Entering the trade is only half the battle. Effective management is what turns a good setup into a consistent result. This final tutorial covers what to do after your order is triggered and how to improve the strategy through analysis.
Immediate Post-Entry Management
Once the market moves and triggers one of your pending orders (e.g., the Buy Stop), you have an active trade with a set stop loss and take profit. Now, you must decide what to do with the other pending order (the Sell Stop) that was not triggered.
- Option 1 (Conservative): Immediately cancel the opposite pending order. This limits your exposure to one active trade. Your risk and reward are exactly as planned.
- Option 2 (Advanced): Leave the opposite order active. This accounts for a “false breakout” where the price reverses and triggers the other side. This is risky: you could be stopped out of your first trade for a loss and then enter a second trade in the opposite direction. If the second trade wins, you may net a small profit. If it also loses, you incur two losses. This requires extensive backtesting to understand its viability for you.
Using a Trailing Stop
A prudent technique is to move your stop loss to your entry price (break-even) once the trade has moved in your favor by a distance equal to your initial risk (e.g., 40 pips). This locks in risk-free trade. If the market then reverses to your entry, you exit with no gain or loss, protecting your capital.
Analyzing Performance and Refining Your Approach
The GUORB Strategy provides a clear framework, but you must personalize it through rigorous review.
- Backtest: Go back on your charts and manually review every Tokyo, London, and New York open for the past several months. Note the size of the Setup Candle, which direction it broke, and what would have happened to both management options.
- Journal Your Live Trades: When you trade live, record everything: the session, the asset, the Setup Candle range, which order triggered, your management choice, and the outcome.
- Find Your Edge: Through analysis, you may discover that:
- One specific session (e.g., London) performs better for you.
- Certain currency pairs or gold are more reliable with this method.
- Your results are better with Option 1 for order management.
Conclusion
The GUORB Strategy offers a structured, rules-based method to trade a predictable market event: session-open volatility. Its strength lies in its simplicity and objectivity. Success is not about perfect prediction, but about consistent execution, disciplined risk management, and continuous learning from your own trade data. Start by observing the setups on your chart, then proceed to backtesting, and finally to small live trades to build confidence in your application of the method.
Useful Links:
- Want to learn more of our Winning Strategies? Click Here to Learn More
- Would you like to view the GUORB Youtube Video Tutorial? Click Here to Watch the Video
