Simple Forex System Trading

I have been using CCI to trade the euro pound pair for quite some time.  Because this pair is not very volatile and tends to retrace reasonably after decent rise or drop, the commodity channel indicator works well with this pair.  I also found that it is even more accurate during the post-US and pre-European sessions.  Here is the strategy:

Hours:  20:00 GMT to 6 GMT

Time Frame:  1 hour chart is used

Buy Condition:  Place limit buy a few pips (0 to 5) higher than the recent low after CCI breaks above -100. 

For example, at the 21:00 GMT hourly bar, low was 0,7900, CCI was -125.  At 22:00 GMT hourly bar, low was 0,7904, CCI was -103.  At 23:00 GMT hourly bar, low was 0.7910, CCI was -87.  So, we place a limit buy anywhere between 0.7900 and .7905 at your choice at the open of 00:00 GMT.  Remember.  This order is only valid for an hour.  If not filled during the hour, cancel it.

Sell Condition:  Place limit sell a few pips (0 to 5) lower than the recent high after CCI breaks below 100. 

For example, at the 1:00 GMT hourly bar, high was .7950, CCI was 132.  At 2:00 GMT hourly bar, high was 0.7944, CCI was 96.  So we place a limit sell at the open of 3:00 GMT.  Set the limit sell price somewhere between 0.7950 and 0.7945 at your choice.  The order is only valid for an hours.  If not filled within the hour, cancel it.

Take Profit:  10 pips

Stop Loss:  15 pips

Trailing Stop:  If you like to put a trailing stop to protect your profit, feel free to do so.  I tend to do it when I gain 6 or 7 pips or so, and I move the stop to the break-even level.

No-No rule:  Do not open new buy or sell after 6:00 GMT.

What to do if buy or sell order still open after 6:00 GMT? 

You can close it or you can just leave it to hit the pre-set take profit or stop loss.

Yesterday was a good day as I raked in 10 pips.

In the image below, the CCI broke above -100 at the 23:00 GMT bar (1), so I placed a limit buy at 0.7937 at the open of the 00:00 GMT bar (2).  In Oanda, I could also set to have the order expired in an hour.  Therefore, it would automatically expire at 01:00 GMT if not filled.  With the same ticket, I set the take profit at 0.7947 and stop loss at 0.7922.

The buy order was filled at 0:55 GMT and closed with a profit at 2:00 GMT.