When you hear the name of the Sunday trading strategy, you have already guessed it, right? The creator of this strategy has health problems and cannot sit in front of the screen for more than 30 minutes. So he found a different approach without having to spend so much time. It can also be applied by some busy investors who are unable to trade continuously or are lazy to look at the chart for a long time. I will present the trading idea very briefly for the “lazy” criteria of the article.
Sunday trading strategy features
- Timeframe: M5; Expiration time: 30 minutes
- At the opening hour of the week (4 am on Monday), you will see clear gaps after glancing at some currency pairs.
- We choose the RSI indicator. If the opening price shows a Gap and is outside the oversold/overbought zone, the price will likely bounce back to fill the Gap.
- You can place orders between 4 am and 4:10 am with an expiration time of 4:30 am. If the Gap is not clear, you SHOULD NOT ENTER.
Gap intervals don’t always appear at the beginning of the week. In 2 months of testing the strategy (8 weeks), there were 6 weeks that I can enter a total of 13 orders, 11 winnings, and 2 losings (rate of 84.6%). There were 2 weeks that I can’t enter orders.
Below are the positions that fully meet the conditions to enter orders with the Sunday strategy. Note that all are analyzed and entered on the first day of the week 12/9.
At the start of the trading session in the NZD/USD currency pair at 4:00, there was a gap down. At the same time, the RSI was below the oversold zone so I immediately placed a HIGHER order with an expiration time of 30 minutes, expecting the price to fill the previous gap.
Meanwhile, in the GBP/USD currency pair, there was also a gap up and the RSI was in the overbought zone. So I entered a LOWER trade at that moment with a prediction time of 30 minutes.
Note when trading
When using the Sunday strategy, you shouldn’t rush into placing orders with high risk. As for the risk, I will demonstrate it with pictures for you to see.
Looking at the GBP/JPY currency pair, there was a gap up but the RSI has not entered the overbought zone. Therefore, in this setup, I would not enter orders until all conditions are satisfied.
Besides, in the AUD/USD currency pair, there was also a gap down in the first session of the week. However, the RSI was not clearly in the oversold zone. That’s why I ignored and did not enter this order because it wasn’t eligible.
If you are a lazy or busy trader, then this strategy is suitable for you. Despite it doesn’t need much analysis, the winning rate of the Sunday strategy is quite high compared to other trading strategies. You don’t need to know too much about technical and fundamental analysis on candlestick charts. You can also trade effectively in the opening sessions of the market at the beginning of the week. Wish you successful trading with this interesting strategy in IQ Option.