Dear Friend!
I have been using this strategy from 2006. The system will work on Stock Market or Forex.
All You have to do if check historical charts for favorite stocks (major indices…) or Forex pair
( eur/usd is fine )
5 Minutes a day - 10-20 pips - Every day - 95% profitable trades
This is an extremely simple breakout system and it works as follows:
If previous day high is exceeded by 3 pips + spread = buy TP = 5 pips SL = 10 pips
If previous day low is exceeded by 3 pips + spread = sell TP= 5pips SL = 10 pips
Works on the principle that once a breakout occurs, its most likely to travel quite a bit in the direction of the breakout due to the sudden surge of market orders and other entry orders pilled up at these levels.
5 pips is conservative, the price may and does travel much further but this is a very easy way to make consistent profits - almost every day.
Due to the tight stops I use extreme amounts of levarage, I risk as much as 5% of my account per trade.
Stick to the pairs with the lowest spreads for obvious reasons.
That’s it! The system is very simple.
Actually, maybe this is not crazy. Although there is likely to be a pull-back after the break-out, its not really very likely to happen in the next few pips.
But I wonder if your arithmetic on SL and TP for pips total is correct?
Anyway, seems like Mondays might be a pretty lazy day for this strategy. Orders still pending but I’ll give this approach a try for a couple of weeks.
How often have you had both a buy and sell order hit in the same day?
I was going to cancel my pending orders at the US close - is this your timing also?
Frustrating. Waited all afternoon for the buy order to trigger. Price went through the buy level and hit the TP. Then I discover the order hadn’t triggered due to insufficient margin…
In the end, the firm’s customer service guy couldn’t work out what had happened, but I saw it was actually my error in calculating margin. So the trade was over the limits of my margin and was rejected as too big when price hit the order level.
The low levels of margin in trading across the EU now means I can’t just aim for one winner per day and sit back as the winnings roll in, I need to set smaller orders but across a range of markets. This actually won’t be a problem - as well as EUR/USD, other markets obviously also have pretty tight spreads - EUR/GBP, GBP/USD, USD/JPY, DAX, DJIA, FTSE100, Gold. Maybe more but this is enough.
I’ll be glad to get back to this strategy later in the week for a proper trial period. Cheers.
I’m starting to think the spreadbetting firm I trade through will not allow this strategy. Or at least it will not be as easy as I thought it would be to run through their systems.
Hi billionairewilly - Looking at how this would work best for me and my firm’s T&C’s, I don;t think this is going to be easy or maybe not practicable at all. But that’s not because the strategy’s weak,its because I’m accessing the markets via spreadbetting and the strategy would involve risks they wouldn’t be easily able to hedge.
im using an ECN accoun ICMARKET may be you should consider moving to ECN broker ,it allows hedging the strategy works well as you can see even for today 10 pips was achieved
Hi there am a beginner in forex trading but your strategy and guidance can be of great importance to me,is there any telegram chat you can recommend to me?
Hi,
I’m rather new at FX and haven’t mastered longer term yet. I’ve been looking for reversal candle setups and using TP-2 SL-5 for about between 30 to 50 pips per daily sessions (usually takes about 30 minutes) I will try this system with EUR/USA and GBP/USA to see if I can double the TP> I generally use 1 and 5 minute time frames.
When you say to buy or sell at 3 pips + spread from the high or low, do you mean to include the spread in your buy or sell stop order? Like say if the spread was 1.5 pips, then the entry would be 4.5 pips from the high or low? Or do you mean include the spread in the 5 pips take profit, meaning the take profit would be 6.5 pips?
Hey there.
I’m absolutely brand new to forex, hence why I’m on babypips. I’m doing the coursework to teach myself about it, so getting through it all slowly.
But could you explain this to me in the most common, street terms possible? Haha.
I am opening a demo account to practice trades and I might implement this strategy to try (if I understand it) to see how it goes before I start investing real money.
Thanks!
