i would like to share my system which i created. I am trading this strategy about 3 years. At the same time I traded also other strategies, so I do not have very long time results. But still you can see last five months results trading only this strategy.
Since february 2014 I traded this strategy separately from other strategies. In first trade explorer you can see first three months- february, march, april results. In second trade explorer you can see next month- may, june, july results. To see results clearer please check it as pips not as money. Because every month i traded bigger orders and filled deposit. In short:
- February- 39 pips (about 9,2% profit according system money management parameters)
- March- 43 pips (about 10,2% profit according system money management parameters)
- April- 80 pips (about 19% profit according system money management parameters)
- May- 61 pips (about 14,5% profit according system money management parameters)
- June- 26 pips (about 6,1% profit according system money management parameters)
- July- 38 pips (about 9% profit according system money management parameters)
All my trade explorers lives.
In general- almost all daily candles have nice shadows. On upper shadows we will try to sell and on lower shadows we will try to buy.
Trading pairs- only EUR/USD and GBP/USD.
Open order- let's make example for a buy order. At 13 hour UTC (UTC clock) we opening trading platform and waiting new low which should be 5-20 pips lower than previous. For sell order- oposite. For trading we are using 5M timeframe.
Take profit - 15-30 pips. It depends how active moving market and how big was daily range.
Stop loss- 15-20 pips. In extra cases you can use 40 pip stop los. It will be the same like open second order when first reached Stop loss. But you should use this option when you trading this strategy very well.
- When you think that it will not reach your take profit.
- If you still have opened order till next day 0700 hour UTC and you have some profit than you should close order.
- If you opened order at not very good price than you making +1 pip.
Money management- divide your account in USD at 4000. Example- if you have in your account 1000 USD than 1000/4000=0.25. It mean you should trade 0.25 lot.
Be careful, it is quite aggressive money management model. You can have only about 15 losing trades to lose your account. But if you trading fine it is quite safe. During last five months i didn't have more than 2 losing trades in the row.
Daily range- you should trade only when daily range is 50-90 pips, at that moment when you opening order.
Not trading- on friday.
Weak side of strategy- in general it is counter trend strategy.
"U" shaped day- you can also trade. See picture below. But be sure that you measuring 5-20 pips in correct manner.
Note- If you're reading this strategy not in 2014 years, then check what is average daily range. In 2011 it was bigger so stop loss was 30 pip and take profit 40 pip.
Potential- it is possible to make 40 pips every month. It is not maximum, it is normal.
According our money management parameters it is about 10% monthly. And it is about 210% yearly.
If you start with 5000 USD after five year you will have 1 522 408 USD.