Simple Daily Breakout System

Trading Systems Free Forex Trading Systems
1

Hello everyone !

I’m here to set out an improvise version of Daily breakout strategy. I know there’s ALOT of Daily Breakout Strategies. But as for me, I improvise my own so that I can take the opportunity of grabbing pips when there’s available. Its not that risky in my own opinion. Hold your thoughts and try it out. Backtest it and compare first. Then we can share opinions together.

Ok here goes:-

Time frame: Daily only

Buy @ Previous bar high
Sell @ Previous bar low

Take profit : 20pips
SL: Now here’s where’s the trade management comes in.
Set your stop loss at Previous Bar High when your going SHORT. or
Set your stop loss at Previous Bar Low when going LONG.

This stop loss is temporary !
Once price trigger either Buy or Sell pending order, switch to 4HR time Frame.
If price hits your TP, congrats ! If not, wait till the current 4HR bar to completely form and when the next 4HR bar starts, move your stop loss at the previous 4HR low/high + 5pips. And continue to trail your stop this way until price hits your TP or hit your stop loss OR close your position before a new daily bar starts.

I’ve only started to backtested it on EUR/USD.

This method good for me as Im working and will only need to monitor every 4HR if price have not reach my TP/SL. Im also looking to set a price email alert when it triggers Buy/Sell order. Sometimes it doesn’t trigger, which means an Inside Bar have formed.

Guess thats it. Try it out !

2

Nice setup,
simple and complete… TP and SL are clear.:slight_smile:

are you already trade with this idea? if yes, how long?
just want to know… because i working on this daily breakout too (not complete, still need more evidence), but different system.

regard, riyan.

3

nice system; already using it but with 10 T/P not 20

4

And what’s your S/L eliescuadrian using 10 pips as your T/P

5

sometimes 10, sometimes 15; depends on the volatility or news calendar for the day

6

Thanks, but i suppose 10 is kinda too tight S/L. What are your results so far, like the win%?

7

yes it is, but it depends on your money management; this way I’ve made 30 pips on July, 60 on august, 0 on September and 30 on October, it’s not much but it’s OK for me;

Cheers

8

The system has a awful reward:risk ratio thus a losing day can eat profits of many winning days.

9

how have you guys got on trading this system and what pairs do you use?

10

Can anyone provide screenshots of their experience with this strategy?

11

Hi guys babypipsjbenz has created an EA for this strategy:

Simple_Daily_Breakout_ea_v2.zip (3.51 KB)

I have it running here on my myfxbook account for those interested:

https://www.myfxbook.com/portfolio/simple-breakout/415535

Also this EA came from Lovac’s idea to create an EA for this strategy.

Thanks Lovac and babypipsjbenz !!

12

Disclaimer, not my idea, came from Lovac’s suggestion to make ea from this:
http://forums.babypips.com/free-forex-trading-systems/47624-simple-daily-breakout-system.html

13

Yes this was my idea to create the EA as i am also trading this daily breakout for long time with good results

14

wowW… Sounds interesting. I’m breakout trader too. Usually i’m usin continous breakout. But sometimes usin reversal breakout, depend on situation. Breakout more suitable for trader who have another job in their life :slight_smile:

15

If you don’t mind me asking what other breakout strategies do you use ?

16

i use SR pivot point and fibo for determining my breakout zone :slight_smile:

17

Are you using daily closing price or daily highs as your breakout point ?

18

if your system is mechanical and you’re interested, we can try to develop EA for your method to see what happens.

19

thanks for ur offer babyipsjbentz. But i prefer usin manually first. Then go hybird trade after i fix my breakout. Yep, with my breakout, i trade mechanically. I setup my trade during monday-wednesday. Have expired until middle of friday. All entry usin pending order. so far this method gave me winning percentage around 67-85%. Without interfere my current job ^^
But i had lot of filter before setup each trade. Like currency crosses analyse, news that will come, and my friend oppinion ^^

oh yeah, normally, i set my entry both on my breakout. continous and reversal. But often continous depend on situation (smaller high reward-risk ratio). If reversal have good signal, i choose only reversal with high reward to risk ratio.

20

Well, the judegement you use for your trades (news, crosses, and experience/opinions) are probably what make your trades profitable, and also what cannot really be put into EA. So, even if I wanted to, could probably not make into an EA.

Congratulations on your profits.