London open to Sydney open

Hello, i just want to share my strategy to everyone here..
i just recently use my strategy, so its not perfect yet.
this strategy is very simple,
trade on eurusd, audusd,gbpusd,eurgbp, or any pair you want,what we need to do is:

1.Look at the opening sydney market price, look the price at the first candle open, give it a mark.
2.Wait the london market open, when london open, place a trade and set the take profit at the opening sydney market price.
place a stop loss for 100 pips..
3.Wait until your tp is hit

NOTICE:
dont take the trade if the different between price between london open and sydney open is too small ( less than 15) because the risk and reward ratio is not worth..
if prices go up from the morning and when the london open it is on the yesterday high candle, and havent touch the yesterday low.the probability to touch sydney open is more bigger,
and the opposite as well..

just try to see it, the hitrate of the strategy is very high, the only problem is the drawdown..
i hope we can improve the strategy and decrease the drawdown and increase the profit..
Your opinion will highly apreciated

Hi zentrader8,
Looks pretty simple - I can write the EA to test it
Meanwhile - did you have a chance to backtest your strategy? According to my experience its pretty easy to find the pattern which work in the short-term. But to figure out something which could work for several years (at least 3-5) and under different market conditions - it's a challenge.

yes, GlobusFX its nice if you can create the EA, i already manual backtest it for 3 months until november,and the hitrate is very high, you can try to backtest it.. what software do you use to backtest the strategy? because i only use manual backtest and backward my metatrader history..
one of the weakness of the strategy is the drawdown and the risk and reward ratio, if we can improve it under different market condition this could be a simple and profitable strategy

everyone, there is a sydney open which is not filled by the london open on 12.02.2016 at EURAUD pair,
so i just buy it now and set TP at 1.5845 and place the stop loss under the today daily chart at 1.5280..
good risk and reward ratio

london open
eurusd pair
sell at 1.10563 tp 1.1018


euraud pair
sell at 1.5274 tp 1.5221


lets see

update: eurusd tp already

update, euraud tp already..

Nice system. What time is Sydney open in EST or GMT? I know London open is 3amEST.

Figured it out...Sydney Opens at 5pmEST.? How about Sunday Open? Thanks

@celestin2003 yes sydney open at 5 pm EST.. actually i dont often trade on monday , because usually it has gap and i dont trade it, so its better to trade on tuesday.

because for reward and risk ratio not so good if i use 100 pips, i have a new method:
1. count the pips from london open to sydney open set it as take profit point.
2. double the pips from london open to sydney open and set it as stop loss.
then we will have 1:2 reward and risk ratio.
Notice: dont trade if the pips is to small( below 15)..
give it a try

look at today gbpusd and audusd charts, if you followed my instructions you will have take profit already..

Look at today audusd charts, its already moved to the yesterday high..prepare..its a good conditions to reach the sydney open when the london open starts

Very interesting friend your system, do you have a EA to test it?

Cheers

right now i dont have the EA..maybe you can create the EA and test it?

trade taken..lets see..
at 0.7235
SL: 0.7285
TP :0.7185

Good, this trade close in profit?

If I understand you correctly, you would need a 70% hit rate in order to make 10% profit. You would need to have a better hit rate than almost all of,if not all Wall Street traders.

68% hit rate in order to make 4%. Assuming you beat the pros and your hit rate is 65%, you'd still be down 5%.

Please correct me if I'm wrong.

Here ya go, thsi might help.

I manually tested in on February and the this looks like it will make money. I've slightly adjusted your rules and added an indicator:

TF: M30

Indicators:
200 Simple MA (close)
Sessions(auto) 1.7 (http://www.forexfactory.com/showthread.php?p=3984838 - post30)

1) Zoom out of chart and identifay trend, we only take trades in the trends diretion. If price is bouncing off the MA, lay off!
2) Identify Sydney's openning shortly before before London opens (that is your TP) and prepare for an entry ONLY IF the trade will be with the trend.
3) 1 minute before London's opening caculate (it will not be an accurate number, but close enough) the distance between London's opening candle and Sydneys open. That is your SL in the other direction, risk max 2% of portfolio.
4) After each winnig trade, take a long breath and thank this community!
5) Post results in here and contribute to the forum!

Please note that the last two steps are the most important!

In the below screenshot, you'llsee three trades (all marked with yellow arrows):

Yellow: Sydney Hours
Green: London Hours

Trade 1) Marked red is a trade which would've failed BUT according to the MA rule, we wouldn't have touched.
Trade 2) Marked green, as you an see London opened above Sydney's open, so we shorted
Trade 3) Marked Blue is a trade I would not have touched because price was bouncing off of the MA during the NY and Sydney/Tokyo session



I hope this will help

nope, its ended in loss...actually its already moved to 0.7200 20 pips from london open..but i didnt close it, because im hoping it to touch the sydney open..
but its a life, there will be another good trade