Pairs: I prefer GBP crosses. Probably any volatile pair.
Logic behind the system: The highs and lows of Monday and Tuesday often form the low or the high of the week.
Steps (see attached calculator)
- Find the highest high and lowest low of Monday and Tuesday.
- Enter it into attached calculator.
- Entry is set to 15% of the highest high.
- SL is set to 10% on the other side of the low for long; high for short.
- TP is set to 50% of the range.
- If trade doesn't open by the end of the week, delete pending orders.
For example, this week on GBPUSD.
- Tuesday formed the high; Monday the low
- I set a buy order at 1.31011.
- SL was 1.29495
- TP was 1.31617
I set a sell and a buy order on each pair. Once one order is opened, delete the other.
Buy order was opened on Wednesday and closed on Friday.
I've manually backtested it on GBPJPY, GBPUSD, GBPAUD for years and it looks good.
Attached is the Day of week indicator I found here on FF. I'd set the indicator to only show MoTu.
- If the trend is overextended, it can enter and then get stopped out. In those cases, only consider a pullback. So, the system needs to be refined to take into account the weekly and monthly ATR. If the weekly or the monthly range is already above average, the trade may fail.
- If the MoTu range is too small, you may not want to set a order that week or you may increase the entry percentage.
I'll try to post my trades here, once they close. Any advice would be appreciated.