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Round numbers strategy

  • #21
  • Apr 13, 2009 7:47am Apr 13, 2009 7:47am
Quoting errich fx
Interesting trade


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forexinterval
Thanks
  • #22
  • Apr 13, 2009 10:24am Apr 13, 2009 10:24am
Attached Image (click to enlarge)
Click to Enlarge Name: 20 pips usd chf.png Size: 32 KB

This trade i've let it run and i moved my sl at the round number.
Weekly support 1 might be a good place for TP.
  • #23
  • Apr 14, 2009 11:27am Apr 14, 2009 11:27am
I gave this a try last night. At 7:00 New York time I checked the GBP/USD hourly chart. I have the 25 and 50 emas to help me with trend. The 25 was above the 50 with good angle so I figured that any move would be to the upside. At the time price was at 4846. I set a buy at 4875, stop loss at 4850 and a take profit at 4900. It hit my take profit while I was asleep. I will do some more checking on this method. Thanks for the suggestion.
  • #24
  • Apr 14, 2009 11:36am Apr 14, 2009 11:36am
what will be the psycholgical numbers with crude oil and gold?
  • #25
  • Apr 14, 2009 12:29pm Apr 14, 2009 12:29pm
Quoting bksujal
what will be the psycholgical numbers with crude oil and gold?
Every 50 cents in crude are significant (51.00, 50.50 etc), in my opinion they are more reliable than round numbers in forex and in gold i would say every 5 or 10 dollars. Try them for yourself.
  • #26
  • Apr 15, 2009 6:48am Apr 15, 2009 6:48am
Quoting Peke5
Every 50 cents in crude are significant (51.00, 50.50 etc), in my opinion they are more reliable than round numbers in forex and in gold i would say every 5 or 10 dollars. Try them for yourself.
I agree and would add that round numbers are respected in commodities in general more than in forex.

As for gold $50.00 has not held as support or resistance intraday recently, but has acted more like a pivot point.
  • #27
  • Apr 19, 2009 6:04pm Apr 19, 2009 6:04pm
Attached Image (click to enlarge)
Click to Enlarge Name: testing 20 round number eurusd.png Size: 35 KB


It moved up and down 20 pips for 4 times.
  • #28
  • Apr 19, 2009 6:31pm Apr 19, 2009 6:31pm
Attached Image (click to enlarge)
Click to Enlarge Name: testing 20 round number eurusd1.png Size: 34 KB
  • #29
  • Apr 20, 2009 7:44pm Apr 20, 2009 7:44pm
Attached Image (click to enlarge)
Click to Enlarge Name: RN 20 USD CHF.png Size: 28 KB
  • #30
  • Apr 21, 2009 4:41pm Apr 21, 2009 4:41pm
Attached Image (click to enlarge)
Click to Enlarge Name: RN PLUS FIBS.png Size: 29 KB


There is a major fib level passing right between the round numbers.
It appears that traders are trading in different directions which brings confusion.
  • #31
  • Edited 6:42pm Apr 21, 2009 6:10pm | Edited 6:42pm
Attached Image (click to enlarge)
Click to Enlarge Name: RN GBPUSD.png Size: 34 KB


There are more conditions before entering this kind of trades but the action is just there.

I am trying to find these conditions:
1 trading hours
2 not interference with fib levels
4 not trading during news times or specific times before and after the news
3 etc...
  • #32
  • May 12, 2009 10:39pm May 12, 2009 10:39pm
I placed a bunch of orders at the same time for different currency pairs with support above round numbers and resistance
below round numbers. I used the grid at a 100 pips. The average profit came good. This might have some potential of improvement.

Attached Image (click to enlarge)
Click to Enlarge Name: AVERAGE RN 1.png Size: 30 KB


Attached Image (click to enlarge)
Click to Enlarge Name: AVERAGE RN 2.png Size: 27 KB


If members like to experiment and post some suggestions that will be great.

Thanks,

Constin
  • #33
  • May 21, 2009 6:33pm May 21, 2009 6:33pm
I've been experimenting with post #32 and #1.
I've used the indicator i've attached to see the maximum drawdown and profit. I've placed the trades starting at the Asian session and closing them the next day starting at the Asian session and so on.
We need more rules for entry and exit trades. Any ideas?

Attached Image (click to enlarge)
Click to Enlarge Name: bal picture.png Size: 33 KB


Attached File(s)
File Type: mq4 Bal_Eq_Ind_v1.1.mq4   8 KB | 677 downloads
  • #34
  • May 22, 2009 6:16am May 22, 2009 6:16am
This is my favorite strategy but I just outlined its rules in the presentation quoted in the first post of this thread. When you trade at or around round numbers there are a lot of additional rules you can apply. You can find a lot of real examples of this and other strategies here http://forexsb.com/blog. You can also use the Forex Strategy Builder to test and refine your entries, position and money management rules for this and other strategies. This is not an advertisement because the software and the blog are free.
  • #35
  • May 22, 2009 6:22am May 22, 2009 6:22am
I can share a few more rules that could be helpful when you trade around round numbers.
- You should open a position when the price moved at least 15-20 pips for UR/USD and USD/JPY;
- You can use 6+ pips stop (if the spread for these pairs is 1-2 pips and at least 6-7 pips limit.
- You can close half of the position at 6-10 pips profit, move the stop at break even and use trailing stop for the second half.
- If 2 or 3 major pairs test round numbers at the same time your chances for success are greater.
- Follow the newswires comments about the levels with orders. For example if you read that bids are placed 10 pips below the figure, you can buy at the round number add 8-9 pips below and place stop loss below the bids.
I can tell you a lot more about this strategy but recommend you to follow the blog and see real examples.
  • #36
  • May 23, 2009 2:32am May 23, 2009 2:32am
Yesterday we had an interesting price action around the key 1.4000 level. You can read more about that here:
http://forexsb.com/blog/2009/05/euru...bers-strategy/

http://forexsb.com/blog/wp-content/uploads/eur-rn.gif
  • #37
  • May 23, 2009 3:01am May 23, 2009 3:01am
Quoting srmfx
Yesterday we had an interesting price action around the key 1.4000 level. You can read more about that here:
http://forexsb.com/blog/2009/05/euru...bers-strategy/

http://forexsb.com/blog/wp-content/uploads/eur-rn.gif
Thanks for posting Srmfx,
On your chart it appears that eurusd hit the 1400 and on my did not hit the 1400.

Attached Image (click to enlarge)
Click to Enlarge Name: eurusd m1,2.png Size: 25 KB


Am i missing something?

Constin
  • #38
  • Edited 9:00am May 23, 2009 8:47am | Edited 9:00am
Constin probably your broker was missing something. Ibfx shows highest bid 1.4006 and Oanda highest mid price 1.4006 (bid is 1.40055). I was trading during the test of 1.4000 but you can see yourself:

http://img41.imageshack.us/img41/13/ibfxb.gif
http://img41.imageshack.us/img41/2527/oandaz.jpg
http://img196.imageshack.us/gal.php?g=ibfx.jpg
  • #39
  • May 23, 2009 9:07am May 23, 2009 9:07am
The round number strategy is a very effective as Institutional traders like to make hard runs for whole numbers. It's almost a game in a sense for them to reach that number. Ususally within 40 (or so) pips near a whole number, you'll see market volume and momentum way up, in attemping to touch the nearest whole number. And once that whole number has been touched, market usually retraces another 50-100 pips.

If the market touches and passes that whole number, price will usually go another 50-100 pips, past the whole number.
  • #40
  • May 23, 2009 2:41pm May 23, 2009 2:41pm
Quoting Jhig
The round number strategy is a very effective as Institutional traders like to make hard runs for whole numbers. It's almost a game in a sense for them to reach that number. Ususally within 40 (or so) pips near a whole number, you'll see market volume and momentum way up, in attemping to touch the nearest whole number. And once that whole number has been touched, market usually retraces another 50-100 pips.

If the market touches and passes that whole number, price will usually go another 50-100 pips, past the whole number.
I see what you mean.

Attached Image (click to enlarge)
Click to Enlarge Name: numbers chassing.png Size: 33 KB
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