1 trade a day

This is not my idea but ,it took my fancy as I wanted an indicator used on it but the principle is sound

Take the hi low of the Asian session,I will include a indicator that does this automatically.

As the next market to open is London we want to watch any GBP spots

I have set this up on

gbpusd
gbpaud
gbpjpy
gbpcad
gbpchf
gbptry

We set a buy 10 pips above the high and a sell 10 pips below the low

Once triggered we stay in until 1 of 3 criteria is met

Our Stop is hit
Our Target is hit
The close of the day without our SL or TP being hit.

An example of 2 trades are shown below

A few notes

No indicators are used to asses trend OB OS etc etc
This is 100% mechanical
We trade just once a day per spot
Can be used with an EA
The red horizontal lines are automatically drawn
Set up your fib tool with just 0.00,50%100% after the numerical figure in the properties add %$ after the figure to get the price on the fib lines
If a long is triggered place your 0.00 on the low and move the tool to get the 50% line on the high.The 100% line will give you your TP the 0.00 line will give you your SL

Very important

My life is changing daily some times I think I can day trade with the time i have other times my personal situation changes and I cannot regulary get to my PC hence my recent quite period

This is a min time input system without the need to monitor on a regular basis once in.

I have no stats etc etc so please no questions regarding that

I managed to trade just 2 on the 6 GBP spots available to me as thats all I had set up for last week given my time and the fact Ive only started looking at this.This is a commercial product this is not my idea but I like the princple.

If people want to use a different fib level for the tP or a different stop feel free.Lets throw all ideas into the pot but I dont want a clutter of indicators.

y results for last week on my 2 spots

GBPUSD +125+97+68+118-82 (+327)
GBPAUD +143+4+116-145+114 ((+232)

Total gain + 559 pips

I have included

The Hi Lo ind for the Asian session
My template

PS.. on the screen shots of the trades trade 2 top right should read exit not eneter ....

Paulus

Update figures

GBPJPY 169+108+143+89-108 = +401

GBPCAD -113+89-89-87+100 = - 120

GBPCHF 100+81+77-143+134 = +249

it looks like an EA can help back test and forward test this system

This is very similar to the 7am-9am Big Dog USD Breakout Strategy and London ORB threads located here on this forum. I myself use a similar ORB strategy. EA's have already been programmed on those threads.

Nicely explained though, Paulus and you have expanded other currency pairs which is very helpful. Thanks!

Is this the H1 TF?

Igroks method covers it all since a long time ago. Good luck with the range trading technique.

yes thought there may be others like this or even this system already here

but thought id post any way it seems good and its good to share :-)

yes its one hour time frame

last one

GBPTRY +125+146+136+230+139 = +776

anyone kind enough to post EA for this system since there is already similar EA been made ?

Paulus , will this system be good for all available currency pair ? if we diverse our trades to multiple currency pair , the result could be better ? I think it will be rare for all currency pair to hit SL at the same time. we could assign nano or micro lot for each currency pair. what do u think ?

It is a good clean and simple system.
The point is, YOU thought it out, it doesn't matter that similar systems exist.

Good job and I hope things have sorted themselves out for you.

http://www.forexfactory.com/news_archive.php?id=92710

here is another positive review of the system...

PC

Hi Paulus.
Interesting System but how many pips is the SL?

Thanks tordi.

gonna test this on demo tomorrow .. thanks for sharing Paulus

use Fibo. SL at 0% .. TP at 100% .. If short, SL will be put at Asian High and if long, SL will be put at Asian Low.

for example

MR. Paulus always your post in FF is more than usefull ... i just fallow all your post becase they are really really great.

thanx tooooo much

Thats it ..............risk reward is always 1:1

But Im aiming to use money management

If I can use a spread betting company I will do so.

using a spread betting company means slightly more spread but the MM should be simpler as the different swaps are different pip $ values

so Stop at 100 pips risking 3% of 5k account is £150 I stake £1.50 per pip
Loss if it happens is £150

On another trade another swap it may be 75pips stop risking 3% of 5k account is still £150 but I can now stake £2 a pip

If a stop comes along of 300 pips still staking my 3% of 5k bank which is £150 I stake £0.50p per pip

In all cases the loss is still £150

Forexisfx.....

the reason the system uses the GBP spots is that London is the 1st market to open after the Asian session so technicaly heavy trading on any GBP spot should occur.

Ive not looked at other spots the most commen being EURUSD Iv not done a complete blow by blow pip count but on eurusd on the last 13 days looking roughly its had 4 losers 2 approx break even and 7 winners

cheers

Paulus

No TS? cfp85 trade would have been a bad trade without it, would it not?

i just put that as a trade example .....i would put at lease 25pips TS or at least change SL to breakeven ..

I will post this but up to the individual if you use it

All I have done is use the Fib Expansion tool to project the 161.8 level below our entry

They say in Fib circles the 61.8 and the 161.8 are the most looked at and traded at levels.

It may be a good idea if the 161.8 level is hit to close out 50% and bring your stop to break even as its clearly a danger area.

Time will tell

P

Hi Paulus.
I like what you have shown us here and went to work this evening doing some backtesting. It's manual and not in spreadsheet format so I can't post a shot but have summarised the figures. I tested cable from 25/3 to 24/4. There were two ranging days with no trigger and one closed at b/even at end of day.I agree with your figures for this last week so it would appear I have understood your method. There was a couple of biggish losers (-118 and -100) The tally was 2ranging,1 b/even, 14 winners and 6 losers (23 days on test 21 trades taken) winners = 80.2pips average and losers 74.0 average. giving a total of +679. This included spreads. There were three days when the trade needed closing out manually end of day and one day 24/4 stopped out.
What I then did was tried taking profit at 76.4 fib level. This eliminated the manual closing and avoided the stopped out trade. Changed the results to 17 winners and 3 losers 2 ranging and 1 b/even. The winners were worth 41.5 each and the losers 66.6 giving a total of + 505.

Perhaps an idea would be to split the stake and take some off at 76.4. Leave the rest to run. This could be preset with an order for those leaving this alone while at work. On days where the Asian session had a wide range this might be enough pips for some anyway. If trading this manually then once the 76.4 is hit the stop on the remaining could safely be moved under the 61.8 based on the test above for 80% of the time. I don't usually split my stake and trade m5 in and out and closed but I think this system may tempt me to try it.

Just to give you some feedback on the 161.8 fib idea - there were only two days in this test where it was hit and one of those was budget day. I suppose a small asian range and then big news might move it enough to hit it and other pairs may test differently.
I know you said no indis but one ema 150 is all I added and it would have saved a loss on 31 mar of -20 and turned -100 into +20on 7/4 (see red arrows).
Do you see any mileage in using two GBP pairs and two Eur pairs to spread the risk abit while trading all four at once?
Anyway thats all.
Andy

edit. I wasn't with you on the fib expansion, thought you were referring to the original fib so ignore that bit.

what time frame r u using?