alexaherself
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These trades are neither time-consuming nor attention-demanding. Whether they’re profitable is another matter.
I’ve seen many similar ideas dismissed - and perhaps rightly - as “essentially random” and “invalid”, and am interested to discover whether the timing, here, might make this one any better.
For Cable and for the Euro, just before 3.00p.m., I’ll identify the high and the low between 1.00p.m. and 3.00p.m. (UK time: the first half of the daily period during which both London and New York are open), and enter (usually) limit orders at 3.00p.m., good for two hours only.
Cable - two OCO limit orders: long entry 2.5 pips above the 1.00-3.00 high, and short entry 2.5 pips below the low, each with a profit target of 21 pips and trailing stop of 21 pips. For the Euro (EUR/USD), exactly the same but TP 18 pips and TS 18 pips.
There’s a vague similarity between this and something called the “Big Ben Method”, or something similar, I think? I believe that was/is based on London early morning trading, and that it may be based on so-called “overnight support/resistance levels“? My own suspicion is that overnight ranges/levels don’t signify nearly as much as ranges when trading’s active on both sides of the Atlantic?
I’m hoping that the price movements that trigger the opening of trades with this system will, overall, be something more than just random volatility.
For the moment, I’m planning to keep it as simple as that. Possible improvements to think about in future might include …
1. Not entering a trade if there seems to be a significant chance of its quickly hitting resistance, on the basis of recent levels of support/resistance
2. Filtering the trades according to underlying trend (however defined)
3. Filtering trades according to what proportion of the ATR is “already accounted for”
4. Entering on a pullback rather than on the initial breakout (conceivably better for the Euro than for Cable? Not convinced about this)
Comments/suggestions/observations are welcome. With no intention of limiting the conversation I’d like to mention a few little points in advance …
(i) I’d be interested to hear any perspectives on TP’s and SL’s (my normal trading doesn’t use either of the ideas of TP’s and SL’s employed here), bearing in mind that my specific, perhaps-too-ambitious, perhaps-inappropriate objective is for non-time-consuming, non-attention-demanding trading. I always instinctively feel that entries are “relatively easy” and it’s perhaps exits which primarily determine one’s fate and fortune
(ii) for myself, I have no great interest in any suggested improvements involving “indicators”
(iii) I may not be able to post every day, and will often post after the trades (the method is of course relatively objective and the trades easily enough retrospectively verifiable - I‘ll take my figures for this thread from Oanda charts)
(iv) There may be a decision to be made about whether it’s worth trying anything like this, at all, on Friday afternoons?
(v) It’s unclear to me whether this idea, if it works at all, is truly based on support/resistance rather than on trend
(vi) It might occasionally be necessary - as the parameters are currently defined - to use market, rather than limit, orders (and sometimes even to miss a pip or two, as well)?
I’ve seen many similar ideas dismissed - and perhaps rightly - as “essentially random” and “invalid”, and am interested to discover whether the timing, here, might make this one any better.
For Cable and for the Euro, just before 3.00p.m., I’ll identify the high and the low between 1.00p.m. and 3.00p.m. (UK time: the first half of the daily period during which both London and New York are open), and enter (usually) limit orders at 3.00p.m., good for two hours only.
Cable - two OCO limit orders: long entry 2.5 pips above the 1.00-3.00 high, and short entry 2.5 pips below the low, each with a profit target of 21 pips and trailing stop of 21 pips. For the Euro (EUR/USD), exactly the same but TP 18 pips and TS 18 pips.
There’s a vague similarity between this and something called the “Big Ben Method”, or something similar, I think? I believe that was/is based on London early morning trading, and that it may be based on so-called “overnight support/resistance levels“? My own suspicion is that overnight ranges/levels don’t signify nearly as much as ranges when trading’s active on both sides of the Atlantic?
I’m hoping that the price movements that trigger the opening of trades with this system will, overall, be something more than just random volatility.
For the moment, I’m planning to keep it as simple as that. Possible improvements to think about in future might include …
1. Not entering a trade if there seems to be a significant chance of its quickly hitting resistance, on the basis of recent levels of support/resistance
2. Filtering the trades according to underlying trend (however defined)
3. Filtering trades according to what proportion of the ATR is “already accounted for”
4. Entering on a pullback rather than on the initial breakout (conceivably better for the Euro than for Cable? Not convinced about this)
Comments/suggestions/observations are welcome. With no intention of limiting the conversation I’d like to mention a few little points in advance …
(i) I’d be interested to hear any perspectives on TP’s and SL’s (my normal trading doesn’t use either of the ideas of TP’s and SL’s employed here), bearing in mind that my specific, perhaps-too-ambitious, perhaps-inappropriate objective is for non-time-consuming, non-attention-demanding trading. I always instinctively feel that entries are “relatively easy” and it’s perhaps exits which primarily determine one’s fate and fortune
(ii) for myself, I have no great interest in any suggested improvements involving “indicators”
(iii) I may not be able to post every day, and will often post after the trades (the method is of course relatively objective and the trades easily enough retrospectively verifiable - I‘ll take my figures for this thread from Oanda charts)
(iv) There may be a decision to be made about whether it’s worth trying anything like this, at all, on Friday afternoons?
(v) It’s unclear to me whether this idea, if it works at all, is truly based on support/resistance rather than on trend
(vi) It might occasionally be necessary - as the parameters are currently defined - to use market, rather than limit, orders (and sometimes even to miss a pip or two, as well)?
