Maybe someone else can answer here but I often wonder if the whole R:R thing is valid for breakout trading. Trading a breakout, the trade will almost always go your way for a bit and if you win more than you lose then it pays for itself. I’m not sure I’d trail by 5 pips though…seems much to tight for me. hmm
5 pips is tight “agreed” but due to my personality i like trades to be over with quickly, personal choice that all.
i have another account that that has a longer term strategy running but for short term quick returns i prefer this one especially it don’t take much time once i have set pending orders that it all done for the day pretty much.
I don’t see any reason to run from that! I think it’s a completely valid strategy and appears to be working out well for you. I just hope the 300 you’re risking is a small enough amount of your account that you can survive a losing streak when (not if) it comes.
The real question is if you’re going to share the system with us?
draw to lines one at 19:00 London time and 1 at 05:00 London time
you now have your overnight time frame
draw 2 lines one at the highest price between the 2 overnight times and one at the lows
now count 6 pips above the highest price and set a pending order to buy there
now count 6 pips below the lows and set a sell order at that price
really what you want to do with your SL TP TS is up to you i risk no more than 30 pips only had 2 hits in 6 months at that figure more importantly you choice what TP TS you want, i go for small pips some might want to go for it
its important that these pending orders are set 5am London time otherwise you will miss out most probably and once the first trade has taken place i cancel the other, it makes my day short and sweat.
screen shot for today attached i use a ea that automaticly colors in the trading day leaving the overnight zone blank for me to draw the lines
Interesting, Short trades are much less on the trading nerves.
You say London time, is this GMT or Summer time?
Other words is Alpari UK using GMT or Summer time?
I’ve seen that strategy before. I think I read it on Forex Factory…
I backtested it a couple months ago with great results. Not 98% because I was using different SL and TP rules, but it’s profitable no matter which way you do it.
A word of warning though… It tested out great during 2008 and 2009 but during slower moving years the win rate dropped significantly.
So rake in the money with it while you can, just be looking for losing streaks that might signal that it’s run it’s course.
thats what i have heard i think if i had more than 3 or 4 losses in a row i certainly would look again at the strategy forex as we know is always changing it getting the timing right i there say like all strategies this has a shelf life to.
its great at the moment because we have so much movement
i also changed the time frame from the strategy on forex factory, i find i have more success taking the whole night as a zone as volume drops to almost nothing
I’ve been looking over my charts and doing some math and I really like this strategy! I do have one question though… Are you accounting for the spread in your 14.2 figure?
If so, and if someone traded this system with 2% risk he’s have had at least a 258% return in the last six months. That’s phenomenal!!
I’m going to do some further backtesting, and I’m going to start demo testing this tonight.
I have FXDD as a demo in Florida. I do not understand how to apply time zones to GBP/USD in my Eastern time. I would like to demo this one to.
Can you explain?