The Asian session has been a great source of candidates for the straddle setup lately and yesterday was true to form.  From the close of the US equities markets the EUR remained in a 14 pip channel for almost 6 hours.  I typically wait for at least a 4-5 hour channel setup before entering a straddle order.

In this case I used an 8 pm (20:00 on the chart) entry with my previously mentioned 15-15-10 entry/exit criteria (15 pips above or below the channel to enter, 15 pip limit to exit and 10 pip trailing stop/stop loss).  Now some straddle traders use an OCO order with these trades so that if one side fires the other side of the trade is canceled.  But, with the huge whipsaws we’ve been seeing lately I just left both sides of the trade open. Results produced a happy face this morning with both sides of the straddle executed and the the ole Dipper producing another handsome 55 pips after being closed with the trailing stop on a big bar swoon. Total gain = 85 pips overnight.

Related posts:

  1. EUR Straddle
  2. EUR Dipper Hits a Jackpot
  3. EUR/USD Dipper Failure?
  4. EUR/USD Dipper Stops: Part 3
  5. A Short EUR Dipper