Night Club

Mean Reversion Trading during the Asia session

Strategy

Trades will be opened in the late New York session or early Tokyo session and typically closed before the London session. In some cases the trades will be closed during the London session or in rare cases in the New York session.
Limit/market orders are used and trades are protected by stop loss (in some cases a hidden stop loss that is executed by the system). Orders have profit levels and time stops.
Averaging (grid), Martingale, hedging and pyramiding are not part of this strategy. Multiple trades of the same currency pair can be open at the same time but are part of different strategies or used to optimize initial entry. Several filters are used to avoid trading during news or unfavorable periods.

Methodology

Strategies will be evaluated on a regular basis and adjusted, temporary disabled or removed if necessary. Additional strategies can be added in the future. Each strategy was back-tested and passed a forward test on a live account. Strategies were tested with different lot sizes. To achieve a similar performance I recommend to use the same broker and account type. Network latency (ping) has a minor impact on the performance.

I trade the same strategy on my personal account with large lot size. To give you the best entries I use a small trading size for the signal. In that case the trades will be filled at a better price as we are trading during the lower liquidity session. However the performance decreases with larger account size.

It is worth mentioning that this strategy has worked even during the beginning of the Covid-19 pandemic without significant drawdown.

Recommendations

Enable "Copy Stop Loss and Take Profit levels" and set "Deviation/Slippage" to 0.5 in the MetaTrader signal settings. If you have a broker with large spread during market open / rollover, disable "Copy Stop Loss and Take Profit levels".

If you miss many trades or suffer negative slippage, make sure you are using an account with low spread e.g. IC Markets RAW account. In general accounts with commission are better for my strategy than commission-free accounts. If you still experience too much slippage after taking my recommendations into account, please write a message.

For traders with increased profit expectation or very small accounts, I recommend my signals 'Night Club Selection' and DEVGRU.

Avoid any strategy that is based on dangerous money management e.g. averaging (grid) or Martingale.

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