1 Trade a Day on the Daily Charts

I've been looking at various different strategies aimed at placing one trade a day and walking away based purely on price action.
The daily charts seemed a good place to start with, reducing whipsaw and absorbing spikes.
I make no claims to the originality of this idea as I've sourced it from various ideas and methods I've been looking at recently, so here goes:

Open a daily chart (I would stick to the majors), I prefer looking at candlesticks but bars would be fine.

Wait for the daily candle to close, calculate the range and work out 25%.

Place a short order 25% below the close and a long order 25% above the close: eg: daily range 200 with 25% @ 50, if close was 1.5000 long order 1.5050 short order 1.4950.

Stops and limits are discretionery, you could go for a simple 25 pip profit with 25 pip stop but the R:R is not great as obviously you need at least 50% strike rate just to break even any suggestions here are very welcome, bearing in mind I would like to keep the trade as maintainence free as possible.

Attached is an example chart for EURUSD daily on the 1 Nov 11, we can see on the white line the close @ 1.3696 daily range 263, 25% rounded to 66 therefore buy order @ 1.3762 and sell @ 1.3630.

With a 25 pip R:R this would have worked out nicely for us as can be seen on the H1 chart, we would have had a drawdown of 16 pips before comfortably taking our 25 pip profit.

Any thoughts or suggestions on this strategy are welcome.

I'm not that great at explaining things so hope this all makes sense.

hi forex1962
this is my first post at FF..

your system look interesting ..
can i ask you something.,how long you using this system.,and how the results ?

Hi Nefilim,
This is a new system I'm just starting to use, I usually trade on H4 with candle patterns and MACD but trying the daily as 'low maintaineance'.

Hi forex1962,
thanks for sharing
I was wondering if there is a definite logic behind this system, I mean why 25% of previous daily range? Is there any specific reason? did you back-test this with this setting?
thanks

Hi Exking
No back testing, just forward testing...25% seems to be the area price needs to reach to confirm the move, of course this doesn't always happen but seems the most reliable area.

I've seen your post, very good...

I also trade candlesticks on daily chart pending orders. order 1>.4% order 2>.6% and order 3>.6%

Targets, Stops & Exits

Once i place a pending order i dont need to change the ATR for the SL and TP until the trade triggers and enters the market, need only adjust the entry price of the limit order every new signal period.

When a trade takes profit on Order 1 or Order 2 the current ATR at the time is used for locking in profits.

1. The initial stop is 1/2 of the Average True Range (ATR) using the 14 period ATR of the daily time.

2. Once priced has moved 1/2 ATR the stop is moved to lock in 10 pips on all orders.

3. The 1st order takes profit at 1x ATR and the stop is moved to lock in 1/2 ATR on all remaining orders (orders 2 & 3).

2. The 2nd order takes profit at 2x ATR the stop is moved to lock in 1x ATR on the remaining order (order 3).

3. The 3rd order takes profit at 4x ATR.


Re-entries

All new bars have re-entry criteria unless there is an open position on a pair without profit yet locked in to at least +10 pips.

Hi,
do you have an EA for this nice strategy?