System Messages

This forum is for members of the Apiary Investment Fund. To learn more about how to get involved,
sign up now for a 14 day free trial or fill out the form below and preview the training right now!

Place And Watch Strategy

 

Place And Watch Strategy

This strategy is very simple and works off the London open. I used it for a while but did not like it as "set and forget" does not really suit me.  However it did have positive results.

1. Before the Open mark the High and the Low from midnight to 7am and mark on your 1 hour chart.

2. using either 1 hour or 2 hour time frame, when a candle closes outside the high or the low, take a long or short trade accordingly, i.e closes above the Hi  - then go long etc.

3. use a 2:1 target to stop loss, and what we used most commonly was 60 target 30 stop.  A 2:1 risk reward means of course far less than 50% winners to breakeven.

4. Use on GBPUSD mainly but can also use on Indecis and on other major currency pairs like the EURUSD.

Set and forget, or you could move the stop up to half way through the Hi/Lo area. or trail the stop etc,since when it goes it usually just winds its way there. Also there was another related strategy that if the price moved to the Hi (or Lo) and reversed it usually went to the other end of the of the box to head off in that direction, but I did not try that often, just taking it on signals of a different system.

What did i like about it? There was about 40%+ winners and so it made a profit and the account built up nicely with a string of winners.  What did I hate? 6 losses in a row was the biggest drawdown which is something I dont like, and made the build up of the account more eratic. And, added to setting the trade and then just checking up every hour or at end of the day for the result did not really suit me.

Account management: We started at 50p a point and only increased this when the account doubled. We went back to 50p ( or the last level) reached if had a 25% drawdown. Levels were 50p: 100p; 150p, 200p and stay there.

If it sounds interestng try it out on demo (an MT4 platform usually allows you to get more accurate Hi and Lo data and lines to use, but accuracy not really that important) and play around with the stop and targets that fall outof your back testing and work with your forward testing. And play around with the $ per point progressions for what helps you protect your account and grow it

Thu, 08/08/2019 - 12:30pm
 
j.berry490

I tried a similar strategy called "The London Daybreak". It works great roughly Tues, Wed, and Thurs. My Dislikes are
1) I Live in Texas (Central Time zone) and the London Open is at 2am my time. Did it for about 2 months.
2) I found that if the price action moves fast before the open, that when the London session does open, it skyrockets in the opposite
direction. You are setting buy stops and sell stops on all 6 GBP currencies. managing all of them for this skyrocket can cost you.
If I could get over these hurdles, This would be a great strategy to get 300 or 400 pips per day (Tues, Wed, and Thurs)