With your chart correctly marked with session times, you can now apply the GUORB Strategy’s precise entry rules. This tutorial focuses on the mechanics of identifying the setup and placing your orders.
The Strategy Parameters
- Time Frame: 15-minute chart (M15).
- Order Types: Buy Stop and Sell Stop pending orders.
- Key Candle: The last 15-minute candle before a major session (Tokyo/London/NY) opens.
Step-by-Step Trade Entry
- Identify the “Setup Candle”: As you approach a session opening time (e.g., 1:45 PM before a 2:00 PM open), watch the 15-minute chart. The candle that closes at, or is forming right up until, the moment the session opens is your Setup Candle. This is the candle you will use for all calculations.
- Measure the Risk Range: Measure the distance in pips (or points) between the high and the low of this Setup Candle. This distance defines your initial risk. For example, if the high is at 1850.50 and the low is at 1846.10, the range is 4.4 pips on gold, or 44 points.
- Place Your Pending Orders:
- Place a Buy Stop order 1 pip (or 10 points) above the high of the Setup Candle.
- Place a Sell Stop order 1 pip (or 10 points) below the low of the Setup Candle.
- These orders should be placed in the final 60 seconds before the session opens, ready for the immediate breakout.
- Calculate Position Size & Set Stop-Loss/Take Profit:
- Stop Loss: The stop loss for your Buy Stop is placed at the level of your Sell Stop (the low of the Setup Candle). Conversely, the stop loss for your Sell Stop is at the level of your Buy Stop (the high). The distance is the range you measured.
- Take Profit: Set your take profit at a 1:2 Risk-to-Reward ratio. If your stop loss is 40 pips, your take profit is 80 pips from your entry.
- Use a risk calculator (many free ones exist online) to determine your lot size based on your account balance and your risk percentage (e.g., 1% of your account).
The Philosophy
You are not predicting direction. You are setting a trap on both sides of the market’s immediate pre-open range, ensuring you catch the initial breakout momentum regardless of which way it goes. In the final article, we will cover critical post-entry management and how to analyze your results.
Useful Links:
- Read the final part of this tutorial by Clicking Here.
- 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
