Hello, My name is Dachel and I developed a system this week which looks very nice. Maybe we can improve it a little bit more coz im still on backtesting and is not yet the final system.
Anyway…here it is.
I used (IBFX) to perform the back test.
Here’s the deal.
Open the 4 hour chart
Take the Hi and Lo of the second candle of the day (GMT)
Place an Buy order 10 pips above the Hi and 10 pips below the Lo
(you can use the Eagle Breakout Indicator for easy visualization)
When the price hit an order cancel the other.
You should place your SL at the other side of the channel.
(don’t enter the trade if the channel is more than 200 pips)
You should place the TP at the size of the channel.
Close the trade at the end of the week if given the case.
If your trade is still on by the next breakout stay in until you lose or win.
This baby gave me in my manual backtest in 2007 around 4658 pips. This system can be improved if someone want to try a different strategy or maybe a Breakeven or SL. Anyway I guess is a very profitable system. Try it on a demo or backtest to check by your self. Any suggestion is welcome as well as for backtest for other currencies and other years.
Well I guess that’s all for now, I leave you my monthly results.
Jan: +278
Feb: +333
Mar: +1107
Apr: +366
May: +343
Jun: +726
Jul: -412
Aug: +349
Sep: +428
Oct: +776
Nov: +280
Dic: +114
TOTAL: 4658 Pips
2008
Jan: -278
Feb: +113
Mar: +434
Apr: +432
May: -240
Jun: still on
Jul:
Aug:
Sep:
Oct:
Nov:
Dic:[ATTACH]each[/ATTACH]
Also the person who started this thread has not been on here for a while by the looks of it.
Been using different break out systems though and this is one of the ones I do everyday with not too bad success but I changed a few things on it to make sure I lock in some profits though.
Just in case somebody does still use this method or following it by some off chance, this does work best on GBPJPY, the other currencies are kind of slow for this system.
But all in all not a bad break out system if you want to go lower then the daily charts
I use the same method although I use a few other currencies too, though I must say GBPJPY does work best with this method most of the days but instead of putting a stop loss on I only run a trailing stop, so once it hits I lock in the frrst few pips I can get…If you do this enough you will be raking in some profits, although what I do though is put a 5Sma on just so I dont go against the trend, I dont use the SMA for the trades just to see where the trend is going.
So if it the second candle of the day is above the sma I will put a pending order for long, if it is close to the SMA I
will leave it as you might get in for a few pips but not enough to lock in… But to make double sure about A trend check the daily charts
I developing simple algo to trade with breakouts. Found this thread in Google:-)
Yes it works better then any other common simple strategy. Very helpful info you can get in well known Turtle book.
But, it works best with commodities not Forex pairs, I test it with Gold CFD and SnP 500 index.
Instead Donchian channel I use MinMax indicators (almost same as DC). Slow 50 and fast 25. Timeframe 4H or d1.
Entry by 50 channel (same as Turtles), Take profit = 1 channel width.
Exits by trailing SL, that moves by 25 channel low or high for long/short positions.
To remove false breakouts I set pendind order only after 2 candle closed in 50 channel. Pending order must be set 200-500 pips from channel top/low it depends on timeframe and instrument.
If 50 channel top/low changes but without breakout, then previous pending order canseled and wait until new channel will form. This way I filter slow untadeble price movements.
I dont use SMA because it make system lagging. Channels are laggless, and can catch fast price movements.
