Breakout Strategy

Mickeyl177 · July 2, 2009, 1:29pm

Gustav,

With your 4hr and 15m strategies do you still trade them on high impact news days, (like todays NFP)?

Mickey.

gustav213 · July 2, 2009, 1:40pm

Not really I did look at the news and marked my trades but it was kind of not trending so only traded the AUDUSD for like 15 pips but I dont think it is good to trade these days and also witht eh long weekend coming since markets are kind of crazy.

Mickeyl177 · July 2, 2009, 1:57pm

Okay thanks for that.

A couple of other questions. If these have already been answered my apologies.

You say the timeframe you use is 7am - 9am is that currently Eastern Standard Time or Daylight Savings Time?

If you place your second vertical time line on the 9am 15 minute candle do you wait for it to close before deciding on the high and low points. In other words do you wait until 9.15am until deciding?

Thanks,

Mickey.

gustav213 · July 2, 2009, 2:03pm

Yes I use 7 to 9am EST

And I normally just pick the high and low at 9am but if that last candle breaks the low or high then I make that the new high or low, but normally that last candle doesnt make the line so it would depend on the day. But I would not trade the 915 candle.

Also I am experimenting with trade 6am to 8am and maybe getting into the market earlier but I will post those results later next week.

Hope this helps

Mickeyl177 · July 2, 2009, 2:12pm

I see so what would you do in the winter keep it at EST or move it back an hour when the clocks go back?

gustav213 · July 2, 2009, 3:01pm

Change the time, just make sure the GMT corresponds to 7am - 9am EST

kent123 · July 4, 2009, 4:19pm

Hey gustav taking a look at your four hour strategy looks pretty good, do you get stopped out alot with your 50 pip stop loss or does it prove to be sufficient enough. Also what is your win to loss ratio like. Thanks.

gustav213 · July 4, 2009, 4:22pm

Well really depends what you want, if your are looking for the massive 300 pip gains then 50 SL is too small, but I am normally good with a 100 pip gain so its normally ok, unless its a fake spike and it reverses. I have lately be doing more of a 75 pip SL just to be safe.

kent123 · July 4, 2009, 11:09pm

What is your win to loss ratio like, say you take 10 trades how many would you win and how many would u lose. Am guessing its a system that wins about 70 to 80 percent of the time correct me if am wrong.

gustav213 · July 5, 2009, 1:42am

I havent really kept a nice record but I would say yes 70 to 80 percent if you jsut trade blindly but if you look at trades and the trend seems off and weird and you dont eneter I would say more like 90.

kent123 · July 5, 2009, 10:08am

Do you trade this system with real money or are you still demoing for now. Also how long have you been trading it. Thanks for the great info.

gustav213 · July 5, 2009, 4:28pm

Demo trading been a couple of months and live for a month

kent123 · July 5, 2009, 7:21pm

what broker are you with, also does it matter if you use a chart without the sunday candle or does it have to have the sunday candle. Thanks

gustav213 · July 5, 2009, 11:57pm

I dont think it matters if it has the Sunday candle, I use IBFX

kent123 · July 8, 2009, 8:05am

hey gustave, quick question. Lets say you get a sell signal but it fails and goes into the opposite direction, will you close out the sell order and take a buy order or just wait till next sunday for the next signal.

Foreign_Exchange · July 8, 2009, 3:00pm

This looks like something that can be traded even with real money. Have tried this on many different currency pairs?

o990l6mh · July 8, 2009, 3:26pm

I assume that you’re all aware of this quite similar thread?

http://forums.babypips.com/free-forex-trading-systems/23601-sunday-breakout-strategy.html

It’s more or less the same Sunday candle breakout setup.

system · September 7, 2009, 5:57am

I am still confused with this strategy! Which one is to be set at between 7-9 am ET???
The 15 minute strategy or the 4H? And I assume it should be Monday and not Sunday as markets open 5pmET Sunday.
Clarify and be more precise, please
Thanks

01005379 · September 10, 2009, 12:54pm

gustav213:

Hey everyone I have been surfing around in these forums for some time now and seen some great strategies and some not so great. I recently decided to become a member and put up my strategy that has helped me a lot.

The best thing about my two strategies is that they work for people with jobs or going to school like me. The first strategy can be done in about 30 min once a week for a nice amount of pips. The other takes about 30 minutes max I have brought it down to about 15min in the morning Monday through Thursday if you get good at it and how many currencies you use. As you noticed I never trade Fridays, Ill look at the charts but normally the movement is too slow or unpredictable to trade safely.

[B]4H Strategy[/B]

The first strategy is by far the simplest one and its the 4H breakout. It has been discussed many times on these forums and while they all have there little variations they are essentially the same.

This strategy is meant to be done once a week and forget about it. Just set it up Sunday night and set your orders.

So when looking at the above screen shot of my MT4 you can see the strategy is very simple. It starts every Sunday night at 00:00 or the beginning of the week. If you are using Metatrader 4 you can just click Ctrl - Y and it will set up lines for you at the beginning of every week.

You then draw lines or a box like in ym screen shot the size of the first candle of the week. This will make the low of that candle your sign to sell and the high of that candle your signal to buy.

Very important I recommend adding a 5 to 10 pip buffer in the high and low so that you can prevent getting hit by a bad signal, since I have seen it happen before when the price just goes 1 or 2 pips below the low or high and a trade is started just to get hit with a stoploss when it goes the other way. Normally after 5 to 10 pips the price is going to keep moving in that direction.

My take profit is normally set at 75 pips and then at 150 pips for my second TP. This method has worked great and very few times has it not worked. My stoploss has usually been 50 pips.

so…

S/L 100 pips
T/P1 75 pips
T/P2 150 pips

I have been experimenting with trailling stops and using different indicators to help me decide when better to exit trades or keep going but that does take more interaction and leans away from the set it and forget it method I was going for.

I will soon post some indicators that I have been experimenting with to see if they work on the 4H charts. And I will also post my results with trailling stops.

This strategy works or should work on all JPY pairs but I ahve only tried it one four of them : USD/JPY, GBP/JPY, EUR/JPY, CHF/JPY

15Min Strategy

This is my second strategy and it does involve a little more interaction than my previous one. It is meant to take advantage of the breakout that happens from 7am to 9am during the New York breakout.

This strategy has been called the Big Dog strategy around this forum, and if you have read those threads you will get what this strategy is about. From 7am to 9am EST the New York Stock Exchange opens and markets go crazy. You will see a lot of price movement during and after this time period and you will take advantage of it.

Please look at the screen shot to see how it is set up:

As you can see this strategy is also very simple to set up:

1)two vertical lines one at 1100 GMT & 1300 GMT
2)two horizontal lines one at the lowest candle & one at the highest candle

This is all you need to do, then if the price breaks the low line then you sell and if the price breaks the high line then you buy.

That is the essence of this strategy, I have heard of people using Fib lines, etc. But I normally just shoot for 50 pips at my first T/P and 100 pips at my second T/P.

So…

S/L 50 pips
T/P1 50pips
T/P2 100 pips

I normally just try and get 50 pips unless I see some really good price movement I might push the T/P higher, but normally I am not at the screen to see how it is moving so I just say 50 pips is a nice amount.

When I was first using this strategy I was just cutting it at 20 pips but thats only if you want to be really safe. I am also experimenting with trailling stops and indicators for this strategy and will post them once I get some more news on them.

This strategy has been pretty good to me. It should work on most USD pairs but I ahve only used it on four of them: EUR/USD, USD/CHF, USD/CAD, GBP/USD

Here is another screen shot of a week or two ago so you can see how simple and effective this strategy is:

The circles are where you would enter the trade. I will post some more screen shots as soon as I can get some free time.

Hope this helps everyone out, they are by far my two favorite strategies and I hope some of you out there enjoy them as well.

Let me know what yall think of this.

Hello!

Which broker you use? What is the time of your broker?

Laurie · December 13, 2009, 12:31pm

I cannot locate the information on the tro tunnel on babypips. Can u help me locate it and also is there a meta trader file for it to download … Gonna get on your system tomorrow as it seems to be for me… thanks