The basis of this system is very simple and has proven to be profitable, though I am adjusting the money management/profit targets.
Overview
This is a pure "set and forget" system where trades are placed at the same time everyday. The option is also there for those inclined to monitor their positions to adjust stop levels as profit targets are reached. Please note that there is currently an Expert Advisor being created that will automate the trading of this strategy, thus keeping to the set and forget objective. Please click on the paperclip at the top right hand side of the screen to find the current versions.
By setting multiple profit targets we are exercising money management, while aiming for 95 pips profit from a 50 pips move in price. We will simply be placing orders 5 pips above the previous days HIGH and 5 pips below the previous days LOW.(Actually, it's more like the previous 17 hrs at 5 pm EST.). Use a 30 pips stop loss for all orders. Orders are placed on Monday, Tuesday, Wednesday, Thursday and Friday.
Execution
1.) At 5pm EST open the 1hr chart (2hrs b4 start of the Asian session) of USDJPY. For those whose brokers spreads are still wide at 5pm EST on Sunday (which is 7am my time on a Monday here in Brisbane), in order to avoid the wide spreads you may need to wait until they reduce to normal before placing the orders for the day. I typically have to wait until around 8pm EST.
2.) Use the high and low of the previous 17hrs. For Mondays orders go back as far as 00:00 EST on Friday for high and low.
3.) Open a total of 6 PENDING orders (for each pair) including 3 BUY STOPS and 3 SELL STOPS that expire within 24hrs (I use 18hrs) as follows:
Buy/Long Orders:
1 - Entry = HIGH+5pips, Take Profit=15pips, S/L=30pips
2 - Entry = HIGH+5pips, Take Profit=30pips, S/L=30pips
3 - Entry = HIGH+5pips, Take Profit=50pips, S/L=30pips
Sell/Short Orders:
1 - Entry = LOW-5pips, Take Profit=15pips, S/L=30pips
2 - Entry = LOW-5pips, Take Profit=30pips, S/L=30pips
3 - Entry = LOW-5pips, Take Profit=50pips, S/L=30pips
That's it!
Once you have placed your orders you are free to go and do something else with your day as this strategy does not require you to be monitoring the trades. Though, as already mentioned, to maximise results you may choose to adjust stop levels when profit targets are reached.
There can be 4 possible outcomes after either the long or short trades are triggered:
1.) All 3 profit targets are reached for a total of +95pips.
2.) The first 2 profit targets are reached (+45pips) and the remaining lot is stopped out (-30pips) leaving a total of +15pips.
3.) The first profit target is reached (+15pips) and the two remaining lots are stopped out for a total of -45pips.
4.) All 3 lots are stopped out for a total of -90pips.
Additional to this is the variable outcomes of when both the long and short trades are triggered.
Also note that for those so inclined to monitor the trades, stop levels may be adjusted on remaining lot/s to protect already achieved profits. Trailing stops may also be used at your discretion.
Please note that as a general rule of thumb you should not risk any more than 3% of your trading account on any one trade. Therefore, with the DAILY95PIPS strategy the order size will need to be divided between the long and short orders. The total potential loss on the long orders (90pips) will therefore add up to 3% of your trading account. Alternatively, you could risk 3% of your trading capital on EACH order, totalling 9% of your trading capital being risked for the long trades. The same applies to the short orders.
By: mikelath
www.forexfactory.com
Overview
This is a pure "set and forget" system where trades are placed at the same time everyday. The option is also there for those inclined to monitor their positions to adjust stop levels as profit targets are reached. Please note that there is currently an Expert Advisor being created that will automate the trading of this strategy, thus keeping to the set and forget objective. Please click on the paperclip at the top right hand side of the screen to find the current versions.
By setting multiple profit targets we are exercising money management, while aiming for 95 pips profit from a 50 pips move in price. We will simply be placing orders 5 pips above the previous days HIGH and 5 pips below the previous days LOW.(Actually, it's more like the previous 17 hrs at 5 pm EST.). Use a 30 pips stop loss for all orders. Orders are placed on Monday, Tuesday, Wednesday, Thursday and Friday.
Execution
1.) At 5pm EST open the 1hr chart (2hrs b4 start of the Asian session) of USDJPY. For those whose brokers spreads are still wide at 5pm EST on Sunday (which is 7am my time on a Monday here in Brisbane), in order to avoid the wide spreads you may need to wait until they reduce to normal before placing the orders for the day. I typically have to wait until around 8pm EST.
2.) Use the high and low of the previous 17hrs. For Mondays orders go back as far as 00:00 EST on Friday for high and low.
3.) Open a total of 6 PENDING orders (for each pair) including 3 BUY STOPS and 3 SELL STOPS that expire within 24hrs (I use 18hrs) as follows:
Buy/Long Orders:
1 - Entry = HIGH+5pips, Take Profit=15pips, S/L=30pips
2 - Entry = HIGH+5pips, Take Profit=30pips, S/L=30pips
3 - Entry = HIGH+5pips, Take Profit=50pips, S/L=30pips
Sell/Short Orders:
1 - Entry = LOW-5pips, Take Profit=15pips, S/L=30pips
2 - Entry = LOW-5pips, Take Profit=30pips, S/L=30pips
3 - Entry = LOW-5pips, Take Profit=50pips, S/L=30pips
That's it!
Once you have placed your orders you are free to go and do something else with your day as this strategy does not require you to be monitoring the trades. Though, as already mentioned, to maximise results you may choose to adjust stop levels when profit targets are reached.
There can be 4 possible outcomes after either the long or short trades are triggered:
1.) All 3 profit targets are reached for a total of +95pips.
2.) The first 2 profit targets are reached (+45pips) and the remaining lot is stopped out (-30pips) leaving a total of +15pips.
3.) The first profit target is reached (+15pips) and the two remaining lots are stopped out for a total of -45pips.
4.) All 3 lots are stopped out for a total of -90pips.
Additional to this is the variable outcomes of when both the long and short trades are triggered.
Also note that for those so inclined to monitor the trades, stop levels may be adjusted on remaining lot/s to protect already achieved profits. Trailing stops may also be used at your discretion.
Please note that as a general rule of thumb you should not risk any more than 3% of your trading account on any one trade. Therefore, with the DAILY95PIPS strategy the order size will need to be divided between the long and short orders. The total potential loss on the long orders (90pips) will therefore add up to 3% of your trading account. Alternatively, you could risk 3% of your trading capital on EACH order, totalling 9% of your trading capital being risked for the long trades. The same applies to the short orders.
By: mikelath
www.forexfactory.com
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