Daily range strategy | Foreign exchange EA download - MT4/MT5 resources

I think I've found a pretty good strategy and was wondering if I could get some ideas on this…. Do you know someone who plays devil's advocate J.

I was sitting down last night thinking about the market's daily range and started wondering if there was some relationship between when the market started at 00:00 AM GMT and when it ended. For example, if the market goes up 50 points in one direction, how often does it retrace and continue to reach the 100-150 point daily range.

So I pulled up some daily data on the cable market and started back testing. I have now backtested to May 2006 and will continue to do so, but this is my rule.

If the market moves 50 pips in either direction from prices at midnight GMT. Then enter the trade with a 30 pip limit order and a 30 pip stop loss.

Cable has given me 1500 points so far since the beginning of May. This looks fine to me, but am I missing something that is fundamentally or technically wrong with this approach?