Dear friends!

We all love to turn on terminal in the morning and find some profit at our account.



But we should take care about this from the evening, far before boil a cup of hot coffee and leisurely browse Forex analysis and news from the world of millionaires. In this article I’d like to share with you one trading strategy called «Good Night». It is characterized by its simplicity and small time-consuming.


To try it you will need platform with Metatrader 4.
You will trade EURCHF, AUDUSD, AUDCAD, GBPAUD, GBPJPY, GBPCHF, GBPNZD, CHFJPY, EURAUD, CADJPY, AUDNZD, CADCHF, EURNZD, EURCAD at H1 + D1 timeframes.



The basic idea of ​​the strategy sounds like this:

Any abnormal action must have the appropriate reaction. If was formed an unusually large candle, the next day we should expect correction.





The question arises, how to determine how large should be the candle? In fact, the solution is quite simple. To do this, we will compare the distance which price pass for today, with an average of daily volatility.

The average daily volatility can be easily determined from the online table.
If for a day the couple went 50% (or more) of its average daily volatility - hence there are prerequisites to the correction.

All difficulties that we have to check a lot of currency pairs and doing it manually can be not very convenient, so I recommend to use i_vabank indicator, which you can download from the web freely.

After starting, indicator displays a list of currency pairs and sizes of candles. There is information about the size of the daily candles: opening price, closing price, spread and size of the body of the candle (in a five-digit numbers).




The indicator has only two options. The first parameter (shift) is responsible for the time shift. A value of zero means the current day. To see data of the previous day, replace it with number 1. The function is useful if you for some reason missed with the entrance and did not have time to enter the position at the evening. The second parameter is responsible for the frequency of updating information. If shows true, the information is updated at every tick, if false - at the opening of a new candle on the current chart.

The indicator picks up all the characters from the market survey by default, so unnecessary characters should be removed from the list. To do this, right-click on the window of the market review and select "Symbols".

Currency pairs in this strategy are divided into groups.

Group (1 to 5). This includes priority currency pairs for which the probability of a profit is 5 to 1 or more.
EURCHF, AUDUSD, AUDCAD, GBPAUD, GBPJPY

Group (4 to 1)
GBPCHF, GBPNZD, CHFJPY, EURAUD, CADJPY

Group (3 to 1)
AUDNZD, CADCHF, EURNZD, EURCAD



1) So, at 22:00 start looking for the body of large candles (using i_vabank indicator). As a rule, the size of the candle should be 100 points (1000 for a five-digit) or more (for couples with low volatility may be less). Next, we compare the size of the candle with the average volatility; and all pairs which have been move 50% and more of their average volatility we write on a sheet of paper (or just remember).



2) Then, we are choosing the most deserving tools of the trade. That is, we always give preference to the highest-ranking group (2nd better than 3rd and 1st better than 2nd).

3) When we have chosen the most preferred pair, it's time to enter the market. To enter you need to choose direction which is opposite to the direction of a large candle. Set the take profit of 50 points and stop loss at 100 pips. It is, in fact, all of the trade for the day.

The next day, repeat the same procedure. An exception will be Friday evening and Monday opening. Accordingly, we open trades on Monday, Tuesday, Wednesday and Thursday. Already open trades can hang for several days, until they will be closed on TP or SL. This is normal.

Conclusion

Good Night's strategy takes a minimum of your time, and did not require permanent monitoring of the charts. This is a rare example of a system that combines a high enough efficiency and ease of trade. Just remember that any strategy includes losses, so always follow the money management, even if you managed to win a few trades in a row.
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