Range Strategy For GBP/JPY Currency Pair Only

Range Strategy For GBP/JPY Currency Pair Only

21 November 2017, 14:33
Dragan Drenjanin
0
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This strategy is applicable only to the currency pair GBP/JPY.

This strategy is based on trading at night time by way of placing pending orders. Therefore, this strategy does not take too much time of a trader. You will need to know closing time of the American session and opening time of the Asian session. Use the time indicated in your trading terminal. In the example below, the terminal shows server time of the Company: GTM+2. In this case   closing time of the American session will be at 23:00, opening time of the Asian session is 2:00 terminal time.

In order to place an order we need to construct a rectangle in which horizontal lines will be the highs and lows of the limited time period, while 23:00 and 02:00 will be shown as the vertical lines.

As soon as the rectangle is formed, it is necessary to place a pending order Sell Stop 2 points below the lows and a pending order Buy Stop 2 points above the highs. Stop loss of each order will be at the distance of the flat, which is the opening price of the opposite pending order. Take profit should be set at the distance two times bigger than the distance to the stop-loss. Thus, we will comply with the rules of money management.

After placing the orders and getting profit, it is preferable to place at least 10-15 points of stop-loss in the breakeven zone.

After activation of one of the orders, the second order shall be also removed.

In case the range of the flat is over 70 points then, it is better not to trade on this day; it is also recommended to refrain from trading if neither of the orders has been activated within 4 hours after placing the orders.

If a transaction has not been closed with the help of stop-loss or take profit before the opening of the American session, if should be closed at the current price.

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