Daily Range Strategy - ForexFactory #21317
I'd like to introduce a method that I saw on another board, but for some reason it was discarded and hasn't been used in a while. I think it has great potential and if it catches the attention of EA programmers, I hope they can develop a reliable EA because it is perfect for this type of trading.
This is called a dynamic daily range strategy.
First, you attach the following indicator to the daily chart, which will give you the average daily range of the attached currency pair.
Then you just divide by 50%, for example, assuming EURUSD's average daily range is 100, your level is 50.
You place your first trade 50 pips from the day's high or low. So, if the price falls 30 pips, you will reverse 50 pips from the low, and vice versa if the price rises first. Obviously, if the price went straight up from the opening price, you would enter the market 50 pips from the opening price
You only reverse twice a day and let the order continue to run until the close at 1900 GMT.
I can't backtest so can't give you historical results, I've done it manually on a lot of pairs and it works great. If I wasn't smart enough, using a trailing stop might work better!
Please give it a try and let me know if you can make an EA to improve it! Remember, most of the profits will come from really strong trending days around 3 or 4 days a month!
This is called a dynamic daily range strategy.
First, you attach the following indicator to the daily chart, which will give you the average daily range of the attached currency pair.
Then you just divide by 50%, for example, assuming EURUSD's average daily range is 100, your level is 50.
You place your first trade 50 pips from the day's high or low. So, if the price falls 30 pips, you will reverse 50 pips from the low, and vice versa if the price rises first. Obviously, if the price went straight up from the opening price, you would enter the market 50 pips from the opening price
You only reverse twice a day and let the order continue to run until the close at 1900 GMT.
I can't backtest so can't give you historical results, I've done it manually on a lot of pairs and it works great. If I wasn't smart enough, using a trailing stop might work better!
Please give it a try and let me know if you can make an EA to improve it! Remember, most of the profits will come from really strong trending days around 3 or 4 days a month!
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