Sunday Breakout Strategy

[o990l6mh]

Originally Posted by MattW2009

Phil said



I've scrolled back through my 3 months of data and had a positive result.
Every BE and winner on Phil's rules would produce a winner, every loser would likewise be a loser. At 1:2 Risk to Reward I would imagine it would prove profitable over a longer time period

Damn! You're right. Didn't think about the Sunday candle issue. Sorry about that.

[Rei]

Originally Posted by MattW2009

I've scrolled back through my 3 months of data and had a positive result.
Every BE and winner on Phil's rules would produce a winner, every loser would likewise be a loser. At 1:2 Risk to Reward I would imagine it would prove profitable over a longer time period

Hi,
Any idea what your updated win:loss ratio is?

[MattW2009]

Originally Posted by Rei

Hi,
Any idea what your updated win:loss ratio is?

For the period from 5th April to date, trading the second break in the opposite direction if the first failed, I count a probable 12 wins to 6 losses. I say probable because I merely looked at the 4hour chart not the 1H.

[phil838]

Here are this week's trades:

Long: 1.6321
Short: 1.6267

The trades have a SL of 44 pips and a TP of 228.

Good luck and I'll be back next week!

[mumpips]

Originally Posted by phil838

Here are this week's trades:

Long: 1.6321
Short: 1.6267

The trades have a SL of 44 pips and a TP of 228.

Good luck and I'll be back next week!

Hi Phil,

For long entry, I have add in the spread on my stop buy, do I need to do so on the TP or remain no change?

No worry, you may reply me after your vacation. Enjoy!

[s050399b]

TP = 228
Long Entry = 1.6321 + spread

Long Entry TP = Long Entry + TP

So I think it already has been added?

[bulhata]

Originally Posted by phil838

Hi guys! This system has been very profitable for me so I thought I'd share it.

I've traded this live since late 2008, and I've also backtested it manually from Oct. 2004 (as far back as my charts go) to the present day and it has remained profitable all 5 years!!


The Sunday Breakout Strategy

Pair: GBP/USD
Timeframe: 4 hour
Indicators: An ATR(14) on the WEEKLY chart, or use the attached indicator on your 4H chart.

Your broker's charts MUST include the Sunday 20:00GMT candle for this system to work. Some broker's don't put this candle on their charts so make sure yours does! If not use an IBFX demo account, they include the Sunday candle and the demo never expires.

Find the Sunday candle:
- On a 4H chart find the high and low of the Sunday candle. If you're backtesting and using MetaTrader turn on the Period Seperator to make finding it easier. Draw a line 10 pips above the high and 10 pips below the low.


Entry:
- Go long on upper break of the line.
- Go short on lower break of the line.

SL:
- For long trades the SL is the Sunday candle low.
- For short trades the SL is the Sunday candle high.
- Set SL to break even once your profit has reached 2x your stoploss.

TP:
- Your TP is ½ of the weekly ATR(14).

That's it! A simple system that only takes 10 minutes per week to manage!!

I've gotten 1448 pips using the strategy since I started, and backtesting shows a gain of 7907 pips since Oct. 2004. If you actively manage your trades with some S+R lines, trendlines, and price action you could probably make a lot more than that! I've included an excel file with my backtesting results and money management projections.

Also attached is an indicator to show you the weekly ATR(14). Just remember your profit target is HALF that number.






EDIT: s050399b has made an excellent indicator for this system that computes all the entries, stoplosses, etc. You can find the latest version on this post.

Hi,
Phil thank you for your post.
I have a newbie question - what time and day are best to draw the lines for this Sunday Breakout Strategy in order to get max pips?

Thank you

[mumpips]

I am using IBFX for charting and tried to place pending orders- buy stop & sell stop, it was prohibited as system called it as hedging?

But, when I use GFT platform,pending orders are fine....funny!

[s050399b]

Originally Posted by mumpips

I am using IBFX for charting and tried to place pending orders- buy stop & sell stop, it was prohibited as system called it as hedging?

But, when I use GFT platform,pending orders are fine....funny!

I think there's a rule on US brokers: no hedging and can't have 2 open trades or something? Go with someone else I guess......

[s050399b]

Originally Posted by bulhata

Hi,
Phil thank you for your post.
I have a newbie question - what time and day are best to draw the lines for this Sunday Breakout Strategy in order to get max pips?

Thank you

To draw this Sunday Breakout, the lines should be drawn religiously at GMT0 Monday - you can check the time/date in your region at timeanddate.com