FOREX inactive for hours
Forex Strategy for inactive hours - Sedona
algorithm strategy Forex Sedona:
This forex strategy is based on the ideas described in the book by Boris Shlesberga "Technical analysis in foreign exchange marketsť. The strategy we will use the benefits of trade, which give us the inactive trading hours forex .
consider the essence of forex strategy "Sedora" for example, the currency pair GBPJPY. The biggest volume of trades on the cross rate recorded during the Asian and London trading sessions. At the time, as after the close of the London session, the afternoon trading in New York, large movements of this pair, in general, there is no . In addition, due to the fact that financial markets in London and Tokyo closed, important economic news , which could have an impact on the yen, pound or not.
Trading forex strategy set "Sedora" quite simple:
The 15-minute chart, we set the indicator EMA with a period of 62 (Exponential Moving Average).
Just install and indicator RSI (9).
In addition, we draw the graph rectangle, which tells us the beginning and end of the session for the currency pair . That is, if we are trading on the currency pair GBPJPY, the beginning of our session will be opening of the trading session in Asia, and the end of the rectangle to coincide with the end of the trading session in London (ie our time period of 20 00 ET - 12:00 ET - the next trading day ).
During the session, we should fix maximum and minimum , then we need to know, was a forex indicator RSI during this maximum or minimum in the overbought or oversold . If the forex was in extreme areas, therefore we must set pending orders.
In particular, we are considering for example, the RSI was first in the overbought zone, then in oversold territory, and we can open a trading position to buy because the price is at the bottom of our-drawn rectangle. We can enter the market at any point, which is located in the bottom fifth (ie the bottom 20%) of our rectangle. In our example, the rectangle is restricted trading levels of 239.91 and 236.81 (210 points), we can enter the market at any price that is below 237.3. Safety stop-loss set at 20% below the bottom (236.39), and the first profit target at the MA EMA62. Then we can either take profits or stop slide -loss to breakeven and wait until the price comes on the chart to the other side of our "box". If the period of stay in a rectangle, the RSI did not go into extreme zones (overbought or oversold), we should not take any action to buy or sell a currency pair.
Trades are opened only in the range of inactive hours . For our chosen pair - a pair is the interval between 12:00 ET (close of trading in London) and 20:00 ET (the opening of trading in Tokyo).
Out of the bargain, according to the forex strategy Sedona:
All open trading positions must be closed before the start of active trading hours .
According to the forex strategy, I use various techniques to enter the market. In case of opening up a trading position, instead of one input to the risk of 2% of sales of the deposit, I put up three limit orders at the bottom of the rectangle and at 10 and 20% from the bottom of a risk with 0.5% for each warrant . In this case, if the trigger stop-loss, I will lose 1.5% of the deposit, and if the deal goes open against me, and then unfold into tradable my direction, I still have two thirds of trading positions at prices that are best from the first closed .
suggest that more carefully analyze the trade deal, which was written above:
And so according to the chosen risk management, the 1st position was opened trading at a price of 237.02, then the price went to 236.82 - the rectangle to the bottom, after which she still has unfolded, and the last position was opened at a price of 237.23. Then the price went to target at 237.77. We can fix the two trading positions at this level and move the stop loss for the third trading position to break even. As you can see, before the opening session torgovovoy in Tokyo, the price reached the level of 238.40 before the opening occurred at the rate of 237.90. If we closed all three trading positions at a price of 237.77, closed our average profit in points would have 75 points, or $ 205 for a deposit of 10K. The average risk for this transaction amounted to only 63 points or $ 150. Compare this with a profit of 54 pips (128.57 dollars) and the risk of 84 pips ($ 200).
The author of this forex strategy states that also trades on the currency pair GBPUSD. Rectangle for it is building between 3:00 and 17:00 ET ET. Trade agreements concluded between 17:00 ET and 03:00 ET the next trading day.