Saturday, October 19, 2013

Five Minutes A Day Trading (5MADT) Strategy

I have no idea how I stumbled upon this page, but it is actually a blog written by CMC Australia! It's a wonder why I haven't come across their blog earlier.

Anyway, I saw this pretty straightforward and simple strategy that they are advocating for simple traders with no time to spare, and they have some backtests to supplement their methods, so I find it all very compelling.

Listed below are the hyperlinks to their strategies.

EUR/USD in August 2012
Germany 30 DAX in February 2013
EUR/USD in June 2013
Australia 200 ASX in October 2013 (ongoing)

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The EUR/USD trades at 1pm Singapore time.

This trade assumes that European traders usually get the direction of the day wrong, and the profit loss ratio is set to 3.2 / 1.

Buy trade: 1pm closing price, market order -11 pts, SL -12 pts from entry, TP +39 pts from entry
Sell trade: 1pm closing price, market order +25pts, SL -12 pts from entry, TP +39 pts from entry

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The DAX trades at 9.15am Berlin time (GMT +1), but they have daylight savings from April to October, so they are GMT +2 now. That means this strategy would be effective in Singapore time at 3.15pm until 26 October and 4.15pm from 28 October onwards.

This trade assumes that Australian traders usually get the direction of the day right, and the profit loss ratio is set to 3.2 / 1.

Buy trade: 9.15am closing price, stop entry +17 pts, SL -11 pts from entry, TP +35 pts from entry
Sell trade: 9.15 closing price, stop entry -10pts, SL -10 pts from entry, TP +35 pts from entry

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The ASX trades at 10.15am Melbourne time (GMT +10), but they have daylight savings from October to April, so they are GMT +11 now. That means this strategy would be effective in Singapore time at 7.15am.

This trade assumes that German traders usually get the direction of the day right, and the profit loss ratio is set to 2.4 / 1.

Buy trade: 10.15am closing price, stop entry +4 pts, SL -5 pts from entry, TP +12 pts from entry
Sell trade: 10.15 closing price, stop entry -6pts, SL -5 pts from entry, TP +12 pts from entry

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These trades look quite good to me, and I might consider adopting them, especially the EUR/USD and the DAX trades, since I would be able to quickly take a 5 minutes break at work to fulfill this!

I will actually start monitoring the DAX trades from Monday onwards, and embark on it if results are positive once daylight savings has ended. It's too confusing for me, haha.

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