Scalping forex with a strategy delivering a win rate above 90% and an average win to average loss ratio of better than 1.2 to 1? This could well be the one that fits you like a glove!
This is by no means a comprehensive coverage of the London Close Trade strategy, as the team at Forexmentor have provided such at the following link:
These are just my thoughts, having traded this strategy in 2011.
Firstly, my reasons for trying the London Close Trade were the following:
- I wanted a strategy that took up no more than 2 to 3 hours per day, as I was working at the time
- Having just gone through a period of disappointment with previous strategies I needed a strategy that would boost my confidence via a very high win to loss ratio combined with a reasonable win size to loss size ratio
- I wanted a proven strategy that someone had consistently traded for a substantial period, with published results of that trading
- I wanted to be able to trust the vendors of this strategy
UPDATE 2013: There is also the London Close Trade (LCT) Daily Update Service.
This is an on-going, post-training support for those trading the London Close Trade Strategy. This service is free for one month for those purchasing the LCT Strategy course. If interested in this part of the LCT service check out this link:
The London Close Trade is based on the idea that as the London session of the forex market comes to a close various factors such as traders settling up positions and so on cause price to come back within the daily range if that daily range has been exceeded.
Hence, one of the major parameters used in filtering potential trades is a specific variation on Average Daily Range. This strategy is traded for around 1.5 to 3 hours straddling the time of the London close.
Interestingly, this strategy is a counter trend strategy, in contrast to the many systems out there exhorting you to “Make The Trend Your Friend”. It is in fact a forex trend reversal strategy, albeit on a very short time frame.
However, someone who is a forex trends trader could easily add this strategy to their arsenal. They could for example switch to this strategy at the end of the London session in which they have just been forex trend trading.
Or someone who normally restricts their trading to trend trading the later part of New York session could trade the LCT a little after the New York open when London Close Trades begin to set up.
At the time of writing (late 2012) Shirley Hudson – creator of the London Close strategy – had been trading this way for over two years in a remarkably consistent fashion. Shirley provides full details of every trade she has ever taken since January 2010. In fact, the amount of detail Shirley provides and the amount of research she does with respect to trading shames my own haphazard approach of past years 🙁
Purchase of the London Close Trades strategy provides access to a number of supplementary resources, including Vic Noble’s courses on the Noble Entry (for effective trade entry optimisation) and Support and Resistance course.
As to the London Close Trade strategy itself, the spreadsheet of results is regularly updated for members to check against their own results. Shirley also uses Twitter to communicate some of her trades, although she does not provide a signal service. There is also a daily update site, monthly webinars and each day the Average Daily Range (ADR) for the major pairs is published at the end of the day for the following day’s trading, then updated during the LCT time frame.
WHO IS IT SUITABLE FOR?
Traders who are able to withstand the pressures of scalping for 2 to 3 hours each day, and who are able to trade intensively at this time.
WHO IS IT NOT SUITABLE FOR?
Anyone who cannot be available to trade during the London close. This was the reason I had to stop trading it as my time zone is in Asia.
Vic and Shirley also do regular updates to the course, posting details of trade sessions using the strategy. More details provided at the link below.