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Straddle Methods

  • #1
  • First Post: Apr 29, 2008 2:50pm Apr 29, 2008 2:50pm
Hi,
Was thinking to try straddle before London open. What pairs are better than others to do this, and would +-50 pips from current price be good, or would be better see range of last 4 hours and put buy/sell just a little bit out of the current ranges. Any thoughts? Thanks.

Sometimes it will go up 50 pips and hit my buy, and then drop 100 pips and hit my sell. So that's a bad trade. Any thoughts, or ways to make it better.
  • #2
  • Apr 29, 2008 7:35pm Apr 29, 2008 7:35pm
London... GBPUSD and other pound-based pairs often move around a half hour after the London open (GBPJPY, GBPCHF, etc). Sometimes they wait till the euro open tho (an hour later), so be prepared for that. If that happens the EURUSD and the EURJPY usually move pretty well.

Take a look at the Tokyo&Aussie sessions and get a range from that, use that as a straddle. Seems to work pretty well.

You'll still get whipsawed like crazy tho (whipped in, then out to SL) so be sure to set BE very quickly (end of the first profitable bar usually, assuming M15). Nothing you can really do about that, altho whips seem to happen more on Monday and Friday (Crunch the stats on that, but it's a trend I've noticed over the last few months). Some people will use a tighter SL, others close half their trade for a partial profit and move to BE, lots of ways to manage your gains/losses... just find whatever works for you.
  • #3
  • Apr 29, 2008 8:57pm Apr 29, 2008 8:57pm
Thanks Rabid, btw, what is BE stand for?
  • #4
  • Apr 29, 2008 10:01pm Apr 29, 2008 10:01pm
Breakeven ... entry (including slippage) + spread
  • #5
  • Apr 29, 2008 10:37pm Apr 29, 2008 10:37pm
Quoting Rabid
Breakeven ... entry (including slippage) + spread
thanks. that's great advice for me.
  • #6
  • Apr 30, 2008 12:58pm Apr 30, 2008 12:58pm
Do you have any data to support this method? have you backtested anything thus far? I am very interested
  • #7
  • Apr 30, 2008 7:12pm Apr 30, 2008 7:12pm
Quoting Clouds
Hi,...Any thoughts, ...
Spend less time Posting and More Time Educating You.
What if I were to say...
"20 Pip SL and 100 Pip TP is the way to go."
Would you blindly take that {verrry poor} advice?

Listen Guys, There is no "One Size Fits ALL" in this game.
You need to have your Armour Custom Tailored to You and YOU are the only one person alive that can give your Armourer your True Measurements. Lie if you like, but then don't expect it to fit Perfectly. And, Just as in the physical world, Dimensions Change & alterations become the norm.

Oh, & btw.
Apart from you being employed in the Armoury, You have just been promoted to "Master of the Armoury."
So guess what.

It's up to you.

Cruel World, ain't it.
  • #8
  • Feb 22, 2026 2:16am Feb 22, 2026 2:16am
Hey,

I have a question regarding a similar topic.

It's about, for example, a quick entry by clicking sell and buy simultaneously on the EURUSD, but not before the news. I'm thinking of 1-2 trades per day, for example, after the opening of London and New York. What parameters would you recommend for this type of trade to eliminate the whipsaw effect as much as possible? I'm referring to the distance in pips of the SL and TP. I'm currently testing a SL of 20 pips and a TP of 30 pips. As you can see, with this approach, 1 whipsaw will erase 4 successful setups, meaning it's a negative RR ratio of 1:4.

Cheers
  • #9
  • Mar 6, 2026 1:31am Mar 6, 2026 1:31am
Quoting iwasaq
Hey, I have a question regarding a similar topic. It's about, for example, a quick entry by clicking sell and buy simultaneously on the EURUSD, but not before the news. I'm thinking of 1-2 trades per day, for example, after the opening of London and New York. What parameters would you recommend for this type of trade to eliminate the whipsaw effect as much as possible? I'm referring to the distance in pips of the SL and TP. I'm currently testing a SL of 20 pips and a TP of 30 pips. As you can see, with this approach, 1 whipsaw will erase 4 successful...
Hey iwasaq,

Technically there is no such thing as a negative RR ratio. What you're referring to is a RR ratio < 1, i.e. risk = 1, reward = 0.25

There is no profitability edge in SL : TP ratios alone. Grid trading (trading in both directions simultaneously) can work for a while in the right market conditions but risk blowing up when the market changes. The key with this approach (just like with most strategies) is controlling and minimizing the losing positions, very difficult for inexperienced traders who never work on this aspect of trading.
  • #10
  • Mar 11, 2026 8:49am Mar 11, 2026 8:49am
Quoting CoffeeFreak
{quote} Hey iwasaq, Technically there is no such thing as a negative RR ratio. What you're referring to is a RR ratio < 1, i.e. risk = 1, reward = 0.25 There is no profitability edge in SL : TP ratios alone. Grid trading (trading in both directions simultaneously) can work for a while in the right market conditions but risk blowing up when the market changes. The key with this approach (just like with most strategies) is controlling and minimizing the losing positions, very difficult for inexperienced traders who never work on this aspect of trading....
What?? What do you mean there is no such thing as negative RR. How do you even label it then? Every time you enter a trade, you have to say the ratio <1, like I get it, but who really does that? It’s so much simpler to just say you’re entering a trade with negative RR because even if you hit your profit target, you’ll still end up earning less than what you initially risked anyway. And when it comes to grid based strategies, you really need to use a cent account and keep your lot sizes minimal to give yourself the most breathing room for drawdown. No big experience is needed for it, there are many algos that work this way. So yh, just stop relying on chatgpt or whatever you’re using for your answers, please
  • #11
  • Last Post: Mar 12, 2026 3:46am Mar 12, 2026 3:46am
Quoting rieusO
{quote} What?? What do you mean there is no such thing as negative RR. How do you even label it then? Every time you enter a trade, you have to say the ratio <1, like I get it, but who really does that? It’s so much simpler to just say you’re entering a trade with negative RR because even if you hit your profit target, you’ll still end up earning less than what you initially risked anyway.
Everyone is free to call a rabbit a turtle if they like.

However, traders that mislabel and misapply trading knowledge will get the results that they get. For example, when pros and amateurs say RR ratios, they mean 2 entirely different things. The former usually refer to the risk and reward potential of a particular set up, while the latter usually refer to their own SL to TP ratio. And they get the results that they get.

Quoting rieusO
{quote} And when it comes to grid based strategies, you really need to use a cent account and keep your lot sizes minimal to give yourself the most breathing room for drawdown. No big experience is needed for it, there are many algos that work this way.
Yes, many algos that work this way and they all blow up if they (or the trader) don't manage the pile of losing positions that build up over time, otherwise everybody would become passive millionaires. I know because I've built and tested many grid algos over many years.

Quoting rieusO
{quote} So yh, just stop relying on chatgpt or whatever you’re using for your answers, please
I've been trading for 18+ years, over 5+ years full time. I do this for a living, why would I need ChatGPT for answers?
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