Trading Strategy Explained: Asian Sweep Strategy
A successful trading strategy should prioritize simplicity while incorporating essential elements such as entry, exit, and risk management rules. These components should be explicit and mechanical to facilitate consistent execution.
1/17/20252 min read
Overview of the Asian Sweep Strategy
Forex Pair: EURUSD and GBPUSD
Entry Criteria:
Enter a trade when the price breaks out of the Asian range and subsequently returns inside the range, forming a Market Structure Shift (MSS) pattern that is opposite to the direction of break out. The entry point is at the Fair Value Gap (FVG).
Exit Criteria:
Exit the trade when a 1:2 Risk-Reward Ratio is achieved.
Risk Management:
Set a stop loss at 5 micro-pips below/above the previous low/high.
Lot Size:
Fixed amounts based on account size:
For accounts between $1,000 and $10,000: Risk $100, aim for $200.
For accounts between $10,000 and $50,000: Risk $500, aim for $1,000.
For accounts above $50,000: Risk $1,000, aim for $2,000.
Key Terminology
Asian Range: The price range between the high and low of the Asian session (19:00-00:00 New York Time).
Market Structure Shift (MSS): A pattern indicating a change in market trend.
Bullish MSS:
Bearish MSS:
Fair Value Gap (FVG): A gap formed between three candlesticks inefficiencies or imbalances in the market
Trading Examples
A+ Setup: When Price break out of Asian range, if there are HTF PD array and price reacted quickly, then the winning probability will be much higher.
Conclusion
The Asian Sweep strategy offers a structured approach to trading during the Asian session by leveraging specific market behaviors. By adhering to clear entry and exit criteria along with robust risk management practices, traders can enhance their chances of success in the forex market.
