Morning Breeze Strategy

[Lohr]

Ok, either this system just doesn't work or we need more details.

I read this system last week and tried it this week. Either I'm extremely unlucky or...

On Mon-Tues I enter 3 trades, on EUR, GBP, AUD. Each go through and hit their PT but I should note there was quite a bit of struggle for each. For something that is supposed to break through decisively there was a lot of languishing about. Anyway, PTs hit: fine.

Last night, Tues-Wed I enter 3 trades, EUR, GBP, AUDs. The GBP, after much struggle and coming and going finally breaks the PT.

Problem! : From the AUD daily candle for Dec 11:

H - .7888
L - .7837

So, I add 2 pips (spread) + 1 to the entry for AUD: .7891 is entry.

This is triggered at 2300 PST.

However, AUD has a high of .7894! So the TP is not triggered. And after the news release this morning, BOOM!

SL hit for -25 pips plus spread.

???

My charts are clear as day. I can't see doing anything wrong but if so and anyone is running this let me know.

This means I lose all the pips gained in the last two days of trading in one night. How can this work with these stops?

(Problem #2: I trade OANDA. The spread widens due to the GBP news release last night at around 130am PST. So I'm down 10 pips from the spread. This would add to my loss should the PT not be hit.)

I'd appreciate any feedback, especially as this is supposedly so reliable.

[torero]

I think feb wanted everyone to observe and paper trade it to really understand the strategy before committing real money. Personally, I haven't done much observation with it due to the fact that I don't scalp, at least for now. There are others who've been using it?

[rolange]

Agreed we need more details. However it was stated that the strategy must use currency futures to have a chance due to slippage, spread and bad fills. I certainly wouldn't attempt scalping through spot FX. I'll say again that it makes no sense to use a strategy with such a poor R:R.

	Quote:	Lohr
	Ok, either this system just doesn't work or we need more details. I read this system last week and tried it this week. Either I'm extremely unlucky or... On Mon-Tues I enter 3 trades, on EUR, GBP, AUD. Each go through and hit their PT but I should note there was quite a bit of struggle for each. For something that is supposed to break through decisively there was a lot of languishing about. Anyway, PTs hit: fine. Last night, Tues-Wed I enter 3 trades, EUR, GBP, AUDs. The GBP, after much struggle and coming and going finally breaks the PT. Problem! : From the AUD daily candle for Dec 11: H - .7888 L - .7837 So, I add 2 pips (spread) + 1 to the entry for AUD: .7891 is entry. This is triggered at 2300 PST. However, AUD has a high of .7894! So the TP is not triggered. And after the news release this morning, BOOM! SL hit for -25 pips plus spread. ??? My charts are clear as day. I can't see doing anything wrong but if so and anyone is running this let me know. This means I lose all the pips gained in the last two days of trading in one night. How can this work with these stops? (Problem #2: I trade OANDA. The spread widens due to the GBP news release last night at around 130am PST. So I'm down 10 pips from the spread. This would add to my loss should the PT not be hit.) I'd appreciate any feedback, especially as this is supposedly so reliable.

[japperkai]

Raul, you are right that this is a Floor Traders favorite tactic, because I have heard several floortraders talk about this same technique....
On Big question however that needs clarification,
When trading the CME E-Mini contracts is this 8:30am CST or 9:30EST , or are you saying this is 1 hour after the open at 9:30CST. an hour can make a big difference.
My own observations of the ER2 is that there is usually a reversal/turnaround at the 8:38thru8:45am CST time. and by 9:30CST the morningmove is already over.