Good early morning to everyone, I use the range on the EJ between 11pm - 6am as a guide to my day trades after 6am. The 3 day average range is 119 pips, the safe range is 119/1.5 = 79 pips. All this is quite low for the EJ but all I have to work with atm. The Box Range (11pm - 6am) is currently 24 pips, however, the current day's range is 59 (from 9.001pm - 01.11am). How this will look by 6am is anyone's guess. However, the aim is to set a target either to the long side of the highest price + 3pips or to the short side of the lowest price less 2 pips depending on how wide the total bandwidth will be and complying with not expecting the current day's range to exceed the 3 day average number of pips.
I always use a 45 pips stop loss (SL) on the EJ and am not comfortable with setting a PT to achieve less than my SL. If the bandwidth + brokerage + PT exceeds the 3 day average number of pips then this is a "non-qualifying" (NQ) day for trading. In these circumstances there is a possibility for a "salvage" trade or even a "reverse" trade but I prefer to explain this later on to avoid initial confusion.
Just after 6am price could be any where within the box range. Whilst I may set two trades to trigger if I will be away from my PC for any length of time, the intention is only to execute one trade. I will set one at the top of the range and one at the bottom. Should either one trigger I then cancel the order for the second trade as soon as possible. If price is quite close to the top or bottom (top 1/3 or bottom 1/3 of the box) I will very often just set an order to open closest to the top or bottom.
Once triggered the trade will either win or lose or will expire at 8.45pm on the same day. Sometimes I will exit a trade early but the recorded results will reflect strictly the above criteria.
All my trades are pre-advised and if I oversleep and miss an entry then I think it best to just to class this as a missed trade for simplicity.
I am going to use a virtual bank of £2700 ( = 60 x £45) and trade at £1 pip.
If any one else wants to join in with their own method and use a virtual bank to the same value please feel free to do so. However, you must pre-advise your EP, SL & PT and value per pip in order that your success can be verified by previous posts.
I started making posts under the EY Institute forum in Forex Factory about two weeks ago, however, my day trading style is out of place in that environment and am hoping that I will attract day traders and indeed anyone else who thinks they can do well on the EJ to post to this thread. It should be fun. I will bring forward a loss from my posts there of 108 pips which means that my virtual balance is down to £2,592. I intend to run this over a long period of time so I'm not worried about a minor set back.
Be back later
