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Pre London Mechanical System

  • #1
  • First Post: Edited 1:14am Feb 23, 2017 12:45am | Edited 1:14am
Pre London Mechanical System



Pairs traded: EURAUD, EURNZD, GBPAUD, GBPNZD
.............................................................................................................
Indicators:
US DOLLAR DAILY chart
EURGBP DAILY chart
AUDNZD DAILY chart
.............................................................................................................
1) A couple of hours before London Open check direction of Indicators
If current DOLLAR DAILY candle is UP, then we will be buying EUR or GBP
If current EURGBP DAILY candle is UP, then we will be buying EUR
If current EURGBP DAILY candle is down, then we will be buying GBP
If current AUDNZD DAILY candle is UP, then we would be selling NZD
If current AUDNZD DAILY candle is UP, then we would be selling AUD
..............................................................................................................
If current DOLLAR DAILY candle is DOWN, then we will be selling EUR or GBP
If current EURGBP DAILY candle is UP, then we will be selling GBP
If current EURGBP DAILY candle is DOWN, then we will be selling EUR
If current AUDNZD DAILY candle is UP, then we will be buying AUD
If current AUDNZD DAILY candle is DOWN, then we will be Buying NZD
.............................................................................................................
2) Once a currency pair and direction has been chosen wait for a HOURLY candle to retrace. Enter on the open of the next hourly candle
.
3) SL is Hourly ATR (14) TP is Hourly ATR (14) x 2. Risk/Reward is 1:2
.
4) Only one trade per day
  • #2
  • Feb 23, 2017 12:48am Feb 23, 2017 12:48am
Trade #1

Dollar- UP
EURGBP- UP
AUDNZD- DOWN

Buy EURAUD
Attached Image (click to enlarge)
Click to Enlarge Name: ZON1.png Size: 69 KB
  • #3
  • Feb 23, 2017 1:15am Feb 23, 2017 1:15am
Quoting Zondervan
Trade #1 Dollar- UP EURGBP- UP AUDNZD- DOWN Buy EURAUD {image}
Trade #1

SL Hit -20 pips
  • #4
  • Feb 24, 2017 3:03am Feb 24, 2017 3:03am
Trade #2

Dollar- UP
EURGBP- UP
AUDNZD- DOWN

Buy EURAUD
Attached Image (click to enlarge)
Click to Enlarge Name: ZON2.png Size: 70 KB
  • #5
  • Feb 24, 2017 4:55pm Feb 24, 2017 4:55pm
Quoting Zondervan
Trade #2 Dollar- UP EURGBP- UP AUDNZD- DOWN Buy EURAUD {image}
TP hit +32 pips
  • #6
  • Feb 27, 2017 3:09am Feb 27, 2017 3:09am
Trade #3

Dollar- UP
EURGBP- UP (however EURGBP has exceeded Daily ATR perhaps it will retrace?)
AUDNZD- UP

Buy GBPNZD
Attached Image (click to enlarge)
Click to Enlarge Name: Dashboard27Feb17.png Size: 83 KB
  • #7
  • Feb 27, 2017 1:47pm Feb 27, 2017 1:47pm
Quoting Zondervan
Trade #3 Dollar- UP EURGBP- UP (however EURGBP has exceeded Daily ATR perhaps it will retrace?) AUDNZD- UP Buy GBPNZD {image}
TP hit +64 pips
  • #8
  • Feb 27, 2017 11:49pm Feb 27, 2017 11:49pm
Quoting Zondervan
Pre London Mechanical System Pairs traded: EURAUD, EURNZD, GBPAUD, GBPNZD ............................................................................................................. Indicators: US DOLLAR DAILY chart EURGBP DAILY chart AUDNZD DAILY chart ............................................................................................................. 1) A couple of hours before London Open check direction of Indicators If current DOLLAR DAILY candle is UP, then we will be buying EUR or GBP If current EURGBP DAILY candle is UP, then...
Hello Zondervan,

Thanks for laying out your strategy along with the rules...

If you get a chance, please do share the reasoning for the strategy i.e. from a market behavior point of view... I feel it has something to do with Strength of the currencies/Market Sync.

Also, May i ask, where can we get the US Dollar Daily chart?

Thanks once again...
  • #9
  • Feb 28, 2017 12:29am Feb 28, 2017 12:29am
Quoting Zondervan
Pre London Mechanical System Pairs traded: EURAUD, EURNZD, GBPAUD, GBPNZD ............................................................................................................. Indicators: US DOLLAR DAILY chart EURGBP DAILY chart AUDNZD DAILY chart ............................................................................................................. 1) A couple of hours before London Open check direction of Indicators If current DOLLAR DAILY candle is UP, then we will be buying EUR or GBP If current EURGBP DAILY candle is UP, then...
Hi:

Did you backtest this system?
  • #10
  • Feb 28, 2017 3:29am Feb 28, 2017 3:29am
Trade #4

Dollar- DOWN
EURGBP- UP
AUDNZD- UP

Sell GBPAUD
Attached Image (click to enlarge)
Click to Enlarge Name: Dashboard28Feb17.png Size: 78 KB
  • #11
  • Feb 28, 2017 3:59am Feb 28, 2017 3:59am
Quoting aaven
{quote} Hello Zondervan, Thanks for laying out your strategy along with the rules... If you get a chance, please do share the reasoning for the strategy i.e. from a market behavior point of view... I feel it has something to do with Strength of the currencies/Market Sync. Also, May i ask, where can we get the US Dollar Daily chart? Thanks once again...
Hi Aaven,

Now EURAUD, EURNZD, GBPAUD and GBPNZD are not pairs you would normally scalp like I am attempting to do. It is just an idea I am trying out.
My strategy is based on the USD and the idea that a strong USD will often mean a weak NZD or AUD and a weak USD will often mean a strong NZD or AUD.

The US Dollar chart can act as a sort of indicator on whether the market is risk adverse or not. (The US Dollar chart was just on my MT4 demo). However I don't just blindly follow the US Dollar chart, I also have the percent gains or losses of most of the major currencies vs the USD down the right hand side of the chart. This allows me to take a closer look as to WHY the USD is strong or weak. For example if USD was strong but the JPY was also really strong, then the market would probably be strongly risk adverse. If USD is weak and NZD and AUD are strong then the market probably has an appetite for risk.

So my idea is:
Risk on - Sell EUR or GBP vs AUD or NZD
Risk off- Buy EUR or GBP vs AUD or NZD
  • #12
  • Feb 28, 2017 4:04am Feb 28, 2017 4:04am
Quoting Mr Breakout
{quote} Hi: Did you backtest this system?
Hi Mr Breakout, thanks for your interest. No I haven't back tested this idea. I am just going to forward test it on demo until I feel comfortable to try it live.
  • #13
  • Edited 2:43pm Feb 28, 2017 2:06pm | Edited 2:43pm
Quoting Zondervan
Sell GBPAUD {image}
Interesting thread, I like the logic behind your trading decisions, +76 pips in 5 days, keep up the good work
  • #14
  • Feb 28, 2017 10:37pm Feb 28, 2017 10:37pm
Quoting Zondervan
Trade #4 Dollar- DOWN EURGBP- UP AUDNZD- UP Sell GBPAUD {image}
SL Hit -22 pips

Trade direction was correct, just my SL was a little tight. I might look at entering trade at a better level and perhaps increasing R:R ratio
  • #15
  • Mar 1, 2017 12:26am Mar 1, 2017 12:26am
Trade #5

Dollar- UP
EURGBP- DOWN
AUDNZD- UP (however AUDNZD has exceeded Daily ATR so will perhaps retrace?)

Buy GBPAUD
Attached Image (click to enlarge)
Click to Enlarge Name: Dashboard1Mar17.png Size: 80 KB
  • #16
  • Mar 2, 2017 1:27am Mar 2, 2017 1:27am
Quoting Zondervan
Trade #5 Dollar- UP EURGBP- DOWN AUDNZD- UP (however AUDNZD has exceeded Daily ATR so will perhaps retrace?) Buy GBPAUD {image}
SL Hit -30 pips
  • #17
  • Mar 2, 2017 1:29am Mar 2, 2017 1:29am
Trade #6

Dollar- UP
EURGBP- DOWN
AUDNZD- DOWN

Buy GBPAUD (pending buy @ 1.6020)
Attached Image (click to enlarge)
Click to Enlarge Name: Dashboard2Mar17.png Size: 80 KB
  • #18
  • Mar 2, 2017 3:36am Mar 2, 2017 3:36am
Quoting Zondervan
Trade #6 Dollar- UP EURGBP- DOWN AUDNZD- DOWN Buy GBPAUD (pending buy @ 1.6020) {image}
Price has pushed through my pending target. So I will remove the trade. Direction was correct- a textbook trade according to my original rules of entering directly after pullback.
Attached Image (click to enlarge)
Click to Enlarge Name: Dashboard2Mar17-2.png Size: 82 KB
  • #19
  • Mar 3, 2017 3:06am Mar 3, 2017 3:06am
Trade #6

Dollar- UP
EURGBP- UP
AUDNZD- UP

Buy EURNZD (pending buy @ 1.4944)
Attached Image (click to enlarge)
Click to Enlarge Name: Dashboard3Mar17.png Size: 78 KB
  • #20
  • Mar 3, 2017 1:26pm Mar 3, 2017 1:26pm
Quoting Zondervan
Trade #6 Dollar- UP EURGBP- UP AUDNZD- UP Buy EURNZD (pending buy @ 1.4944) {image}
Again price pushed through my pending target. So I removed the trade. Direction was correct- another textbook trade according to my original rules of entering directly after pullback. That's two trades in a row. So when everything is lined up I don't need to try to get a better price, I can just enter on the open of the next candle. I think this system has potential, I just need more screen time to work out what the market is saying in different situations.
Attached Image (click to enlarge)
Click to Enlarge Name: Dashboard4Mar17.png Size: 74 KB
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