Friday, July 17, 2015

Two Consecutive Days of the GBP/USD "Afternoon Delight" Strategy with Nadex


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
  • MACD
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!



"Afternoon Delight" Trade - Thursday, July 16 2015



15 Minute Nadex Chart. Click on Chart to Enlarge
On this 15-minute Nadex chart, the MACD crossover occurred at 3:15pm EDT. The market then moved below the T-Line (8EMA, shown in purple) and started to grind its way down. The decision was made to SELL the GBP/USD from 1.5620, which was a position of safety. 


Since the probabilities were high that this trade would be successful, I risked $72.72 to make $27.25. The trade was never threatened. 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 downward, and this trade was never threatened. 


Trade Results:

Win: SELL at >1.5620 - 1 contract x $27.25 profit,  less $1.80 in exchange fees = $25.45


"Afternoon Delight" Trade - Friday, July 17, 2015


15 Minute Nadex Chart. Click on Chart to Enlarge.

The rules for this strategy are slightly modified on Friday, since Nadex does not offer a 7pm expiration on Friday. Today, I was looking for a MACD crossover sometime after 11pm. The crossover occured at 1:30pm and I pulled the trigger on a trade risking a maximum of $60 to make a maximum of $40 dollars. The trade was briefly threatened, but it settled safely in the money for a full profit.

Conclusion:

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.
Nadex is now available for trading in 47 countries. You will have complete access to the Nadex trading platform, and your demo account will be funded with $25,000 in play money.

Free Nadex Education Reminder:




Click Below to View Krystal Comber's "Afternoon Delight" Strategy






The Purpose of this Blog


The Inquisitive Trader will be used  to share my experiences as an investor getting back into trading the markets. In June 2014 I joined the staff at TradingPub, and I am responsible for helping to book speakers for free webinars. Each week, I am exposed to a wealth of information from leading industry experts who teach how to trade the financial markets. When I come across interesting trading strategies, I will summarize my thoughts and share a link to the archived webinar. As I develop my own trading plan, I will also share some of my personal successes and failures. Responsible comments are welcome, but to avoid flaming posts and spam, I will be moderating all comments. I hope you find this blog useful, and wish you the very best on your journey trading the markets.

Disclaimer

The opinions expressed in this blog are solely those of the author, and should not be construed as trading advice. I am not a registered or certified financial planner. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. All individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

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