Im still a newbie in forex but ive been playing around with breakouts such as london breakouts. Ive stumble upon a breakout strategy which maybe most of u guys already know. But i need some help on EA to see the past result how the strategy goes.
The box for breakout i use is before 1hr before New York Market open.
Timeframe im looking at is 15min chart so it will be from 0700hrs-0745hrs GMT candle and 0800hrs will start trading.
I will take the high n low of that section add on a 10 pip buffer to avoid whipsaw.
I enter a trade with 2Lot.
Target profit i will use Fibo which setting is:
1.500
2.000
3.000
But the downside is when i lost a trade, i will reenter again with 4 lot
Target profit
1.500 - Close 2 lot which only cover half of ur previos lost
2.000 - Close another 1 lot to recover all ur losses
3.000- To get a few Pips as profit
Example :
Eur/Usd - 04/01/2011
High Candle - 1.34171 ( With 10pip Buffer)
Low Candle - 1.33669 ( With 10pip Buffer)
Diff Of 50pips
Enter long 2Lot @ 1.34171
SL @ 1.33669
Got Stop Out
2lot x 50pips = -100pips
Profit = -100pips
Enter short 4Lot @ 1.33669
SL @ 1.24171
TP1 (Fibo 1.5000)= 25pips @ 1.33418
Close 2Lot x 25Pips = 50Pips
TP2 (Fibo 2.000) = 50Pips @1.33167
Close Another 1Lot x 50pips = 50Pips
TP3 (Fibo 3.000) 1Lot x 100pips = 100pips
Profit = 200pips
Total profit 200-100Pips = 100pips
Im still new on this and no money management is involve in it so i would prefer some review n feedback for the experts. Ive not yet trade this yet but its seems profitable.
Thanks.
I was looking at it, I’m no expert but just to point out - in the example the actual risk was 300 pips, suppose the 2nd leg of the trade targets were not hit?
Hi to All…
The article is very informative and i am searching kind of information on the web when i came across this forum and now i am quite satisfied to become the member this forum.
I am beginner in this field of business and this discussion benefited me a lot.
You have worked out a very successful strategy.
Ive tried many similar strategies to the op. Personally i didnt find them very profitable over the long term but this might be different! Keep us posted on the results
sure will do but it doesnt guarantee it could be in profit in long term but u need to trust them… Im still doing paper trade to see how it goes… But at the mean time, im still trying to see how the money management can be include… Any ideas?
Enter Long [email protected] (with 10 pip buffer)
TP For Long Position are :-
TP1 1.34125 (37pips)
TP2 1.34500 (75Pips)
TP3 1.35250 (150Pips)
SL Hit @ 1.33000 Level
Profit = -150Pips
Enter Short [email protected] (with 10 pip buffer)
TP For Short Position are :-
TP1 1.32625 (37pips)
TP2 1.32250 (75Pips)
TP3 1.31500 (150Pips)
TP1 @ 1.32625 Hit… Close 2Lot = +74Pips
BE +1 @ 1.32980… Close Another 2Lots= +2Pips
Profit = +76Pips
For The Next Trade, I Will Adjust My 2Lot to 1Lot on my first trade and let it run to TP2 instead of TP1… And If SL Hit, Will Re-enter the trade with 4Lot again and the TP1 will still the same at 1.5000 Fibo to recover my loss for first trade and let another 2Lot run to get some profit if not will stop at BE +1.
On 14/01/2011, I Have a loss for the day with 2Lot But lets see if I enter the trade with 1Lot first… Then still with 4Lot to renter But BE will move to BE +10
High Candle With 10Pips Buffer - 1.33750
Low Candle With 10Pips Buffer - 1.33000
Enter Long 1Lot @ 1.33750
Stop Loss Hit @ 1.33000
Profit = -75Pips
Enter Short 4Lot @ 1.33000
Close 2Lot TP1 @ 1.32625 = +75pips
Close Another 2Lot at BE +10 = +20pips
Profit = +95Pips
Total Profit of the day = +20Pips
On 18/01/2011 We Have a loss also n lets see if we enter 1lot for first trade and re-enter 4 lot if sl hit
High 1.34300
Low 1.33700
Enter Short 1Lot @ 1.33700
SL @ 1.34300
TP1 @ 1.33100 = 60pips
TP2 @ 1.32500 = 120pips
1Lot Stop Loss Hit = -60Pips
