Pure Price Action System Test

Journal to track my latest system.

System:
1 hour chart only- Price Action only
Currencies traded- USD, EUR, GBP, JPY, CAD, AUD, NZD
One trade per day- choose trading pair based on Price Action
Wait for London Open
Wait for 1 hour candle to close in pre-chosen buy or sell direction - immediately open trade on the next candle
Set SL above or below current days swing or a percentage of average daily range (e.g 20 - 40%)
TP can be set in different ways-
-Ratio of 1:2 or 1:3 etc (risk to reward)
-percentage of average daily range (50 - 80%)
-support/resistance level
-left open until near end of New York session

Trade #1

Pair chosen for today is Sell GBPAUD

I am waiting till London Open.

Then I am waiting for a down 1 hour candle- when that occurs I will immediately enter short

Trade #1

In this trade now - short at 1.70515

SL 1.71050

Target will be left till a couple of hours before New York close.

Trade #1

Trade manually closed a few hours before New York close at 1.69621

A great start with +89.4 pips

Trade #2

Pair chosen for today is Buy AUDCAD

I am waiting till London Open.

Then I am waiting for an up 1 hour candle- when that occurs I will immediately enter long

Trade #2

In this trade now - long from 0.97756

SL 0.97570

Target will be left till a couple of hours before New York close.

Trade #2

Trade manually closed a few hours before New York close at 0.97830

A small gain with +7.4 pips

Market was quite choppy today, but still a win so pretty happy about that.

Could You teach us how to do it?

I am only testing an idea - only 2 trades in. So not really worth anything of note yet! It will more than likely start losing soon enough!!

My idea is simple -
I trade 7 currencies and all their crosses - total 21 pairs
I look quickly through each pair and then select one pair based on a predetermined parameter- it is a totally mechanical process.
I don't use any indicators at all, or any lines or anything, I just look at price action on each pair and ask myself 1 question.
The answer to the question of each pair quickly narrows down the list of 21 tradable pairs to just one pair and also a direction with which to trade.
Once a pair has been chosen I simply wait for London open and wait for a 1 hour candle to close in the direction I am trading and pull the trigger.
I limit my loss, but at this stage I am experimenting with leaving the TP open until the end of the day- so there is no limit to my gain if the market really decides to move favorably in my direction.

I'm sorry I can't tell you what the question or predetermined parameter is. If my system works, I don't want everyone copying me, and if it doesn't work again I wouldn't want people copying me either.

Hopefully I have answered your question at least in part. Thanks for your interest.

Trade #3

Pair chosen for today is Buy GBPNZD

I am waiting till London Open.

Then I am waiting for an up 1 hour candle- when that occurs I will immediately enter long

Trade #3

In this trade now - long from 1.85208

SL 1.84060 (pretty big SL but sticking to the rule of placing stop below current daily swing low)

Target will be left till a couple of hours before New York close.

Trade #3

Trade manually closed a few hours before New York close at 1.84927

A loss of -28.1 pips

Market was quite choppy again today.

Trade #4

Pair chosen for today is Sell NZDUSD

I am waiting till London Open.

Then I am waiting for a down 1 hour candle- when that occurs I will immediately enter short

Trade #4

In this trade now - short at 0.71562

SL 0.71730

Target will be left till a couple of hours before New York close.

Understand. No problem ..go ahead ..listening.

Trade #4

Trade manually closed a few hours before New York close at 0.71162

A pretty good trade with +40 pips

Trade #5

Pair chosen for today is Buy EURAUD

I am waiting till London Open.

Then I am waiting for an up 1 hour candle- when that occurs I will immediately enter long.

I will be away from my computer during London open today, so won't be able to update this journal.

Also there is some pretty big news out later so am interested to see how my chosen pair handles this news. (normally I wouldn't trade on a day with such news)

I know it is only a few trades in, but this system is showing some promise.
Since Monday
136.8 pips gain
28.1 pips loss

Total 108.7 pips gained

4 trades - 3 wins, 1 loss
Win rate 75%

Will trade for about a month, if successful, I will continue to trial with a live account.

Ok back into this journal again. Still testing for one more week, then will test on live account.


Trade #6

Pair chosen for today is Sell NZDUSD

Already in this trade.

Short at 0.69894 SL 0.70410

Will manually close trade before New York close

Trade #6

Trade manually closed before NY close at 0.69671

A gain of +22.3 pips

Trade #7

Pair chosen for today is Buy GBPJPY

I am waiting till London Open.

Usually for a long trade, I wait for a bullish 1 hour candle to close before entering a trade. However I have noticed with GBP pairs that price tends to move in my direction right from London Open. So I am going to enter long a couple of seconds before London Open. If this doesn't work, then I will enter a trade according to my normal rules.