Advanced system #14 (Simple trading with Daily range)
Submitted by User on March 6, 2009 – 07:22.
Submitted by Stuart (BE)
This method is basically to do with what a pair moved like the previous 24 hour period.
In this, I will use the GBPJPY, but one could use it on any pair.
You choose your own 24 hour period move – here as an example I will be using 21:00 to 21:00 GMT+1 (my local time).
Mark the High, Low and Close for selected 24 hours.
For example, the GBPJPY for the last 24 hours was: H138.67 L136.00 and C138.13
Now total movement was (high-low) 267 pips.
You set your Buy and Sell orders 25% of the 267 total move away from the Close price. Therefore, 25% of 267 pips is 67 pips, thus your orders would be:
BUY at 138.80 (Close + 67 pips)
SELL at 137.46 (Close – 67 pips)
Set your TP also only to 25% of the previous days move – in this case also 67 pips. In theory, if the chosen pair then move only 50% of the previous days total move, you profit.
Set your SL levels 10 pips away from the opposite order.
I have attached a Spread Sheet with all the formulas. All you need do is put in the High, low and close, and it will give you all the figures. your buy, sell, take profit and stop loss.
Depending on what time zone you are in, I would suggest setting your orders before “your” market opens. in my case it would be the London Market at 08:00 GMT.
Thanks a million, and any feed back from the pro’s would be appreciated.
Submitted by User on March 8, 2009 – 04:18.
Submitted by synalon on March 9, 2009 – 03:03.
Thanks for submitting this interesting system Stuart. Since I can’t watch the markets consistently, I’m looking for a system that you can basically set and forget. This might work out well in that regard. I plan to demo it to see what results I achieve. I did want to point out something that I noticed when I downloaded your accompanying spread sheet. The formulas that generate both the long entry and short entry are correct only on the example that you included (first line of cells). On the cells that follow, there is a different formula that doesn’t match the methodology that you listed above. I noticed the discrepancy when some of my manual calculations didn’t match the values being generated by the spread sheet. Just an oversight, I’m sure, but I thought I’d point it out for those who might not catch it. Again, thanks for the system.
Submitted by Wayne on March 10, 2009 – 23:01.
This can add much help in not setting on the computor all the time. Did I get this right. Your system is to set long and short orders at the same time? Please hurry with the answer. I’m anxious for a break with happy results.
I enjoy this site
and Thank you Stuart
Submitted by Stuart on March 11, 2009 – 11:21.
Hi Wayne and Synalon,
To answer your question Wayne. yes, you set both orders at the same time. Hopefully one will trigger and exit soon after the market opens.
And Synalon, I did notice the error in the formula. I have uploaded a new spread sheet. Also, bear in mind that you can easily copy the formulae for new pairs – like the 2 decimal and 4 decimal point pairs.
Submitted by Marie on March 11, 2009 – 13:15.
Thanks Stuart for your system.
I think the stop losses should be set to opposite order + 10 for shorts, and opposite
order – 10 for longs. Have you considered filtering the trades by the long term trend?
Submitted by Stuart on March 12, 2009 – 02:45.
Thanks for your comment. I do have the stop Losses set at +10 and -10 respectively? I am currently also testing a trend indicator in order to only set one order, depending on the general trend. Also the “center of Gravity line” seems to indicate the direction. (http://forex-strategies-revealed.com/scalping/center-of-gravity )
I will post the indicators here as soon as I am happy with the results. I think it would be a lot safer to only set orders in one direction. but need to filter which one.
Submitted by Stuart on March 12, 2009 – 04:21.
I have made a template with the help of some indicators to determine which way to set ones order for the day.
In the template I have the ‘wellxAMA’ indicator, as well as the ‘Center of Gravity’ indicator. How you would determine which trade to place is at the given time, look at the general direction of the Gravity line, and also at the ‘wellxAMA’ dot, or last dot.
If the wellxAMA dot or last dot is yellow – ONLY PLACE A SHORT ORDER.
If the wellxAMA dot is blue – ONLY PLACE A LONG ORDER.
I have noticed it works best, for me, only trading the GBP pairs, and setting orders just before the London market opens.
But one can choose any pair, and also any 24 hour period.
I have attached the spread sheet again, but with the formulae for both a 4 decimal and 2 decimal place pair.
Thanks, and happy trading.