32# ADR (Average Day Range) Strategy Trading System
Submit by JanusTrader
Currency Pairs: GBP/USD, GBP/JPY, GBP/CHF
Indicator ADR1 (Set 14 period)
At 5PM EST:
1- Close out any open positions
2- Cancel any unexecuted orders
3- Set an Entry Buy order 1 pip above previous high
4- Set an Entry Sell order 1 pip below previous low
5- Set stops and limits using the following guidelines:
50 pip profit target, 25 pip stoploss if ADR ABOVE 200
40 pip profit target, 20 stoploss if ADR BETWEEN 175 and 199
30 pip profit target, 15 stoploss if ADR BELOW 175
Do no trade if ADR is below 100
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How to calculate ADR (Average Daily Range)
It may be easiest to use an excel spread sheet for this.
Take the H/L for each day, for the past 14 days.
For each day list the amount of pip's between the H and L
Example. H = 1.5623 L = 1.5586
5623 – 5486 = 137
Add the total amount of pip's for all 14 days and divide it by 14.
This will give you the average daily range.
Average pips: +250 – 300 /month.
Max drawdown since 2004:175 pips.
In the picture ADR (Average Day Range) Strategy forex system in action.
Share your opinion, can help everyone to understand the forex strategy.
tomi (Friday, 09 May 2014 00:30)
hello admin, what is the use of adr1 indicator in this system.thanks.