Ice Cream Sandwich 2.0 Forex and Nadex Strategy by John C

STRATEGY NAME – Ice Cream Sandwich 2.0

CHARTING PLATFORM – Any

FOR USE ON –¬†Forex & Nadex

FILE PACK TO DOWNLOAD – None

EXPERT ADVISOR FOR THIS STRATEGY? – No

INDICATORS – None

RULES –

  • GBPUSD 15 minute chart
  • Shortly before 3 AM New York time I will mark my chart with the price of the day’s open. At 3 AM exactly I’ll mark the chart with the London open price.
  • Next I place two more lines
    • 30 pips above the London open and 30 pips below the London open
  • Next I’m looking at the price direction for the 3 o’clock 15 minute candle.
    • Here’s what’s going to happen: price will shoot either up or down at 3 o’clock; and somewhere 20 pips to perhaps 40 Pips from the opening price the price direction will reverse and make it’s large move of the day in the opposite direction from the initial 3 AM direction within about 1 – 2 hours.
    • It can happen as soon as the close of that first 15 minute candle. If the delta between the daily open and the London open is small then the reversal may come later (price wise) rather than sooner.
    • Currently I’m using the first 15 minute candle as confirmation of price direction.
    • If the first 15 minute candle closes bullish were looking at entering a sell position, and if the first 15 minute candle closes bearish, were looking to enter a buy position. In choosing an entry I’m looking to enter as close to my 30 pip line as possible, which usually means doing something counter intuitive, that is, placing a sell order while the price is still rising and vice versa for an initial falling price. That’s the hard part.
    • Entering close to the 30 Pip Mark is the key to success here.
    • What you will find is that price will go up from the London open 20,30, even 40 pips and then reverse and make the large move of the day – 60, 80 or 100 or more pips.

Go back and look through the charts it’s uncanny to see how often this sets up. My goal of getting a good entry is all tied to trying to keep risk low. As you know, price movement will usually stick close to the average daily range and that initial movement needs to be small to leave room for the big move of the day. So, by getting an entry close to the anticipated reversal point makes this (at least for me) a low-risk trade.

I set my stop loss at 30 pips and my take profit at 60 to 100 pips. And that’s it!

From the standpoint of manual trading this has an advantage over the strangle method of version 1 and as much as I can enter the trade sooner and don’t have to wait to close a pending order. This method has the advantage over the previous version of the strategy of knowing (at least within the rules of the strategy) the direction the market is going to move and can capture more pips.

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