CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Trading strategy: Pound Shorter (René Wolfram)

Description

René Wolfram is the only German trader who ever managed to reach the winners’ podium in the a 12-month trading competition using real money called The Robbins Worldcup Trading Championship. The René Wolfram Pound Shorter strategy is a simple strategy based on occasional weakness in the British Pound (GBP).

René Wolfram trades futures. The GBP/USD forex future quotes on the CME. Thus future requires an intraday margin of USD 555. The contract size is GBP 62.500, therefore the maximum leverage is 130:1. The minimum spread is very low: 1 point. It is also possible to use forex CFDs.

 

Suitable for : GBP/USD
Instruments : Futures and CFD
Trading type : Day trading and swing trading
Trading tempo : Maximum one trade per day, three per week
Using NanoTrader Full : Manual or (semi-)automated
 

When to open a position?

The RW Pound Shorter only opens short sell positions. The positions are opened on specific days: Monday, Tuesday and Friday. The short sell position is opened at precisely 7h45 at the market price.

 

When to close a position?

The strategy uses a time filter and a stop. The stop is automatically placed 80 ticks below the entry price. If the position has not been stopped out before 13h00 the time stop will close the position at the market price at 13h00.

This example shows a short sell position opened at 7h45. The market price evolves in the right direction and the stop loss (horizontal red line) is never reached. The position is closed by the time filter at 13h00.

Trading strategy Momentum Pinball trading range setting morning and afternoon.
 

Conclusion

Although René Wolfram trades the strategy on all three days indicated above, it is interesting to back-test the Pound Shorter for each day individually. These are the results for Monday, Tuesday and Friday respectively.

Trading strategy Momentum Pinball trading range setting morning and afternoon.

Trading strategy Momentum Pinball trading range setting morning and afternoon.

Trading strategy Momentum Pinball trading range setting morning and afternoon.


Practical implementation

Using the NanoTrader Full follow these steps:

  • Select the GBP/USD future (or CFD) and open the chart.
  • Select the template study "WHS RW Pound Shorter" in the "WHS Strategies" folder.
  • If necessary, adapt the settings as described above.
  • If you want to trade semi-automatically, activate TradeGuard+AutoOrder in the chart. If you want to trade automatically, activate AutoOrder in the chart.