CSS London Hybrid

[pips400]

Ok, here we go, I'm taking a risk here and you're welcome to delete the post but thought I'd throw it out there anyway. Like everyone else I've been finding it difficult to trade classic 10.X because the market conditions have changed into a much more sideways movement, making it really hard to get in and out of a trade because by the time you're in, momentum will soon turn things the opposite direction, and there's already been some good suggestions coming through on a "summer variation" etc. What you do notice is that the markets are still moving and there's plenty of pips to be had with the right strategy, so I've been working on a few different ideas, and the one I'm excited about at the moment, I'll call the CSS London Hybrid and no it's not a London breakout strategy, and it doesn't take anything away from 10.X but hopefully will expand it.

The Theory
CSS Info page 4H is a very powerful indicator for giving short term bias.
Market behaviour/sideways, means to get in and out of a trade quickly
Between London open and NY open is often when price moves in the same direction as the CSS bias
So we are trading with the short term bias after a retrace during the first few hours on the London session.

Setup
CSS Info H4,
Stochastic 5 3 3 Weighted, Close, Close
5 simple MA

Process
1. Trading only between London open and NY Open
2. Go to CSS info page and calculate the short/long bias for each currency pair. I wrote a simple spreadsheet in Excel and posted it on the forum called CSS Assistant which does a lot of the work for you.

For a long
Wait for stochastic to drop below 20 and 5 SMA moving down, this is confirmation of a retrace.
Then when 5 SMA starts to angle upwards, open a long trade with SL 2 pips below last low of previous 5 15min candles, TP is same number of pips, in other words 1:1 risk reward. If there is another retrace before NY open the process can be repeated. At NY close any trade still open.

For a short
Opposite of long

For example on 16 July 2013 the CSS H4 on the Info page gave the following
Long bias: AUDCAD, AUDCHF, AUDJPY, NZDCAD, NZDCHF, NZDJPY, USDCAD, USDCHF, USDJPY
Short bias: CADJPY, CHFJPY, EURAUD, EURJPY, EURNZD, EURUSD, GBPAUD, GBPJPY, GBPNZD, GBPUSD
Note: Determining bias can be difficult and also subjective, so it may take time to develop a real "feel" for direction

Trading the above would appear to have return approx net gain of 14 x invested risk.
This is on paper and needs to be forward tested which I'll do over the next couple of days. Yes I realise it's easy to pluck figures and strategies out of the air, but at least this one seems to warrant further analysis, I'll get back to you, with how it does forward testing.

audcadim15-scalp.jpg

[phil_trade]

Hi

Ok, here we go, I'm taking a risk here and you're welcome to delete the post

what a curious idea ? it's a cool place here man And all trading ideas are welcome, even the craziest one ! and yours seem a "standard one"

[McNish]

Css H4 with M15 entry in between market open times and looking for a scalper. Not bad really. Expand the market base a bit imo. Another 2 to 4 hrs post NY open, all days (we know what friday can do sometimes). Test it out for sure. Cheers,

[pips400]

Thanks Guys, I'll report back shortly with some live results.

[SteveHopwood]

Adding my weight here in the hope it will encourage others to take some notice and chip in. Interesting ideas, pips400.

[Staedtler]

Notice taken.

[Mike]

Thanks Pips400 for your nice CSS-Assistant. I have added some features, hope you do not mind. Best Mike

[pips400]

Thanks Pips400 for your nice CSS-Assistant. I have added some features, hope you do not mind. Best Mike

No problem Mike, we are here to help one another.

[Jemook]

Anyone get the chance to trade pips400's strategy in the London open today?

J

[pips400]

So after first trading day, it's been really useful to start to get a feel for how this thing is going to go. For what it's worth there was a 3.5% loss today, but it's much tooooo early to take note of any profits or losses until things are been refined and forward tested over the next few weeks.

Trading Journal
1. Used 1% risk to SL for simplicity, this aspect not yet under test, but remain open to lower risk per position, or use fixed lots e.g. 0.01 per $1000 balance etc.

2. Take note of McNish comments about trading into the NY session also. I stuck with the initial rules today, and closed everything out at NY open. Had I have kept positions open, murphy's law many of the positions which had been stalling all morning suddenly took off in the right direction, so would have closed in significant profit. Will amend trading hours to include all of London Session and compare results.

3. One of the difficulties today was a little uncertainty over CSS info bias, may look to DBMx MACD CSS for trade bias also.

4. Some entries were taken on the change in 5 SMA direction before candle close, this proved costly because price can sway the MA up or down in one candle. So some trades were opened during. Better to wait for candle close.

5. I had two platforms open to test two variants. One was a simple tp at 1% profit, the other was let all trades run until NY Open, then close basket. The better option on day 1 was to let all trades run until NY open. Going forward will try take profit when 5MA reverses.

Trade Bias at 7am GMT
Longs - AUDCAD, AUDCHF, AUDUSD,
Shorts - CADJPY, CHFJPY, EURAUD, EURCAD, EURCHF, EURJPY, GBPAUD, GBPCAD, GBPCHF, GBPJPY, NZDCAD, NZDCHF, NZDJPY, USDCAD, USDCHF, USDJPY.

Summary
Too early to tell. Key areas are trade bias, avoiding premature entry, and keeping positions open longer, and test into the NY session. Will make the changes and trade again tomorrow with next report.