Hey, friends, it’s John Foster. I have described pros and cons and examples of scalping and day-trading strategies. Today here go non-indicator strategies! Most professionals consider them more profitable and accurate than those with indicators, because the latter ones can be late with signals. Some indicators let enter when the trend is already half-done or almost done. I can argue with that, because there are some precise indicators, giving 8 or 9 right signals out of 10 – they were in “Best Scalping Strategies”. Nevertheless, non-indicator trading forex strategies are not worse than those with them, and even are easier for novices sometimes. Today we’re to look into the “The Start” trading strategy.
This strategy is one of non-indicator and scalping ones, and we don’t need any additional tools and figures. The essence is: to define the direction of the London Session trading and gain with it. We are working for 2.5 hours.
The main feature is that we enter the market every day, but only once. Other strategies can give several signals a day, and can give none of them. Trading with “The Start” forex strategy, you will know for sure, when to open and to close your order. It will perfectly suit prudent traders planning their days.
This strategy is the one not changed by me. From the very beginning, this forex strategy was well-done and profitable.
Step 1. We will trade during the London Session, so we need to wait for it. Timeframe used is M30.
Step 3. Once the first candlestick closes, place 2 pending orders. The first one calls, like Buy Stop – it should be set at the maximum of the just-closed stick. The second one – putting as a Sell Stop, it is at the minimum of that stick. So, we get 2 pending positions with opposite directions. If the price goes up, the first order opens, down – there opens the second one.
Step 4. When one of two orders reacts, place the StopLoss for it at the level of the second order. For example, if the price goes down, the putting order works. The StopLoss for it will be exactly at the maximum of the first candlestick, closed at 5:30 GMT, where the average is built.
Do not delete another order! Let it stand. If the signal is false and the price goes back, with the Stop of the opened position it will strike the second order letting us gain, or leave to the breakeven. With this feature, you can’t suffer losses – the worst you can get is the 0-profit.
Step 5. We don’t set the TakeProfit, entering the market at 11:00 GMT. This time, the session is almost over.
Why do we act this way waiting 30 minutes? Actually, 30 minutes later the session starts, most trader begin to trade actively. After half-hour and a short-break, the great work begins, when traders estimate the trend of the London Session. It’s so because it’s unclear what to do in the first half-hour of the session.
Why do we close the position at 8:00 AM GMT, when the London Session is still on? Most Englishmen eat at this time, and the US traders join and it’s tough to define anything then.
So, the essence of “The Start” forex strategy is to estimate the most London traders’ choice, then enter at this direction and earn with a slight 20-30 points movement. If you use pending orders correctly, there are no risks.
AsI’vementioned, this strategy weren’t changed by me. Actually, this strategy is profitable itself. I just want to describe several features to let you gain more:
I was testing this strategy for 2 weeks. During that, I entered the market for 10 times. 9/10 days were profitable, and only one gave losses because I haven’t noticed the news about UK. Something happened for 2 times: after I finished setting my pending orders, the price went up, touched my buying order, but then turned and came down, breaking the StopLoss. In both cases, I gained for saving another selling-order.
I’ve succeed in earning 27% of my original deposit, with low stress, because I was spending only a couple of hours at the terminal per day.
The average profitability of this forex strategy is 50-60% per month. Its accuracy is 8/10 right signals.
I wish you good profits and big luck!
Best Regards, John Foster
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