Sunday Breakout Strategy

You could also call you 4hr bar 1X and then shoot for a 2x take profit. Limit it to 3 trades for the week risking 1%, 2%, 4% until you hit the payoff. Just a thought.

Hedging involves selling and buying at the same time, this strategy doesnt do that, it only involves selling when the price hit the short position, and if it bounces back to the long position, u close the short position and open a long position, if the long position bounces back to the short position then you will close it and you will wait till the next week. Seems a pretty good swing technique for me and will be trying it.However, thread starter, you said you risk 2 % per trade, actually its 2x2%=4% if you close out both long/short at a losing position. I saw in your backtest results the most consecutive losts was around 6-7 losts, but 1 win make up for those small losses :slight_smile:

You’re right, technically it is 2% per trade but if you lose both trades for the week then it would be a 4% loss.

And yes, the system does have losing streaks, and a low win rate… Only around 30% of trades are winners, but the risk/reward ratio on the winning trades is so high the wins make up for the losers by far.

You do have to have patience with this system. Because it’s only 1 or 2 trades per week those 6-7 consecutive losses can mean you’ll go over a month without a winner. It’s rare, but it does happen.

Ryudox is right, it’s not a hedge because the long and short orders are not open at the same time. Long and short pending limit orders on a straddle are still ok, as long as one trade closes before the other opens.

What I do is after the Sunday candle closes I set limit orders for the two entries. Then I put alarms on my charts that go off at 2x profit so I can change my stoploss, and also about 20 pips before my TP so I can watch the trade and maybe get from extra pips if price action is good.

Thanks everyone for the comments, I understand now how the order placements work. Anxious to try it. d.

The Sunday candle has closed! Here are the trades for this week…

Long at 1.5947
Short at 1.5899

This week’s trades have a stoploss of 38 pips (I rounded up to 40), and a takeprofit of 240 pips.

If you got your orders set right at the close of the candle you should already be in a short trade. If not it’s only up +15 pips, not too late to jump in.

Remember to change the SL to breakeven at +80 pips! :slight_smile:

Hey. i can’t find the sunday candle with my metatrader4, i turned my period seperator on and it only shows 25th May candle…

Which broker are you using? I know for sure that IBFX shows it, and that Alpari does not, but I’ve never tested out any other broker’s MT4 charts.

Here is my current chart to compare to yours. Maybe your broker’s time zone is different than GMT time and the Sunday candle actually closed on Monday.

The orange lines mark the entry points 10 pips above and below the Sunday candle. The short trade is already 40+ pips up!!

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How do you get the breakout line on the exact breakout price? I cannot get the price scale to show .5947 or .5899, I just have to guess. Thanks.

If you’re using Metatrader you can double click your line to make it editable, then right click it, hit “Horizontal Line Properties”, and then on the Parameter tab you can enter the price of the line manually and it will move the line to that price.

thank you, d

This weeks short trade was a loser… -40 pips for me. :frowning:

I doubt the long trade will get triggered because of the strong resistance on the upper side, but if it does I’ll take it.

A lot of people will probably say it lost because of the holiday in the US and UK on Monday, but in my backtesting minor holidays don’t show to be any more risky than normal for this system. Major holidays, such as Christmas, are another story though…

Long side is coming~~ :slight_smile: maybe it will even out! good luck!

Long side was a loser for me… by one pip! :mad: Those of you with different brokers that didn’t get stopped out should be well above the 2x breakeven point and approaching the profit area.

Good luck to you all!!

Phil why is stop loss 38pips/40rounded up?
isn’t 1.5947 - 1.5899 = 0.0048 / 48 pips? (rounded up 50pips)

and one more thing do u have messenger? i would like to chat with you more about your strategy :slight_smile:

Thanks.

Because we enter at +10 pips above and below the high/low of the Sunday candle, but the stop loss [B]is[/B] the high/low of the Sunday candle.

So the long trade would have entered at 1.5947 with a stoploss at 1.5909. 1.5947 - 1.5909 = 38 pips.

You could probably trade the system with the stoploss equal to the opposite entry point for simplicity. I doubt it would make much difference in the long run.

I don’t use any type of messenger. I’m usually posting on several message boards about several different topics at once and hate getting interrupted by those things. :smiley:

I’m more than happy to discuss anything here on the forums though. :slight_smile:

Thanks,i have another question… see my pic below, well i scaled the chart into 1H chart and see the 2 circled day,
the question is… which candles are the first trigger your entry?

hehehe i think i just bug you here :wink:


From your pic it looks like you have a time zone problem, FurTrader. The Sunday candle should cover the time period from 20:00GMT to 00:00GMT. Some brokers, such as mine, don’t start their data feeds until 21:00 or 22:00, and that’s fine. Volume is really low at these hours so it doesn’t affect price much.

Here’s a picture of the week on a 1 hour GMT based chart. The symbols are…

Red vertical lines: The Sunday Candles (my broker starts at 22:00GMT, so there are only two).
Orange horizontal lines: Entry points. Upper line triggers long trade, lower triggers short.
Light Blue horizontal lines: Stoplosses. Upper line stops out short trade, lower stops out long trade.
White Arrow: Candle that triggered the short trade.
Blue Arrow: Candle that stopped out the short trade.
Red Arrow: Candle that triggered the long trade.
Violet Arrow: Candle that broke even the long trade. (Trade went higher than 2x the Sunday range, so we moved the stoploss to break even.)

Let me know if you’re still confused about anything and I’ll try to clear it up.

This week was a loser, but that’s no big deal. So far this year I’ve gotten 22 losers and only 6 winners!! But the risk/reward ratio on the winners is so high I’m up 918 pips. At 2% risk per trade that comes to an increase of 17.5% on my account balance so far this year, and the year’s not even half over. Not bad for a system that only takes 15 minutes per week to manage. :smiley:

Nice and clear :slight_smile: i like your system nice and clear… this system is very good way to start i think…