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The Weekly Opening Range Method

  • #1
  • First Post: Jan 12, 2007 7:09am Jan 12, 2007 7:09am
The W.O.R.M. Rules:
Trade the Pound only.
Wait for the first 18 hours to pass.
Place a buy order just above the range high and a sell just below the low.
TP 100
SL 50
If stopped out, replace the triggered order and wait.
If reactivated, trade exactly as before.
Quit for the week if stopped out a second time.
Quit for the week as soon as TP is hit.
Do not move the TP or SL.
Close any open orders after weekly close.

Monday 8/1/2007
Buy order hit at 1.9354
TP hit at 1.9454. Week over on Tuesday.
2007 Profits: 100 pips
  • #2
  • Jan 12, 2007 11:14am Jan 12, 2007 11:14am
Thanks for starting this. I'll be following your results closely and I'll try to trade along myself.
Don Life is expensive, but includes a free trip around the sun.
  • #3
  • Jan 15, 2007 5:15am Jan 15, 2007 5:15am
Buy order at 1.9672
Sell order at 1.9570
  • #4
  • Jan 15, 2007 6:03am Jan 15, 2007 6:03am
you said wait for18 hours
Could you tell: 18 hrs from what time is it? Is it in GMT 0.00 ?

Thank you very much for sharing.
  • #5
  • Jan 15, 2007 6:22am Jan 15, 2007 6:22am
Hi,i also trading using weekly range as my guidance of TREND..Looking forward to your journal..
  • #6
  • Jan 15, 2007 11:43am Jan 15, 2007 11:43am
Quoting Pip Rage
Buy order at 1.9672
Sell order at 1.9570

Thank you for your signal!

I originally read your posts at "Part Time Wealth Building Trading System - Weekly Scalping" thread and decided to follow your system. Last week I was stopped out twice because I used wrong range of data. I was not able to figure out which is the first 18 hours for this method and tried to use data range according to 18:00 GMT and that was wrong, I realized that later.

Today I put my pending orders (live) equally with your post and after I did it I found this thread and your post confirmed that I successfully figured out the right entry points this time.

Thank you for sharing your system, I curiously will follow it
  • #7
  • Jan 17, 2007 6:17am Jan 17, 2007 6:17am
Buy order activated at 1.9672 then shaken out for 50 pip loss 8 hours later.
Buy stop re-entered and re-activated at 1.9672 twenty hours after the shake-out.
No initial breakout again. We may be headed for the first double shake-out.
Or possibly not. Its time to sit on our hands again and let the market do its thing.



Ken
  • #8
  • Jan 18, 2007 5:16am Jan 18, 2007 5:16am
I thought I was in trouble this time. So much for my analysis. The 2nd long position hit its limit at 1.9772. 100 pips up on the trade. 50 pips up for the week.
2007 Profits:150 pips.
See you next week.


ken
  • #9
  • Jan 18, 2007 6:07pm Jan 18, 2007 6:07pm
Quoting nuum
you said wait for18 hours
Could you tell: 18 hrs from what time is it? Is it in GMT 0.00 ?

Thank you very much for sharing.
nuum,
I'm not sure what you mean. It's 18 hours from the open. I'm assuming the market opens at the same time everywhere, regardless of the time zone.
I trade with Oanda and use 3 hour candles. So I mark the opening range range as soon as the 6th candle closes (9.00pm Monday - Melbourne time which would currently be GMT + 11).
Hope this helps

Ken
  • #10
  • Jan 20, 2007 7:16am Jan 20, 2007 7:16am
Quoting Pip Rage
nuum,
I'm not sure what you mean. It's 18 hours from the open. I'm assuming the market opens at the same time everywhere, regardless of the time zone.
I trade with Oanda and use 3 hour candles. So I mark the opening range range as soon as the 6th candle closes (9.00pm Monday - Melbourne time which would currently be GMT + 11).
Hope this helps

Ken
Sorry, but I think, that FX market open at 12am GMT Monday (at midnight opens Australia and New Zealand, 1 hour past (1am GMT) opens Japan etc.) so if you say wait for first 18 hour as price channel, it means 12am GMT + 18hours = 6pm GMT on Monday. If your time is GMT+11 - it means that you must wait to thuesday - 6pm GMT = 6pm + 11 hours = your local time... 5am Thuesday...

The quote signal, which you posted before are from about 10am Monday GMT I think... - 3 hours after EUR zone opens (2 hours after UK opens). Why not... - this may be a good price channel too, but this isn't 18hours from FM market opens...

First of all, we must corretly defined rules - especialy price high and low - better denoted to GMT time - and than we may have better result together.

PaJaSoft

PS: I think, Oanda allows trade during whole weekend, but this is only through their dealing, not on ECN/ECB... (see liquidity:-))
  • #11
  • Jan 21, 2007 8:17am Jan 21, 2007 8:17am
PaJaSoft,

I agree with the addition that IB FX starts the weekly operation on Sunday at 23:00 GMT this year but they started on Sunday 22:00 GMT last year.

BTW, different brokers use slightly different opening and closing time as far as I experienced.

I think the point is that Pip Rage marks the opening range at 21:00 Monday Melbourne time that is 10:00 Monday GMT and the opening range starts when the broker in question starts the weekly trading.
  • #12
  • Jan 21, 2007 8:40am Jan 21, 2007 8:40am
The W.O.R.M. Rules:
Trade the Pound only.
Wait for the first 18 hours to pass.
==> wait 18 hours after start of week based upon broker time?
Place a buy order just above the range high and a sell just below the low.
==> range high and range low is for the week just pass?
If stopped out, replace the triggered order and wait.
==> re-enter the same order as before?
If reactivated, trade exactly as before.
==> what does this mean? don't we just leave the order as is with the TP and SL?
  • #13
  • Jan 21, 2007 9:22am Jan 21, 2007 9:22am
Quoting PaJaSoft
Sorry, but I think, that FX market open at 12am GMT Monday (at midnight opens Australia and New Zealand, 1 hour past (1am GMT) opens Japan etc.) so if you say wait for first 18 hour as price channel, it means 12am GMT + 18hours = 6pm GMT on Monday. If your time is GMT+11 - it means that you must wait to thuesday - 6pm GMT = 6pm + 11 hours = your local time... 5am Thuesday...

The quote signal, which you posted before are from about 10am Monday GMT I think... - 3 hours after EUR zone opens (2 hours after UK opens). Why not... - this may be a good price channel too, but this isn't 18hours from FM market opens...

First of all, we must corretly defined rules - especialy price high and low - better denoted to GMT time - and than we may have better result together.

PaJaSoft

PS: I think, Oanda allows trade during whole weekend, but this is only through their dealing, not on ECN/ECB... (see liquidity:-))
http://www.worldmarkethours.com/Fore...,1,1,undefined

From the above site, it shows the weekly forex market opens at Sunday, 21:00 GMT when New Zealand opens at Monday, 10:00 am their local time (GMT+13).
  • #14
  • Jan 21, 2007 9:30am Jan 21, 2007 9:30am
Quoting Pip Rage
nuum,
I'm not sure what you mean. It's 18 hours from the open. I'm assuming the market opens at the same time everywhere, regardless of the time zone.
I trade with Oanda and use 3 hour candles. So I mark the opening range range as soon as the 6th candle closes (9.00pm Monday - Melbourne time which would currently be GMT + 11).
Hope this helps

Ken
If the end of your first 18 hours is 9:00pm Monday Melbourne time, that means the start of the first 18 hours is 3:00am Monday Melbourne time (GMT+11), or 16:00pm Sunday, UK time (GMT).
  • #15
  • Jan 21, 2007 5:08pm Jan 21, 2007 5:08pm
Quoting Higgs
http://www.worldmarkethours.com/Fore...,1,1,undefined

From the above site, it shows the weekly forex market opens at Sunday, 21:00 GMT when New Zealand opens at Monday, 10:00 am their local time (GMT+13).

Why not... but 21:00 (9:00 pm) GMT Sunday + 18 hours aren't 10 (10am) GMT Monday...:-) but only 13 hours...

I backtest this method to May 2004 (has someone1hours TF data for older session? I've only 4 hours before 12 May 2004) and I think, that it has some potencial. I assumed too, that the good opening price range (channel) is from open FX market and 10:00 GMT (after fist third of EUR session)...

But second half of 2004 year was very bad for this... may be some optimalization (not S/L and T/P, but aditional rules for protected profit) help with this (without plundering current profit)... I will research futher...
  • #16
  • Jan 22, 2007 5:51am Jan 22, 2007 5:51am
Quoting PaJaSoft
Why not... but 21:00 (9:00 pm) GMT Sunday + 18 hours aren't 10 (10am) GMT Monday...:-) but only 13 hours...

I backtest this method to May 2004 (has someone1hours TF data for older session? I've only 4 hours before 12 May 2004) and I think, that it has some potencial. I assumed too, that the good opening price range (channel) is from open FX market and 10:00 GMT (after fist third of EUR session)...

But second half of 2004 year was very bad for this... may be some optimalization (not S/L and T/P, but aditional rules for protected profit) help with this (without plundering current profit)... I will research futher...
PaJaSoft,
Thanks very much for your efforts. I expect any purely mechanical method will have endure extended drawdown at some point and the W.O.R.M won't be any different. But I am keen to get more info on its poor performance in 2004. In particular how your backtesting was conducted and the precise level of drawdown. If anyone can back test further back than 2004, that would be a wonderful help and much appreciated also.

For today. The buy limit is 1.9760 and the sell is 1.9714.

Ken
  • #17
  • Jan 23, 2007 1:49pm Jan 23, 2007 1:49pm
Well I must admit I nailed my 100 pips TODAY! Thanks for your method and your journal.
Don Life is expensive, but includes a free trip around the sun.
  • #18
  • Jan 23, 2007 5:02pm Jan 23, 2007 5:02pm
Likewise...out for 100 also.
2007 Profits: 250.
See you next week.


Ken
  • #19
  • Jan 24, 2007 2:24pm Jan 24, 2007 2:24pm
Quoting Pip Rage
Likewise...out for 100 also.
2007 Profits: 250.
See you next week.


Ken
Good job both, but be wary and ready to lost all in next weeks... - in the history there were months with more that 300pips drawdown... (and year 2005 has overall profit only win of two races...)
  • #20
  • Jan 31, 2007 3:26am Jan 31, 2007 3:26am
As I expected... both positions of this week was in lost.

Good luck in next week.
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