Asia Model vs Midnight Snap Trading Strategies

Oct 3, 2024

Lecture on the Asia Model vs Midnight Snap

Overview

  • Asia model is similar to the Midnight Snap.
  • Key difference: Driving from initial balance range in Asia.
  • Requires waiting for a range to form and a breakout confirmed by a candle.

Trading Strategy

  • Focus on retracement trades to the opposite side of the range.
  • Austin will provide a Google sheet to track the power of these retracements.

Data Collection and Analysis

  • Wait for range formation from 1930 to 2030.
  • After 2030, look for breakouts on either side confirmed by candle closure.
  • Aim to measure the success rate of retracements.
  • Use a price range tool to collect data from the confirmation candle.
  • Measure max extension or distribution from the confirmation candle, not the range.
    • This helps in determining distributions.
  • Collect range sizes from 1930 to 2030.
    • Example: Measure extremity (high-low) of the range.

Assignment Purpose

  • Familiarize with the model before discussing entry methods and risk profiling.
  • Collect data on range sizes, success rates, and distributions.

Time Frames for Study

  • Conduct analysis on both 15-minute and 5-minute time frames.
  • Compare differences in confirmation candles between time frames.

Google Sheet Instructions

  • Track data: Date, trigger (long/short), objective achieved, max distribution, range size.
  • Use indicators to simplify marking ranges.

Execution and Backtesting

  • Use free indicators to automate range marking.
  • Backtest different assets and time frames.
  • Focus on improving data collection efficiency.
  • Understand that not all ranges complete; some return later.

Modeling and Refinement

  • Systematic approach aligned with Midnight Snap.
  • Use distribution tables for entry strategies.
  • Explore filtering by day or other factors for high probability trades.

Indicators and Tools

  • Free indicators available for drawing ranges.
  • Use DR indicators for efficient data collection.

Practical Applications

  • Test model across various assets like crude, gold, and currencies.
  • Observe and log anomalies in strike rates for data refinement.

Data Measurement

  • Ensure data collection from the 5-minute or 15-minute consistently.
  • Cut off distribution measurement at 08:00.

Asset Accuracy

  • Model works well across multiple assets and time zones.
  • Observe how different commodities might need time adjustments.

Conclusion

  • Aim to understand and utilize the model effectively before learning execution strategies.
  • Goal is to automate trades and minimize screen time by using limit orders.

This summary captures the key points and instructions from the lecture on the Asia Model and its comparison to the Midnight Snap, focusing on data collection, analysis, and strategy development.