July 12, 2018

New trading strategy (modified)

I will be test drive an extremely simple trading strategy. This is just to prove that no intelligence is required for trading/ making money.

Strategy is the opening hour high/ low breakout system. Nothing great about this. I will just modify and add few points above the first hour high / below the first hour low and take a system generated trade.

My broker allows me to place an intraday order with a predefined stoploss and automatic square off by 3.15 pm. So I can enter an order and then take a day off. This is also called time based exit.

Profits is whatever the markets give. Risk per trade is under 0.5% of trading capital.

Note: 
- I will look at the first hour range as defined at 10.00 am and not 10.15 am.
- if first hour range is large, then consider some appropriate SL
- this strategy does not use trailing SL. You exit on SL hit or market close

Sample chart:

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