Consistent & Accurate Breakout

Trading Systems Free Forex Trading Systems
21

very interesting system, also nice results, has anyone lost as yet? it seems that this is trend trading, and as the say the trend is your friend

22

Great and consistent results.
Very good for mini and micro accounts. I will try and see how I can scale it up since my broker will consider this scalping. Thanks for sharing.

23

Waiting for setup…:slight_smile:

Hoping for another great day

24

Sounds interesting. The rules are so simple that an EA could do the job. I will give this some thought…

25

Agree that this system is very interesting. Did I miss the answer to question of which daily close candle is to be used?

26

Now that I downloaded the open lines indicator I see that it is the 00:00 GMT daily candle.

27

Can someone tell me if my calculations are correct.

This system is targeting 80% win ratio, with risk 2x reward. SL 10pips TP 5pips

I am assuming 2pip spread so I calculate as below

WIN/LOSE    PIPS           PIPS-SPREAD
WIN         5              3
WIN         5              3
WIN         5              3
WIN         5              3
LOSE      -10            -12
          -----           -----
   Gross = 10pips    Net = 0pips

Which means this is a break even strategy?

28

Hmm the spread is not needed I think, since you will exit in -10Pips(spread added) and exit at +5Pips.
Lets see how this strategy goes

I had a winner today on audusd

1131×601

29

Hi absolute,

Why was the AUD/USD a valid trade? The daily open price was above the monthly open price, but below the weekly open price. Doesn’t the daily open price need to be either above both the monthly and weekly open price or below both the monthly and weekly price for it to be valid setup? :33:

30

Hi all,
for me is not a good strategy.
First of all becouse of the risk reward ratio… risk 2 to gain 1.
Second, I have backtested EURUSD from 1/1/2014 till April 2014. And following are the results:

1.jpg700×347 27.8 KB

2.jpg700×318 24.9 KB

3.jpg700×139 18.4 KB

Best regards
Nicola

31

So far I’m having great results, I use FXCM Broker to trade. Can you backtest other brokers?
to see if there is difference

32

It said Buy if price above Monthly and Weekly Open Lines.
My AUDUSD Chart on FXCM showed that the breakout price level above weekly and monthly lines

33

I think that is not a problem of broker… for what I know FXCM have large spreads and I have backtested with GKFX that has lower spread than FXCM. I applied with the simulator the strategy “at letter”… of course I had row of positive trades, but the unfavourable risk reward ratio do that in long term the strategy is a looser strategy. I see that you are trying this since few days, so is normal to have a row of positive results. Let’s make the sums in a month. For that reason I have decided to backtested for 152 days.
Nicola

34

EURUSD SHORT AND LONG 8.21.jpg700×346 26.8 KB

Did anyone trade the recent EURO break?
If so, are you holding your short or have you booked some profit, or all profit?

35

Guys you must know that backtesting doesn’t mean **** only forward testing can prove how good a strategy is

36

Yes I did. Then bought € at 1.3255, TP at 1.3280 but I missed the new break this morning, didn’t have any good informations and was not home. Too bad. I plan to buy again when 1.32200. But € will reach 1.30 soon or later, only bad news from here in Europe.

37

Hi Nicola,

To backtest this strategy within a metatrader I suspect you would need 99.9% modelling quality as this trade is dependant on per-tick information (rather than bar open/close)

I am not sure you have that quality of data from the screenshot of your mt4 strategy tester output

Having said that, I agree that the strategy needs caution

38

absolute,

While I applaud your successful trade, I don’t believe your interpretation to be correct. [B][I]waiting[/I][/B] stated his strategy is a [U]set and forget strategy[/U]. This would require setting pending trades at the daily open if the current price is in line with both the monthly and weekly open prices and not entering later in the day if price finally respects the weekly and monthly open prices.

But, maybe your interpretation is a more profitable modification…time will tell.

Great trading!

39

That is an easy blanket statement to dismiss results that do not agree with what you wish.

Back-testing mainly fails because : -

  1. [B]Curve fitting when optimising input parameters[/B]
    [I]Not relevant here, we are already given the rules and parameters which are easy to automate[/I]

  2. [B]Modelling quality [/B]
    [I] Poor data on fast-trading algorithms can give very wild variations in backtest results. (possibly an issue here, but fixable)

[/I]If fact with this strategy, where there effectively only 3x input parameters and with very simple clear rules mean that I would pay attention to back tested results run against quality tick data

Input parameters
1 Breakout pips buy/sell signal
2 TP pips
3 SL pips

40

I saw 5 possible trades at yesterday`s (Thursday) closing. They were:

  • EURUSD
  • USDCHF
  • USDJPY
  • GBPUSD
  • USDCAD

The results so far are: (I`m using a 3000 usd account, risking 1% of it on every trade.)

  • EURUSD: -30 usd.
  • USDCHF: + 16.39 usd.
  • USDJPY: + 14.42 usd.
  • GBPUSD: - 30 usd.
  • USDCAD: didn`t trigger trade yet.

Net profit as of now: - 29.19 usd.