Simple Forex System Trading

The two pairs I trade with this method are EUR/GBP and EUR/JPY.

Rules for EUR/GBP

Time Zone Used:  GMT

Reference Price:  Open Price at 23:00 GMT

Buy Limit:  Reference Price - (7 to 10) pips *updated on 4/1/2008

Buy Take Profit:  7 pips

Buy Stop Loss:  17 pips

Sell Limit:  Reference Price + (7 to 10) pips * updated on 4/1/2008

Sell Take Profit:  7 pips

Sell Stop Loss:  17 pips

Example:

Trading Time:  23:00 GMT to 7:00 GMT (or 9 GMT)
*I normally don’t trade on Mondays as the market just opens.

All open positions are closed at 7:00 GMT (or 9 GMT).

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 Rules for EUR/JPY (Updated on 5/5/2008:  I am using this method again but with some minor changes.  Trading hours changed.  Previousl High Low changed.)

Rules for EUR/JPY (Updated on 4/1/2008:  I currently do not trade this method as the pattern of this pair has changed.  I am writing scripts to test it out in demo.)

Time Zone Used:  GMT

Reference Price:  Previous Day’s High and Low (From 6 GMT to 5 GMT)

Buy Stop:  Previous Day’s High + 5 pips

Buy Take Profit:  30 pips

Buy Stop Loss:  30 pips

Sell Stop:  Previous Day’s Low - 5 pips

Sell Take Profit:  30 pips

Sell Stop Loss:  30 pips

Trading Hours:  6:00 GMT to 23:00 GMT

Orders that are not touched are cancelled at 23:00 GMT

All open orders are closed at 23:00 GMT.

For example: