Here's a brief idea of what I'm trying to achieve.
See spread sheet. Page 1 has trading session times. Page 2 has a basic outline of what I'm describing below
You trade the various sessions. The settings for opening times on the EA is critical. Thanks That Trader Guy for this idea.
Session 1 open Tokyo 23h45--07h30 not Sydney except for Jpy or Aus pairs
Session 2 open 07h45--12h30--London--not Frankfurt
Session 3 12h45-18h00 New York
Have a look at your charts--you'll see that most opening sessions create a price spike. This is what you're hoping to capitalise on. If this doesn't happen then there's usually a major news announcement following the opening. Be aware of these--thats all.
The yellow highlight on the spread sheet is when various sessions converge--i.e. one session is opening and another session has a couple of hours before close. The London--New York overlap tends to be the busiest.
Two strategies are overlaid to create Poolmentum
This is what I asked Mantkinth to code (Thanks Mate) and is what we're busy testing.
First is the Retracement Strategy (RS)-- Long trade e.g. below. I use these settings for EU. With pairs like GJ, EA the gaps will be bigger.
Level 1 Sell Limit (SL) OR 15 pips (from PL) Lot .02, TP% 100%. So it must retrace to PL to take 15 pips profit
Level 2 (SL) OR 30 pips (from PL) Lot .02, TP 50%. This is how I've been testing the Ver 5ab so far.
Level 3 (SL) OR 60 pips (from PL) Lot .03, TP 50%.
Level 4 (SL) OR 100 pips (from PL) Lot. 04 TP 50%
Level 5 (SL) OR 150 pips (from PL) Lot. 06 TP 50%
2 options. 1) No more levels after level 5. Here is where we need a recovery plan--or 2) we can continue to level 7 as the strat below will hedge more effectively than previously
Second is the Momentum Strategy (MS)
All settings adjustable. All trades below take 1 lot partial profit when TP hit and 1 lot cont. to trail with Chandelier Trailing stop. I've attached the Chandelier Indicator but it is coded into the EA--its good to have it on the chart as a visual of how the SL is trailing price.
1st Buy stop 15 pips Lot .02. SL at PL (15 pips), TP next (RS level) 15 pips. Worst case scenario. If trade turns and hits SL it should be less than 15 pips because Chandelier would have moved it up slightly. So because RS trade takes full 15 pips profit you come out slightly ahead. If not, break even's the worst that can happen (Give or take some spread)
2nd Buy Stop 30 pips Lot .02 SL previous MS level. TP 1 lot next MS level--chand trail remaining lot
3rd Buy Stop 45 pips. Lot .02 SL at 2nd MS level. TP 1 lot next MS level--chandl trail remaining lot
4th Buy Stop 60 pips. Lot .02 SL at 3rd MS level. TP 1 lot at RS level 3 --chand trail remaining lot
No more levels. Chandelier to start at Kv 3. When price hits 4th Buy Stop (MS) level tighten the Chandelier by .5 (to Kv 2.5)
Here's a less technical description of the overall strategy.
Imagine an Archer aims a bow and arrow into the sky.
You have a fair idea when he will release the arrow (session time) and a fairly good idea of how far the arrow will go (depends on the currency pair)
As he releases the arrow the most velocity (volume) is at the point nearest to the bow (session opening) and that's where you want your buy stops.
But you also want to take small bites on the way up in case a strong wind knocks the arrow back down before it reaches the top of its arc (Partial closes) but if that wind is not there you want to take advantage of the arrows full flight to the top of its arc (Chandelier trail).
This is the Momentum Strategy
You have an idea of where the arrow will run out of speed (momentum) reach the top of its arc and plunge back to earth and that's where you want your Sell limit. (Retracement Strategy).
On a windless day the arrow should turn and head straight back down but unfortunately this Archer operates in a very windy environment.
As the arrow heads back down a strong wind from below picks the arrow up and sends it higher but that's ok as more Sell limit levels (RS) are placed which causes the TP to stay near the arrow for when the wind drops again.
At the same time you still have your partial buy stops open and you've taken some (partial) profits already.
When the wind drops the Chandelier will take care of the arrow (MS partial opens) and TP will be filled (RS)
Even if the arrow slips and barely gets up into the sky--you've got that covered.
So hopefully whether the wind blows, gusts or stays away--as Mankinth says--its all good.
Let's see.
