simple trend method, discussion requested

dear all,

first of all.. I did not traded this yet but it seems to be profitable.
maybe somebody have already experience with this method and can give some advise about it.

the system:
set buy order 30 pips above daily open (0 gmt)
set sell order 30 pips below daily open (0 gmt)
sl: 30 pips
tp: 3 parts, 30/60/90 pips (if 30 reached, set 60+90 to break even)

just took last week of GU as example, took 420 pips.
on second day it missed +60 pips for 2 pips.
on third day (loss) he just missed 2 pips to get +30 and break even other. (would save 120 pips alltogether).

maybe there is already an EA out there for this?
or somebody is interested to code it?

thanks for your comments

for better understanding:

open 3 trades, 30 pips above daily open

close first trade with 30 pips profit
close second trade with 60 pips profit
close third trade with 90 pips profit
after closed first trade, set second + third trade to TP breakeven.

thank you

I have seen a system similar to this but I can't remember where. The good news is that it did appear to be profitable. At least the people trading it reported it as profitable. Worth pursuing.

Why not an EA ?!

And about the trading Pairs?!

If you are trading all i think for tp and sl y should use ATR

EA is the goal.. i requested it here.
http://www.forexfactory.com/showthre...95#post5440795

pairs ... could be used with every pair.
should just be done some backtesting based on average daily range.

brgds

I'm bumping this because I want to ask folks to drop their opinions on how improvements could possibly be made. The system is pretty simple and I have seen similar systems (one in a thread called something like "Big banks and institutions" or something, which is a huge thread and a ton of people found the strategy profitable). It seems following the daily trend on certain session opens (I think the London Session would be the best, fortaleza seems to think the Asian session or 0:00 GMT is better) is a generally good strategy because most days the market continues to trend further and further of the direction of the initial move.

Based on backtesting SL/TP based on 30 day ADR (Average Daily Range) is a big failure, as is specific session ADRs (Average Session Range? Lol). Exit strategy is also a big problem for me. When the market starts ranging at 60 pips profit I'm not sure what the profitable decision is in that case: take the 60 pips or let it run. Backtesting shows letting it just run generates pretty good profits, but we can always do better. And backtesting is no guarantee either way.

This is why I'm asking if anyone has an idea if ranging markets mean your trade for the day is pretty much done because the tendency is for the market is to reverse in such a situation. I'm also thinking that checking to see what direction and strength the trend is going perhaps allows to secure more profits through better TP and SL levels. Maybe ATR could show it. I could backtest all this but it is unreliable and very bad for actually designing a system around. I'm sure there is plenty of wisdom on this forum that could figure out the best approach to executing this system. Or maybe messing with it will kill the system.

a simple yet purely PA trading method
quick questions:
any specify pairs to trade?
how about any filtering on ranging days?
i notice it might hit both stop loss
comments?

There are plenty of threads on this style of trading. Not being negative, just saying. This would fall mainly under breakouts ot momentum. Most of them try and time the entry with session openings. They sometimes work for a period of time and then they go through periods of time where they fail spectacularly. Traders often mistake these strategies for working better than they do because they don't take into account widened spreads or slippage. If done correctly however, they can be succesful. I recommend knowing where supports and resistances are at.

Hitting both stoplosses will only possibly happen due to 60 pip ticks (with using an EA) or being too slow. The main danger is new support being formed between 30-59 pips from current price which will cause 3 trades to lose 30 pips.

@2+2
What do you mean by widened spread? Is the spread higher at the start of London Session? I thought that great liquidity at the start of that session meant smaller spread? Is that incorrect?