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The London Trade

  • #21
  • Apr 26, 2016 3:12am Apr 26, 2016 3:12am
Quoting Sammih
{quote} This is The London Trade system. We are looking to trade the London open in a manner consistent with the trend. On that day for instance, when the London session opens, our system,based on the MA's cross and TDI are reading short. It is imperative that you trade with the TDI on your side. When the buy MA crossover happens, price is at previous sessions high plus we are not convinced the TDI is buy yet so we wait for the next candle to close. This is the importance of waiting for closes. We were right and price reverses. But we cant sell,...
That helps a lot, thank you very much
  • #22
  • Apr 26, 2016 3:24am Apr 26, 2016 3:24am
Quoting josh11
{quote} That helps a lot, thank you very much
You're welcome
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  • #23
  • Apr 26, 2016 3:29am Apr 26, 2016 3:29am
Im looking at today's open. Price started from the 34 SMA. If we had taken our trade there, we would have made twice as much pips. But TDI and MACD were short even though The blue MA is above yellow. We traded on the break of previous days high. but:

In a different scenario, price would have moved up and pulled the indicators with it, then come back down to the 34SMA. That's a perfect entry. I've seen many traders take a short there, i know i used to, but with price heading down and all indicators heading up, buy! If you are wrong the move down will compensate when you reverse. Almost always.
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  • #24
  • Apr 26, 2016 4:24am Apr 26, 2016 4:24am
Day two of forward test ends with +40 pips. Price is at resistance at the moment, will trade again tomorrows open. cheers!
I'm high on trading, cant you tell?
  • #25
  • Apr 26, 2016 4:57am Apr 26, 2016 4:57am
Quoting Sammih
Day two of forward test ends with +40 pips. Price is at resistance at the moment, will trade again tomorrows open. cheers!
Nice system Sammih

I am tempted to automate , but I will follow for a while to better understand the rules.
No guts, no glory
  • #26
  • Apr 26, 2016 6:29am Apr 26, 2016 6:29am
Quoting abokwaik
{quote} Nice system Sammih I am tempted to automate , but I will follow for a while to better understand the rules.
Thank you abokwaik. Yes, its still a system in the oven, im looking to make it water proof. For instance, specific entries and exits.

Look at today for instance, its days like these that this system should make the most pips but i got out early because of the resistance, now that the resistance seems to be giving way, i need a way to get in. Thats why im saying its still under construction.

I have been working on the idea that came to me today after josh11's input. I have a hypothesis: Prices hit the 150 level over 80% of the time upon breaking previous days highs or lows. I am thinking of modifying exits to the 150 and 200 on the Fibonacci retracements, based on previous days range. Today for instance, my targets would have been here, target 1 at 150, move remaining positions stop to BE and target 2 at 200:
Attached Image (click to enlarge)
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  • #27
  • Apr 26, 2016 6:41am Apr 26, 2016 6:41am
I like to think I am a day trader. My trades are taken within the day and closed the same day as the previous trades show. I am documenting this years results based on this system using a manual back test, including a picture for everyday and hopefully we can arrive at some level of structure on definite entries and exits.

I think a day trader needs more than one trigger to get in and out.
Attached Image (click to enlarge)
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  • #28
  • Edited Apr 27, 2016 1:03am Apr 26, 2016 11:38pm | Edited Apr 27, 2016 1:03am
A good morning to all traders. Another beautiful morning to try and make some pips. im looking at the market right now and i'm very tempted to say, it looks very good today. But before that, here are two exit strategies that you can add to your arsenal with this trade:

  1. Exit when the MACD signal line crosses the histogram in the opposite direction
  2. Take profits at 150 Fibonacci retracement levels with stops below the 38.2 level (Use previous days range to get the fibonacci)

​You can also mark the 150 and 200 levels on either side of the market to project the daily range either side. I have a bullish bias

Attached Image (click to enlarge)
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  • #29
  • Apr 26, 2016 11:44pm Apr 26, 2016 11:44pm
Quoting Sammih
A good morning to all traders. Another beautiful morning to try and make some pips. im looking at the market right now and i'm very tempted to say, it looks very good today. But before that, here are two exit strategies that you can add to your arsenal with this trade: Exit when the MACD signal line crosses the histogram in the opposite direction Take profits at 150 Fibonacci retracement levels with stops below the 38.2 level ​You can also mark the 150 and 200 levels on either side of the market to project the daily range either side. I have a bullish bias...
From my chart the TDI and Stoch are bearish and MACD is turning! so shouldn't we be looking for short trades?
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  • #30
  • Apr 26, 2016 11:44pm Apr 26, 2016 11:44pm
To matters system, the bands are absolutely converging, so we wait for them to open up, preferably just as London opens in an hours time. TDI and MA cross are short, stochastic is oversold and MACD is mixed, on the verge of short. Within the hour we should have a clear indication of where we stand but the best indicator is the action at the open. I am hoping it will be a buy signal because there is such potential there , upto 1.47
Attached Image (click to enlarge)
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  • #31
  • Apr 26, 2016 11:54pm Apr 26, 2016 11:54pm
Quoting josh11
{quote} From my chart the TDI and Stoch are bearish and MACD is turning! so shouldn't we be looking for short trades? {image}
Good morning josh11. Yes they are but first things first. We wait for the open. The hypothesis is that the London Traders like the trend. We are in an uptrend. Its likely the market will reverse by then.

However, if the London open seems to prefer short, we will get in, no questions asked. Its just that the Asian session taking prices lower lets us buy at cheaper prices should the trend up resume.
I'm high on trading, cant you tell?
  • #32
  • Apr 27, 2016 12:05am Apr 27, 2016 12:05am
Quoting Sammih
{quote} Good morning josh11. Yes they are but first things first. We wait for the open. The hypothesis is that the London Traders like the trend. We are in an uptrend. Its likely the market will reverse by then. However, if the London open seems to prefer short, we will get in, no questions asked. Its just that the Asian session taking prices lower lets us buy at cheaper prices should the trend up resume.
Morning mate
  • #33
  • Apr 27, 2016 12:05am Apr 27, 2016 12:05am
Here we go, if this move up is sustained, and TDI goes long, preparing to buy. Target 1.47 stop 1.453
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  • #34
  • Apr 27, 2016 12:31am Apr 27, 2016 12:31am
Quoting Sammih
Here we go, if this move up is sustained, and TDI goes long, preparing to buy. Target 1.47 stop 1.453
Would you say that TDI crossed or should we wait?
  • #35
  • Apr 27, 2016 12:36am Apr 27, 2016 12:36am
Quoting josh11
{quote} Would you say that TDI crossed or should we wait?
Lets get in here with the targets and stops stated above. TDI and MACD are shifting sides though you can wait another 30 mins just to be absolutely sure. I have entered because the trend is up and we have just closed above previous sessions highs.

tp 1.47
sl 1.453
Attached Image (click to enlarge)
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  • #36
  • Apr 27, 2016 12:48am Apr 27, 2016 12:48am
how you determine your tp and sl and pls describe your fibonacci levels too
best regard
raj
stay cool when trade begins
  • #37
  • Apr 27, 2016 1:04am Apr 27, 2016 1:04am
Quoting rajkumar3192
how you determine your tp and sl and pls describe your fibonacci levels too best regard raj
Please refer to post #28
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  • #38
  • Apr 27, 2016 2:10am Apr 27, 2016 2:10am
[quote=Sammih;8891304] The London session traders respect the trend and will move the market a minimum of 40 pips in the direction of trend at least 80% of the time upon the London open....... It is imperative that you trade in the direction of the overall trend. Every other day the market will move in the direction of the major trend and that move will be our bread and butter.

I may have missed it, as I have not read right through the post, but it is not as simple as this as London very often puts in a significant fake move before it moves back in line with the momentum of the morning, so trading right at the open is unwise - always better to wait a little bit for this counter move before entering. They do usually move the market with the trend, but they like to fake it first. As always, trading the London open is all about timing. good luck with your thread
  • #39
  • Apr 27, 2016 2:18am Apr 27, 2016 2:18am
Quoting cat
Quoting Sammih
The London session traders respect the trend and will move the market a minimum of 40 pips in the direction of trend at least 80% of the time upon the London open....... It is imperative that you trade in the direction of the overall trend. Every other day the market will move in the direction of the major trend and that move will be our bread and butter. I may have missed it, as I have not read right through the post, but it is not as simple as this as London very often puts in a significant fake move before it moves back
...
Thank you so much cat for your insight.
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  • #40
  • Apr 27, 2016 2:21am Apr 27, 2016 2:21am
Looks like I took my trade too early today. TDI failed to go long . Holding on to a losing position because the trend-line up is holding. If it holds, well and good, otherwise I might have to reverse.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM30 opentrade.png Size: 63 KB
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