Sunday Breakout Strategy

[cprao]

Thank you Phil for introducing a new profitable and less comlex strategy.

I went through the steps and I think I understood the steps. I do use IBFX Demo so I should be having Sunday 20.00 GMT 4 HR candle. I have never seen the ATR indicator but I will try spot that today on metatrader. I just want to clarify the following time match since I am always confused with GMT and local timings.

Instruction says looks for Sunday GMT 20.00 Candle. It means I have to wait for the close of this 4 HR candle which will happen at 24.00 GMT. Is this correct ?

Since I live in a PST(USA - Pacific) time zone, my time would be 1 PM and I will wait until 4 PM to close the 4 HR candle. I can only enter into a trade, probably, at 4.02 PM PST or 00.02 (GMT) since at least 2 mts are required to place the orders.

(Assumption : I will place 2 orders one for short and one for long. Both the orders would be 10 pips from the high and lows of the 20.00 to 24.00 GMT candle. On hitting one order, I can cancel the other order)

[phil838]

Originally Posted by cprao

Since I live in a PST(USA - Pacific) time zone, my time would be 1 PM and I will wait until 4 PM to close the 4 HR candle. I can only enter into a trade, probably, at 4.02 PM PST or 00.02 (GMT) since at least 2 mts are required to place the orders.

You almost got it! Your thought process about the time is correct but your time zone calculations are off by 1 hour. I'm in Arkansas and my IBFX Sunday candle closes at 7pm, so you should be two hours behind me and have it close at 5pm.

Originally Posted by cprao

(Assumption : I will place 2 orders one for short and one for long. Both the orders would be 10 pips from the high and lows of the 20.00 to 24.00 GMT candle. On hitting one order, I can cancel the other order)

Correct, except you don't automatically cancel the other order. Sometime one trade will be hit and end up reversing and getting stopped out, and then the other trade will trigger and end up being a winner. But then again, sometimes both trades will end up getting stopped out.

I only cancel the second trade if the first one goes up a significant amount. People keep asking what that amount is, and I really need to figure out an exact number for it, but to tell the true I just judge it on a case-by-case basis. Here's how I explained it to Mumpips earlier this week...

Imagine the current ATR is 500 pips, which would make our profit target for the week 250. If the short trade gets triggered, moves down 225 pips, and then reverses and ends up losing would you enter the long trade??

Of course not! Because if the average range of the pair is 500 pips per week, and we've already "used up" 225 of that on the downside then there's only around 275 "free" for the long trade to go. Since our profit target is 250 that's cutting it way to close (it is an average, after all), so we'd skip the long trade for the week.

[phil838]

Hi everyone!!

I'm going to be on vacation next week so I won't be around after Saturday night. If anyone has any questions that would keep you from trading on Sunday make sure you ask them in the next two days!

I'll still be trading the breakout on Sunday from my hotel room, and I'll still post the trade numbers right after midnight GMT, but after that I'm shutting the computer off and letting the pending orders handle everything. Hopefully I won't lose anything from not being around to move the stoploss to break even.

[mumpips]

Originally Posted by phil838

Hi everyone!!

I'm going to be on vacation next week so I won't be around after Saturday night. If anyone has any questions that would keep you from trading on Sunday make sure you ask them in the next two days!

I'll still be trading the breakout on Sunday from my hotel room, and I'll still post the trade numbers right after midnight GMT, but after that I'm shutting the computer off and letting the pending orders handle everything. Hopefully I won't lose anything from not being around to move the stoploss to break even.

HI Phil,

Enjoy your holidays and all the best to your trade

[mumpips]

Hi Phil,

I am practising pending orders on GFT platform.

When I place 2 limit orders on long and short entry. Long failed.
When I changed limit to stop order for long entry & limit order for short entry, both are successful. Have I done correctly on the 2nd method???

What is the diff between limit and stop order???

[SanMiguel]

Originally Posted by mumpips

Hi Phil,

I am practising pending orders on GFT platform.

When I place 2 limit orders on long and short entry. Long failed.
When I changed limit to stop order for long entry & limit order for short entry, both are successful. Have I done correctly on the 2nd method???

What is the diff between limit and stop order???

This attached explains how you should set pending orders depending on the price action.
If you have the Sunday candle and you are placing orders they should both be stop orders since you are expecting price to breakout from the candle's highs and lows.
Stop Buy @ price.
Stop sell @ price.

Each of these orders then has a separate OCO order on it for stop loss and take profit. The stop loss is a stop, the take profit is a limit.

[phil838]

Originally Posted by mumpips

Hi Phil,

I am practising pending orders on GFT platform.

When I place 2 limit orders on long and short entry. Long failed.
When I changed limit to stop order for long entry & limit order for short entry, both are successful. Have I done correctly on the 2nd method???

What is the diff between limit and stop order???

I'm going to defer to SanMiguel's expertise on that one. My broker doesn't use that terminology so I never bothered to memorize which is which.

I do remember reading an article about it on a Forex4noob's blog once. Here's a link and an excerpt...

With a ‘Stop’ order, this can be a Buy Stop or a Sell Stop, you are looking for price to travel in one direction, activate your order, and keep going in the same direction; Continuing the trend. Think of it this way, you are driving your car down a road, you come to a ‘Stop’ sign, and then you keep driving in the same direction.

With a ‘Limit’ order, (Buy or Sell), you are looking for price to travel in one direction, activate your order, and then reverse in the opposite direction; Reversing the trend. Again, you are driving your car down a road and you suddenly come to a dead end, the road’s ‘Limit,’ you are forced to turn around and go back the way you came.

Pending Orders (CCI v2.0.1.7f) | Synapse's Forex Blog

[mumpips]

Originally Posted by SanMiguel

This attached explains how you should set pending orders depending on the price action.
If you have the Sunday candle and you are placing orders they should both be stop orders since you are expecting price to breakout from the candle's highs and lows.
Stop Buy @ price.
Stop sell @ price.

Each of these orders then has a separate OCO order on it for stop loss and take profit. The stop loss is a stop, the take profit is a limit.

Hi SanMiguel, thanks for the reply. I am rather slow on this, need more time to understand. The confused part is when everyone is talking abt limit order for this system, I need to put stop order for the pending orders.

Ok.....my brain is not working properly.......give me more time to understand this.

[mumpips]

Originally Posted by phil838

Pending Orders (CCI v2.0.1.7f) | Synapse's Forex Blog

Hi Phil,

Thanks for the link.....now I need to sit down and understand the logic behind it.

Will post more questions later...I guess......sinking.......

[mumpips]

Originally Posted by mumpips

Hi Phil,

Thanks for the link.....now I need to sit down and understand the logic behind it.

Will post more questions later...I guess......sinking.......

HI, I am alived again after reading the link, it's simple to understand and will practise to place orders again.....never say die!!!!