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Night flat Strategy

Yuri | Published on the sun Jul 30, 2017 10:42 am | 3826 Views

Currency pairs to be used: EURUSD, GBPUSD, USDJPY, USDCAD, AUDUSD, USDCHF.

This trading strategy is based on trading carried out during the first half of the night, from 22.00 to 02.00, at the time indicated in your trading terminal. If you look at the price movement during this period of time, you can see that the trend is sideways (flat), as most of the exchanges are closed at this time. The range of fluctuation is usually about 10-40 points. 

It should be noted that currency futures are correlated with the currency pairs; however, trading does not take place in the futures markets, as they are also closed at this time. Therefore, the fluctuation during the period between 22:00 and 2:00 is minimal and the price always tends to reach closing price of the futures.

Therefore, using this information, we can frame our trading strategy.

At 22:00 when futures market Pit is closed, you can place 8 pending orders: 4 of them should be Buy Limit orders and 4 of them should be Sell limit orders at the distance of 15, 20, 30 and 35 respectively. Take Profit is placed at the closing price level of the candlestick at 22:00. Stop-Loss is set at the distance of 50 points from the farthest pending orders. These will be Sell Limit 4 and Buy Limit 4 on the picture. 

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