Forex strategies revealed | FSR Forum

Guys (and ladies, of course) I have tried many strategies over time, some with success some without. All in all I’m more or less equal on my account. This is mainly due to my lack of time for Forex and no time to fully test some of strategies that have great profit potential. I work regular daytime job, so I don’t have time for daily strategies that involve looking at the charts all day. That leaves me with strategies like Midnight Setup (http://forex-strategies-revealed.com/advanced/midnight-setup), that are followed once a day, usually at night when all other obligations are done.

Lately, I was thinking of applying some modifications to this strategy. Basically, a trader has to ask himself how much is he willing to lose on each trade? For example 40 pips is more than enough for me, for someone else that’s nothing. It all depends. Let’s say that I’m willing to risk 40 pips on each trade. Since Midnight setup is a good breakout strategy, let’s apply this to it: put orders according to the rules, and stops at 40 pips instead. Now we need to determine limits for taking profits. Let’s assume that all we need is a small edge in betting on the market – nothing big. So I suggest putting limit at 50 pips. That’s basically it.

Since Midnight Setup is a breakout strategy, I hope that it will have more winnings than losses. Then, all we need is for the price to go the extra 10 pips in our direction and after a while, we’ll have a profit on our account – right?

Currently I’m trying it out on my Demo account. We'll see what happens over time. What do you think?

See you

Thank you. It would be interesting to see the results.

Basically, what you've described is a good example of a simple but effective money management (risk/reward) approach that can be applied to every strategy.
All we need to do is determine profits vs losses equilibrium and tilt in our favor; plus, of course, being realistic about the profit goals instead of trying to capture the entire market move from start to finish will ensure a profitable and happy outcome.

Happy trading!

Edward

So far, I had 4 trades all based on Midnight Setup strategy. All 4 were triggered, two ended up in losses, two as winners. That means combined profit of 20 pips. Not much, but far better than nothing. After all, it’s only 4 trades. Basically, I don’t need anything else. Just for this situation to repeat many times over.

This approach can probably be more sophisticated, taking in account the previous days range, calculating the best win to loss ratio for a certain currency pair, but in the end - who cares! I really think that if a person subjects himself too much into doing all these things, he will definitely have no life outside Forex. And that’s not the point, right? I only want to be able to make constant profits (no matter how small they are).

I will post my account statements, as soon as I have enough results for this to make sense.