Taken from a Kathy Lien book we have implemented a tool for Android phones to work with the strategy described below.
We would appreciate if you could publish it and check if it works or need if it needs some changes.
-------------- Strategy description ----------------
Reactive trading (better use 5-minute charts)
-- Long
Enter into a position 5 minutes after a major news report is released.
. Rule #1 gives you a chance to make sure that there are no immediate retracements.
If a number is big, there will be more than 5 minutes of follow-through.
Place a stop at the low of the news candle
. Rule #2 gives you a technically based logical stop. If the currency pair manages to retrace back to the low of the candle when the news is released, it indicates that the market doesn’t really believe in the surprise
Take your profit on half of the position when it moves in your favor by the amount risked
. Rule #3 is to bank profits when you have them and play only with the house’s money on the second half of the position.
Trail stop on the remainder of the position by the 20-day SMA or set a hard stop of three times risk.
.Rule #4, using the 20-day SMA, allows you to capitalize on as much of the move as possible.
For Short trade is the same but changing the stop (this time at highs).
The link to download de tool:
- Code: Select all
http://filekeeper.org/download/shared/InAppcalendar.apk