Midnight Retrace Journal

This method is looking for a retracement entry with a Martingale twist. I've traded it live and backtested with predictable success.

I only trade Eur/USD.

I'm looking for a 20 pip move to enter, expecting a 20 pip retrace. If price moves 10 points against me, I enter again at 2 units. If price moves 10 more pips, I enter again at 3 units. 4 and 5 units then stop out after 10 more points move. Any time price moves 20 pips in my favor I'll close all entries.

I started this using NY time midnight entry point. It seems to be profitable any time, but more on that later.

Lets start with the first midnight, I'll edit with better plan layout as needed.

*More Specifics...
I look at a 5M Chart. Setup starts at Midnight, New York Time Zone (EDT)
I set 1 unit Entry Points 15-20 pips away from the close of the 00:05 Candle. I set a Long and a Short Entry expecting a retrace if the Entry hits. I have an initial Stop at minus 30 pips to avoid getting clobbered by a huge move.

When I get an entry I take down the other one. I set a second entry order of 2 units 10 further than the current entry. I won't take 2 orders during the same 5M candle. When a reversal appears, I'll set a limit target 20 pips from the apparent Low (Hi).

I take up to 5 positions, incrementing the purchase each time. Maximum possible loss is 350 pips. Average Profit from a winner is about 50 pips. Win/Loss percentage must stay above 90% to be profitable.

15JUN09 EUR/USD
00:00 Open - 1.39552 Close - 1.39593
00:05 Open - 1.39593 Close - 1.39529

Basing entry on 1.39500 (because it is the closest round number to the 00:05 close of 1.39529)

Set Long entry 1.39300 Stop 1.39000
Set Short Entry 1.39700 Stop 1.40000

00:39 EDT : Long 10 Microlots EUR/USD 1.39300
00:47 EDT : Long 20 Microlots EUR/USD 1.39200
00:59 EDT : Long 30 Microlots EUR/USD 1.39100
01:20 EDT : Long 40 Microlots EUR/USD 1.39000
01:23 EDT : Long 50 Microlots EUR/USD 1.38900

1:25 Low 1.38029... TP = 1.39029

Close all positions at 1.39029 01:47
Net loss -6.5 pips... -$6.50

O well... Karma I guess. Next trade tomorrow morning. GL all!!!

16JUN09 EUR/USD
6am EDT Trade
06:00 Open - 1.38725 Close - 1.38756
06:05 Open - 1.38756 Close - 1.38832

Basing entry on 1.38800 (because it is the closest round number to the 06:05 close of 1.38832)

Set Long entry 1.38600 Stop 1.38300
Set Short Entry 1.39000 Stop 1.39300

07:01 EDT : Long 10 Microlots EUR/USD 1.38600
07:05 EDT : Long 50 Microlots EUR/USD 1.38400
Stop/Loss moved to 1.38100 for all lots.


7:05 Low 1.38383... TP = 1.38583

7:12 Close all positions at 1.38583

Net Profit 89.8 pips... $89.80
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8am EDT Trade
08:00 Open - 1.38541 Close - 1.38457
08:05 Open - 1.38457 Close - 1.38390

Basing entry on 1.38400 (because it is the closest round number to the 08:05 close of 1.38390)

Set Long entry 1.38200 Stop 1.37900
Set Short Entry 1.38600 Stop 1.38900

08:24 EDT : Short 10 Microlots EUR/USD 1.38600
Stop/Loss moved to 1.39100.

TP set to 1.38573 based on 8:29 Hi of 1.38773

8:31 Close positions at 1.38573

Net Profit 2.7 pips... $2.70
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10am EDT Trade
10:00 Open - 1.38395 Close - 1.38524
10:05 Open - 1.38524 Close - 1.38526

Basing entry on 1.38500 (because it is the closest round number to the 10:05 close of 1.38526)

Set Long entry 1.38300 Stop 1.38000
Set Short Entry 1.38700 Stop 1.39000

10:31 EDT : Long 10 Microlots EUR/USD 1.38300 (Removed Short Entry)
10:39 EDT : Long 20 Microlots EUR/USD 1.38200
Stop/Loss on all set to 1.37800
TP set to 1.38345 (10:39 Low = 1.38145)

10:46 Close all positions at 1.38345 (TP)

Net Profit 33.5 pips... $33.50
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Noon EDT Trade
12:00 Open - 1.37825 Close - 1.37916
12:05 Open - 1.37916 Close - 1.37825

Basing entry on 1.37800 (because it is the closest round number to the 12:05 close of 1.37825)

Set Long entry 1.37600 Stop 1.37300
Set Short Entry 1.38000 Stop 1.38300

12:29 EDT : Long 10 Microlots EUR/USD 1.37600 (Removed Short Entry)

TP set to 1.37770 (12:29 Low = 1.37570)

12:36 Position Closed at 1.37770 (TP)

Net Profit 17.0 pips... $17.00
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20:00 EDT Trade
20:00 Open - 1.37738 Close - 1.37694
20:05 Open - 1.37694 Close - 1.37736

Basing entry on 1.37700 (because it is the closest round number to the 20:05 close of 1.37736)

Set Long entry 1.37500 Stop 1.37200
Set Short Entry 1.37900 Stop 1.38200

20:29 EDT : Long 10 Microlots EUR/USD 1.37500 (Removed Short Entry)

TP set to 1.37678 (12:29 Low = 1.37478)

20:49 Position Closed at 1.37678 (TP)

Net Profit 17.8 pips... $17.80

16JUN09 EUR/USD (Really the 16th )
00:00am EDT Trade
Midnight Retrace
00:00 Open - 1.37993 Close - 1.38095
00:05 Open - 1.38095 Close - 1.38113

Basing entry on 1.38100 (because it is the closest round number to the 00:05 close of 1.38113)

Set Long entry 1.37900 Stop 1.37600
Set Short Entry 1.38300 Stop 1.38000

01:21 EDT : Long 10 Microlots EUR/USD 1.38300
01:22 EDT : Skip Entry at 1.3840 because a new candle hasn't formed!
01:29 EDT : Long 20 Microlots EUR/USD 1.38500
01:29 EDT : Long 30 Microlots EUR/USD 1.38500

Stop/Loss moved to 1.38800 for all lots.

1:29 Hi 1.38504... TP = 1.38304

1:31 Close all positions at 1.38304 (Limit Hit)

Net Profit 97.6 pips... $97.60

Best profit possible on this trade. 1st bar was tall so it skipped an entry, which gave a better entry price later. Price barely touched last entry, so more profit available. Entry was on a high, which enters on the exact number, without the spread. Chart attached.

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2am trade +30.2 - Not in Trade (sleeping)
4am trade -220 Loser - Not in Trade (sleeping)(4am trade has the WORST record)
6am trade +15.2 - Not in Trade (sleeping)
8am trade -3.0 Loser - Not in Trade (Breakfast Out / Not at Desk)

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10:00 am EDT Trade
10:00 Open - 1.38646 Close - 1.38723
10:05 Open - 1.38723 Close - 1.38588

Basing entry on 1.38600 (because it is the closest round number to the 10:05 close of 1.38588)

Set Long entry 1.38400 Stop 1.38100
Set Short Entry 1.38800 Stop 1.39100

10:33 EDT : Short 10 Microlots EUR/USD 1.38800
10:39 EDT : Short 20 Microlots EUR/USD 1.38900
10:42 EDT : Short 30 Microlots EUR/USD 1.39000

Stop/Loss moved to 1.39300 For All Lots.

TP set to 1.38810 based on 10:42 Hi of 1.39010
TP moved to 1.38835 based on 10:45 Hi of 1.39035
10:55 - Manually close all positions when price goes below TP of 1.38835
Closed at 1.38885

Net Profit 29.0 pips... $29.00

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NOON EDT Trade
12:00 Open - 1.38778 Close - 1.38827
12:05 Open - 1.38827 Close - 1.38839

Basing entry on 1.38800 (because it is the closest round number to the 12:05 close of 1.38839)

Set Long entry 1.38600 Stop 1.38300
Set Short Entry 1.39000 Stop 1.39300

12:12 EDT : Short 10 Microlots EUR/USD 1.39000

TP set to 1.38822 based on 12:12 Hi of 1.39022

12:23 Closed at 1.38822 (Limit Hit)

Net Profit 17.8 pips... $17.80

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20:00 pm EDT Trade
awaiting trade...........

Last Night
20:00 pm EDT Trade
20:00 Open - 1.38153 Close - 1.38214
20:05 Open - 1.38214 Close - 1.38286

Baseline at 1.38300 (because it is the closest round number to the 20:05 close of 1.38286)

Set Long entry 1.38100 Stop 1.37800
Set Short Entry 1.38500 Stop 1.38800

20:38 EDT : Short 20 Microlots EUR/USD 1.38500
High for the 4H candle was 1.38504 and FXCM filled me anyways!

20:40 EDT : TP set to 1.38304 based on 20:38 Hi of 1.38504

20:44 - Manually closed position at 1.38396. I increased risk by 100% for this trade and wasn't comfortable with that amount. Family distractions and nerves got to me and I took the 10.4 pip gain.

This trade would have hit my Target 17 minutes later and doubled my profit.

Closed at 1.38396

Net Profit 10.4 pips... $20.80

*Went to bed Early... no more trades until NY Open

10:00 am EDT Trade
10:00 Open - 1.38696 Close - 1.38643
10:05 Open - 1.38643 Close - 1.38696

Baseline at 1.38700 (because it is the closest round number to the 10:05 close of 1.38696)

Set Long entry 1.38500 Stop 1.38200
Set Short Entry 1.38900 Stop 1.39200

10:34 EDT : Long 15 Microlots EUR/USD 1.38500
Remove Short Entry

10:36 EDT : TP Limit set to 1.38657 based on 10:35 Low of 1.33457
10:50 EDT : TP moved to 1.38640 based on 10:45 Low of 1.38440

10:59 EDT : Limit Hit, Closed at 1.38640

Net Profit 14.0 pips... $21.00

Much more comfortable with 50% risk increase!

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