This trade comes courtesy of Krystal Comber, CEO of SlickTrade. The full text of this strategy, can be found in TradingPub's new free eBook
"Trading Made Simple - Strategies that Risk Less than $100."
The "Afternoon Delight" trade has been extensively tested on the GBP/USD currency pair, and it is very consistent and super simple to execute if a setup is in play.
The trade requires two components:
- 15 minute charts on the GBP/USD
If you see a crossover after noon, a trade setup is in play. it really doesn't get much simpler. For full details on this strategy, make sure to watch Krystal's short video at the bottom of this blog.
Here are the steps you need to take to execute the GBP/USD "Afternoon Delight" trade.
- Select the 7pm daily on the Nadex platform
- Look to see the overall trend direction from the start of the New York Session
- If it was bearish (downward movement) then you will be looking to Buy after you receive confirmation of trend direction change
- If the trend was bullish (upward movement) then you will be looking to Sell after you receive confirmation of trend direction change
- If there is any news on GBP or USD during the hours of 12pm – 7:15pm (EST) – avoid trading the strategy that day
- Once the cross occurs on the MACD, wait for full formation of the current 15 minute candle
- If the trend direction was bearish, then you would purchase a Buy at the lowest point of the body of the candle where the cross occurred
- If the trend direction was bullish, then you would purchase a Sell at the highest point of the body of the candle where the cross occurred
- I normally place a market order and a working order on this strategy. Many times the strike gets tested for the next few hours, so setting a working order in addition to the market order can give you additional profit possibilities overall.
- That’s it!
Here's how this trade played out yesterday (June 24, 2015):
On this 15-minute Nadex chart, the MACD crossover occurred at 2pm. The market then moved above the T-Line (8EMA, shown in purple) and started on an uptrend. The decision was made to BUY the GBP/USD from 1.5680, which was a position of safety. The following trade was placed:
Since the probabilities were high that this trade would be successful, I risked more than I'm normally comfortable risking. $84 risk for a $16 reward per contract. 5 contracts were purchased. I've been trading this strategy for several months, and I have been rarely disappointed, so I wasn't too worried.
It is important to note that if the market suddenly decided to reverse and attack my position, it would be very wise to bail out and cut losses. But that wasn't the case yesterday. As it usually does, the market just continued to drift upwards, and this trade was never threatened. If I had decided to place my trade later, there would not have been a market at 1.5680 for a BUY. The market settled in the money
Win: BUY at >1.5680 - 5 contracts x $16 profit, less $9.00 in exchange fees = $71.00
This strategy is very consistent. To backtest it, just load the 15-minute charts and the MACD. Look at the time period after 12noon and look for a MACD crossover. If it happens, look at where the GBP/USD price is at 7pm. Test this strategy in demo before you attempt trading it live to see if it suits your trading style.
Try this Strategy Out for Yourself. Download a 2 Week Nadex Demo.
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The Trading Pub Team!