sonicrsystem
Sonic,

SG is GMT+8...so:

0600GMT is 1400 (1 PM) SG time

2100GMT is 0500 (5 AM) SG time

Poopy
How many breakouts do you take a day?

Will you trade both a high and low breakout on the same day?

How long do you wait for a breakout?

Thanks again.
Quoting Poopy
Sonic,

SG is GMT+8...so:

0600GMT is 1400 (1 PM) SG time

2100GMT is 0500 (5 AM) SG time

Poopy
Correction
0600GMT is 1400 (2 PM) SG time
Quoting billbss
How many breakouts do you take a day?

Will you trade both a high and low breakout on the same day?

How long do you wait for a breakout?

Thanks again.
Hi billbss, I only trade with the trend. If the trend changed, and the first trade is a loss, then yes, I would set the order at the other end.

All the orders are EOD.
  • Post# 14
  • Quote
  • Apr 9, 2008 10:54pm | Edited at 10:55pm – typo
FX Operator-

HAHA!! Thanks...I know - I'm such an idiot!
Hi,

On Mondays, my broker opening time is 7am (Malaysia/Singapore time @ GMT + 8). I lost 2 hours data...from 5am-7am. Can I trade using this strategy on Mondays?
Quoting dinbrabus
Hi,

On Mondays, my broker opening time is 7am (Malaysia/Singapore time @ GMT + 8). I lost 2 hours data...from 5am-7am. Can I trade using this strategy on Mondays?
Hi dinbrabus,

Two hours could probably decide either the high or the low as we do know that the volatility is low during the Asian session. I would suggest you open a demo account using MT platform and then execute your trades with your existing broker so you won't miss the two hours of data.
Let say you have data for GU high and GU low during Asian session.
1) Do you place an order if against the trend (55 EMA)? For example, on 9/4/2008. The trend (55EMA) on TFH1 is downtrend but the price break GU high.

If the first trade is a loss (SL30):
2) Do you place the second trade as the first trade if the price move back with the same direction? Example, UJ on 9/4/2008...it might happened to GU
Using 2100 GMT as the start of a new daily candle, at 0600 GMT, you will be able to identify the High / Low of the Day for the Asian session by 0600 GMT... Hi. I need a little clarification here as regards the time range. When you say "you will be able to determine the High/Low of the day for the Asian Session by 0600GMT", i assume you mean the opening candle of 2100GMT and the closing candle of 0600GMT? I am concerned if one was to go by that today, the breakout would be only 8pips!
Quoting Andigho
Using 2100 GMT as the start of a new daily candle, at 0600 GMT, you will be able to identify the High / Low of the Day for the Asian session by 0600 GMT... Hi. I need a little clarification here as regards the time range. When you say "you will be able to determine the High/Low of the day for the Asian Session by 0600GMT", i assume you mean the opening candle of 2100GMT and the closing candle of 0600GMT? I am concerned if one was to go by that today, the breakout would be only 8pips!
Keep in mind that on a 1H chart, the 0600 candle closes at 0700.

I think he means that AT 0600 GMT, you place your stop order.
thank for sharing..
nice job..

p/s - can u share ur nice ema55 indi


tq
dandyman_7

(sory my broken english)
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