UPDATES
- I have created and attached templates for both GJ and Eg to make it easy to set everything up ============================================================================================================================================================================================
START
Okay Here is the Idea... There are two Pairs here (GJ and EURGBP) and the idea here is that those pair at any time of the day have a correlation of more than -90%(negative 90) meaning that they almost move completely opposite of each other.
So here is how to i took advantage of that... What I di was to just concentrate on the two pairs only and always taking opposite trades at the same time once I got some criteria met which I will discuss below.
So On this image is just the 2 pairs side by side.
On the left its GJ and EG on the right
��Yellow MA_> 100LWMA(linear weighted Moving Average)
��Green horizontal lines are psychological levels(automatically drawn by an indicator which I will attach with its settings)
The supply and demand zones are not necessary I just added them to help with confidence. (you don't need them I repeat)
Grid builder is the indicator(attached at the end) I used to actually draw the horizontal Psycho levels which are very important in this approach. So the whole idea behind this strategy it to average and have an equal chance of entering and exiting the market without being influenced by anything else other than what you see.
Because the pip value variance of GJ and EG differ hence Set the grid Size(on the grid builder indicator) Of :
GJ-> 200(can be change, I will advice if any change is necessary)
EURGBP->100
**Remember to add the indicator on both chartsSo the strategy:
Basically I trade this few minutes before the London Open to late and one bundle(two opposite trades) is enough for the day:
M15 TF
So this is how I trade using this system, The first thing i want to achieve is the trend because no one wants to be against it but what if I'm against it, the answer is who cares just wait till you for the trend before you even think pf executing your trades. So this actually find the trend without even Hurting your eyes or drawing anything on your chart I use a linear weighted moving average of 100�� and if we can check the image i attached The yellow Moving Average is above the line chart on the GJ Side and below the line chart on the EG side meaning that I have my first condition met getting these two to actually be opposite of one another and truthfully speaking at anytime they will stay like that.
After achieving the trend the next thin is to trade wisely using the Psycho levels. Here the thing I'm looking for is [ for example GJ MA is above(bearish possibility ) and EG MA is below(bullish possibility ) so what I'm looking for in this case is for one both Pairs to penetrate the Psycho levels towards the direction of the current trend i will post examples to make this easy to understand because that's all you need,
-MAs are showing relative trends
-Just before London Opened price on both charts penetrated towards the confirmed trend and hence opposite trades are taken \
Risk management...
personally no SL if you can manage to check the trades after every 10-15 min you can only set Emergency stops if you wont be able to check your positions but hat makes the whole thing complicated, So this is how you get out in any situation if Price on both charts closes on the previous zone or range illustrated by a red circle and white arrow below:
Remember: Only close Both trades only if on both charts the Line chart closed above the opposite directional Psychological Level as illustrated above
Not even once you will close One Trade and leave another running this strategy wants you to treat the trades as a single bundle.
TPs are very crucial here.. TP exits should be like this: Once one chart hit the other edge of the psycho level or TP Hit close all trades. In other words both trades will have TPs at the next closest Psycho Level and if one hits TP you need to close all trades running and pending orders if you have them.
{I will develop an EA that will automatically kill all trades related to the system once one trade within the bundle hits TP)
Result of first example:
Here is the result of the first example .. so GJ was a pip away from TP but EG had some room left before it hit However close everything if one hits TP. You also close EG too even if it has not hit TP. I will explain the concept later as to why you do that.
Another Example:
Another trade example that i took>> entry was a bit late hence I entered with Limits so to reduce my cost of selling or buying>> TP is on the next Psycho level
and its result:
And here was the exit upon EG hitting Tp hence closing everything.... Remember If one Pair hits TP whilst the other is still running close everything
Another Example:
Another example . all conditions were met
So here are my Past week results from the trades I took
Lastly: I will explain later as to why I use a Line chart over any other chart e.g Candlesticks and I will also share any improvements or changes or updates if there's are any.
GOODLUCK :}
A reminder, Its always best to actually keep your trading around The London session or few minutes before it. And to help with this I will post a sessions indicator to easily identify the London session.
a report on how the last 2 years have gone would be very interesting