Forex Strategy: The Amazing One Night Stand

Friday Breakouts in the Forex Markets

Friday breakouts taken in the direction of the established trend are one of the most robust breakout patterns tradeable. Rules for this strategy were released to the public over 20 years ago by system developer Joe Krutsinger and have continued to perform well to this day.* Joe Krutsinger named the system ‘One Night Stand’.

Rules for the system are as follows:

• Buy only on Fridays— at one pip above the highest high of the last ten days— if the 10 day simple moving average is above the 40 day simple moving average.
• Sell only on Fridays— at one pip below the lowest low of the last ten days— if the 10 day simple moving average is below the 40 day simple moving average.
• If you get filled on either rule, exit on Monday morning’s open, or Tuesday morning’s open, if Monday is a holiday.

Money management stops can be applied to the system so as to contain risk. The closer your stop, the more likely it is you will be stopped out. Stops can be optimized based on a recent measure of volatility using an indicator such as the ATR (Average True Range).

Why has this system continued to perform well over the years?

Most Forex traders feel uncomfortable holding risk over the weekend. Traders who hold positions backed by an underlying strong trend over the weekend period pick up a risk premium for doing so.

This is a highlight article taken from our live market updates newsletter which we update every week for our clients, where they get to receive our latest research, articles, trading tips and system updates. If you would like to learn more, we have a free update service just for you. Simply enter your Name and Email at www.forextrading-pips.com/invited and in these updates we will teach you about the pillars of success that every Successful Trading operation is built upon.

U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures, Currency and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.