MeetPips.com

I've been gone for about two months! Really, has it been that long?

I expected to lose some followers.. but I actually gained followers!

Wow, I guess you guys want to know where the hell I've been right?

Keep on reading..

See after I've hit the record with the GBP/JPY. I was extremely happy, but something was bothering me.

After a long search, I discovered what it was! It was the huge wins! 

(Now you're thinking okay, are you even a forex trader? Huge wins is what everybody wants)

Yes indeed! But huge wins are inconsistent! 

I'm not the type of trader that occasionally wants to make huge profits and then lose some and then make some again when the big trade arrives.

I want to trade everyday!

So I stopped my Veyron. Took it back to the laboratory. And completely changed the way it trades.

See I was getting tired of waiting for trades. Especially in a ranging market. My strategy was not designed for ranging markets.

I needed a strategy that would work in ANY TYPE of market! Of-course, losses will always be there but at least I have the chance to make money every single day the market is open!

You're thinking, Merritt.. Are you trying to FORCE trades??

Yes, I am. But wait until you see why ;-).

   

Take a look at this daily chart of the GBP/JPY.

There's something you should notice..

Notice how price almost never reaches the low ow the previous day (in an uptrend) or the high of the previous day (in a downtrend)?

I've circled the times when this did happen so the system isn't perfect.

But with the right leverage (I'm testing 1:50, 1:100 MIGHT work as well) you can place your stop right above the high or low and rake in the profits. Because if the previous day was a selloff day (red candle) you have 80-90% chance that the next day will be a selloff as well. And same goes for the uptrend!

That clarifies the stop. But how do we take profit in this?

Thats actually very easy, you have 2 options.

• Go for a fixed 1:2 ratio and always place your TP according to those calculations.
• Don't set a take profit. (What?? NO TAKE PROFIT? ARE YOU INSANE??) 

Well.. maybe.. partially haha. See incase price falls and goes back up (The huge spike a few days ago) You would be better off with a 1:2 ratio because your TP would be hit.

But in a lot of cases, it would be better to take profit at the candle's close.

Now the big question is, when is the candle's close??

Great question, because this opportunity is not available at every broker.

You need a broker who's platform is set at either GMT+2. Or whichever time that makes the NEW YORK CLOSE at 5 PM, the end of the day on the platform.

So every-time a daily candle closes, thats 5PM EST, the end of the New York trading session.

I don't know if it is allowed to spam here but my broker (See the pictures left low corner) has that perfect time zone set! This creates the best opportunities, ask Nial Fuller ;).

I'm going to be testing this strategy! However, the GBP/JPY has been a little rocky since the earthquake in Japan (my prayers go out to the people and families who've suffered). So we might see a little inconsistent behavior for as long as 3-4 weeks. Or as long as the nuclear problem stays afloat.

And about the EUR/USD. I'm developing the same kind of strategy for that one. But it might be on a larger time frame (weekly or monthly).

Remember, these are just tests, no real money is on the line here!

I will update every day on the previous trading day. So It's safe to say; I'm back! :-)

Wish me luck!!

Merritt