1 trade a day

London opens at 3am but the Frankfurt opens at 2am which you will see price start to move during this time. If you are in the trade at 2am and in profit, when the london opens at 3am you will either see price continue in its direction or maybe a reversal. This is where the smaller stops comes into an advantage.

So now you have contradicted your previous post, whih said you only enter aftr london open?

Both Frankfurt and London are in Europe...The London market is the Next session to open after the Asian. The frankfurt opens at 2 which is part of the London session. You can start trading the london at 2am instead of 3am. Some traders like to wait until 3am and some like to trade at 2am. I personally start mine at 2am. No contradiction here, you just need to know your session times. For instance the Sydney and Tokyo are part of the Asian Session. So if someone tells you to trade the Asian Session what are you going to do? One starts at 6pm and one starts at 7pm EST. US is only 8am so you wouldn't want to start before 8am. You can find the times at www.forextechniques.com/tradingtimes.html

ok mate i'm with you now, you just confused me with the reference to london open(i am in the uk) and i do know that europe opens 1hr before, we refer to it as European open

thanks

No problem....I am used to referring things to either the Asian, London or US sessions. So when I refer to the London session I am starting at 2am EST instead of 3am. I will have to remember to be more specific in my post when referring to these times.

I posted my thread on fib trades since I have had so many ask for it. So I thought I would let you all know about it as well. Go to www.forexfactory.com/showthread.php?t=184010

I am guessing you meant 6pm to 2am EDT instead of EST. Is that right?

Thanks for your time

No I meant EST.....Eastern Standard Time......which is the time zone I live in.

I am guessing you live in Indiana then b/c I am in Columbus Ohio (= NY time) and we are in EDT which is the sametime as Indiana EST right now.

Do you only trade G/U and E/U?

Thanks

how can i decide to go up or down with your system ?

Sweet trade this morning for those that caught it, I was lazy enough to stay tucked up in bed too long to even place a market order, let alone stops/limit orders. Having to wake up at 6:45 to place those orders is tough work I tell you

http://i28.tinypic.com/20usjlh.gif

Hey guys I wanted to make another post regarding money management that a friend of mine uses on his account. He uses all the rules that I posted earlier with the sl and tp levels. He uses the same money management rules that I mentioned also, but he takes one pair out of the 5 he trades and places a larger lot size then all the others. What he did basicly just to test out this system was opened a separate trading account that he uses for this strategy only. He placed 2500.00 in this account. He wanted to see how fast he could make it grow using this strategy and money management rules. What he does is place trades on 4 of the 5 pairs with .1 lots on them or $1.00 per pips. So now he is risking $120 if all 4 should result in losing trades. On the 5th currency he is placing 1 full lot on the trade. You can pick any currency but he is just doing this with one. Now if this trade goes bad then he loses $300.00 on that currency. He is risking a total of $420.00 on all these trades combined.

I can't really give his results yet since he just started using this strategy last week but I will keep everyone updated on his results. All I can say at this moment is he is pretty happy and his account has nearly doubled so far. But you have to be careful by taking this approach since you are overall risking more than 5% of your account unless you have a larger account size to begin with.

Lets do some basic math with this way. Lets say he is using the gbpusd as his 1 full lot and he trades for a full week with it. If he wins 2 out of the 5 trades for the week for an average of lets say 75 pips per win and he has his set sl at 30 pips.

3 losing days X 30 pips = 90 pips = $900.00
2 winning days X 75 pips = 150 pips = $1500.00
Total Net winning = $600.00

That's not counting the money you would make on the other 4 currencies.

Not bad for a weeks work with only 2500.00 trading account. From what he told me he only lost 1 trade last week on the one with the full lot size.

I just wanted to share this with you guys because a lot of traders do not like to trade with strict money management rules and find themselves risking too much than they should be. By doing this you can risk a little more without going crazy with it.

I will update you guys at the end of the week to see how he is doing with it.

Also, he uses the same pair as his full lot trade every day. He doesn't change currencies.

Hope this helps.

I thought I'd try this yesterday on GBP/USD, got stopped out on the long and short, -30 pips each.
I guess it will average out, I may have picked a bad day to start.

Kim

Adjust your SL once your are in profit. I usually move my SL from 30 to 15 once I am up around 25 to 30 pips. Sometime I will wait a little longer or even less just depends on how the market is moving and if there are any news releases coming out. If there is no news releases then chances are the market won't move that much. Needs a little help going 100 pips or so but not always. But on nights like last night you could have lost 15 instead of 30. The original post was a 1:1 ratio so if you stuck with that you would have lost nearly 80 pips. So losing 15 doesn't sound that bad now. Also, I never trade both directions. If I get a sell entry like I did last night I will close out my pending buy entry. If I lose then I lose and I am finished. Or I may re-enter in that same direction if price comes back to it. But every trader has there own preference.

Another key point is you don't want to skip days if you are going to stick to this system. The reason I say this is because I have seen on several occasions where traders will lose a trade and get frustrated and will set out a few days to collect there courage to enter the market. Well, during those few days they set out the market actually won all of those days. So now they seen that it was winning again so they decide to enter the maket the next night. Well guess what? That night was the next losing trade. So now they are down 2 trades in a row. So it is very important that you stick to a system like this one since you only make one trade per day. I would suggest demo trading it before you go live just to see what the system can do. But remember you will have losses. They are like death and taxes. There is no way around it.

hai ufgators
may i know what pair of currency do your friend use?

Hey guys,

There was some talk a while back about staying out of the trade if the asia range was too big. What would you consider to be the max range for GBP/USD? eg. it was 106 pips overnight so I stayed out, that would make 55 pips to 161.80% from our open, pretty large.

Typically as I write this it is looking like it may hit our first TP but your thoughts would be appreciated.

Many thanks.

Really? From what I have seen GBP/USD's Asia session averages around 70 pips. I normally start to worry if it excedes the 100 pip mark.

How many is too many?

hi guys, please clarify this:

1. we open pending orders at UK open, 07.00 GMT, isn't it ?
2. when is the end of the day (the time where all orders should be closed) ?

Hi Herry,

In reference to Paulus initial post, it suggests that "our" close of the day is when London closes.
This is because we are only trading with GBP as base currency.

Hope it helps
Jesper

You are indeed a wise person, Ufgators, i really like your money management.

What do you think about this:
Instead of taking half profit at first TP (1.618) and letting the rest run.

Buy example: with half lot size of what you would trade normally with Paulus system.
Entry as before, 10 pips + spread above the asian high.
SL appprox 30 pips below or half of potential profit target (depending on Asian range) which is 1.618.

Then a second Entry order 7 pips above first TP (1.618) with a TP at 2.0 and a SL about 20 pips below or half of potential TP (depending on Asian range) at 2.0 fib.

That should make a risk/reward (R:R) of 1:2 in theory?

Of course if eveything goes well, you would have lost 50% earnings at the first TP at 1.618 since you don't close half anymore, but simply start out with half to begin with.
But i think the money management would have taken a turn for the better.

Or what do you think?


With kind regards
Jesper