These are the trading rules for the JP225 stock index CFD.
The year-to-date performance is shown in the top left of the chart.
In summary: 20 trades, a 70% win rate, and a payoff ratio of 1.7.
Please refer to the attached chart for full details.
Indicators used:
Previous day’s Tokyo market high (09:00–15:00 JST) – red
Previous day’s Tokyo market low (09:00–15:00 JST) – blue
Previous day’s closing price (from the Tokyo market through to the US market) – yellow
VWAP line from 09:00 of the previous day (anchored at 09:00 of the previous day, two-day VWAP) – white
5-minute opening range (09:00–09:04) and entry cut-off time (10:00)
Vertical line marking 09:00 (start)
Vertical line marking 11:00 (end)
Instrument:
JP225 stock index CFD
Timeframe:
1-minute chart
Entry conditions (long positions):
Not a public holiday.
Between 09:00 and 10:00.
The opening range has been broken.
One of the following has functioned as support: the previous day’s high, low, close, or VWAP.
Price is trading above the VWAP.
Key points:
Support has been confirmed within the opening range, or support has been broken.
If any of the previous day’s high, low, or close is positioned above and is likely to function as resistance, the risk–reward ratio must be at least 1:1.
Exit conditions (long positions):
When the pullback low is broken.
Or when a new high is made.
Or at 11:00.
Stop loss:
Pullback low.
Or the most recent low.
Trailing stop:
Pullback low.
Position size:
1% of account balance.
Important:
Please adjust the time settings for each indicator.
My trading environment is as follows:
The MT4 server is set to GMT+2 (winter).
02:00 server time (winter) corresponds to 09:00 Japan time.
09:00 Japan time is the Tokyo market open.
During summer time, manual adjustment is required as follows:
03:00 server time (summer) corresponds to 09:00 Japan time.
09:00 Japan time is the Tokyo market open.
Subjectivity in identifying the pullback low:
The pullback low and the most recent low may be interpreted differently by each trader.
Therefore, results may be significantly affected. Please be aware of this.
