Here are the rules.
During the New York session, after the first hour has ended, (at the beginning of the second hour), take the first hour's range and multiply by 0.3. Add this figure to the opening price of the 2nd hour for the buy entry. Multiply the first hour's range by 0.1 and subtract this figure from the 2nd hour for the stop.
Reverse all this for sells. (Sell entry = 2nd bar open - (1st bar's range x 0.3), Stop = 2nd bar open + (1st bar range x 0.1)
The risk in pips per trade is the 0.3 figure plus the 0.1 figure (difference between entry and stop).
A few tinkerings I'd like to play with are of which an EA would be of great help are:
- to choose which bar will be the Open range bar (currently on my Pepperstone Mt4 NY open is the 15.00 bar.
- to choose the % of account to risk (each trade has the same amount) .
- to have 3 Take Profit options as follows:
1. a set figure in pips (default of 10pips but can manually adjust),
2. exit the trade at a multiple of the risk in pips (default of 2 x risk)
3. exit at either the first or second profitable Open price after the trigger bar.
Interested in whether this idea has any legs.