Got the entire break. I have tipped to finish at 1.3020 area.
Hello nicola,great job on the back testing. I think this strategy fails because of the risk/reward ratio. Itâs very rare to win consistently if youâre risking more than youâre winning. I would imagine the backtestâs would be a lot different if the s/l and t/p were switched. Like 5 pip s/l and 10 pip t/p
Hi Waiting,
Some profit is better than no profit. Thank you for sharing this. I have one problem and that is downloading the Zip file containing the Open Weekly and Monthly Open Lines. Could you advise a reliable program to unzip?
Carningli
i have know idea what you just said, but i see back testing on past price movement as crap because every trade looks like a winner and tsting on live moving markets one can atleast see and make adjustments. i persnally donât trade 5pip strats, because i trade BO and for spot option i only try to catch 100pip movements,
Or they could have got 10% from three trades on Jannets speech last night
1st trade lost 2%,the 4% and 8% wins respectively. You and I know as simple as it is, its not that simple. Let them have their little system. Someones got to fund my nest egg lol.
To evaluate system, it should only be traded on Live market.
I think we can also set 10Pips SL and 10Pips TP (1:1) Risk reward and see if its more profitable than 5 Pips TP.
This week I havenât got a losing trade on FXCM Broker using 5pips TP.
-Abs
i uploaded a zip since ex4 can be uploaded here. You ca try
7 zip
win rar
-waiting
Monday Trades
EU Win+5
GU Win+5
UC Win+5
UJ Win+5
AU Loss -10
i got 2 wins
EURUSD
USDCAD
Cheers
Hi Charnwooduk,
I think you are absolutely right. You MUST add the spread to all BUY legs of the trade or the profit WILL be 5 pips minus the spread; this isnât a âletâs see how it works outâ kind of thing, it IS the way of trading, profit minus the spread. I think it is simple enough to add the spread to any trade to ensure that 5 pips profit is 5 pips profit.
Wrong!
For a buy order the opening Price is the Ask price and the closing price is the Bid price (the inverse for a sell order), so it already includes the Spread. So if you set a Buy Stop order to Open at 1.1000 and Take Profit at 1.1005, it will indeed be 5 pips irrespective of the spread.
The only time it can be different is when there is slippage, both during the opening and the closing and there are various ways to compensate it, such as adjusting the order after opening to correct for opening slippage and selecting a stop-loss and take-profit that takes into account average slippage.
Also, where spread should be considered is in the High Offset, since the Pending order will be opening at the Ask Price and you are looking at the High breakout on a chart of Bid prices, you should factor in the average spread on the High offset opening price of the pending order and not on the TP.
Your right 
+5 Yesterday on AUDUSD
other pairs no setup
I think 7Pips SL and 7Pips TP is better. its 1:1, and only needs at least 60% win rate to be profitable. What do you think?
I would assume that the trades being taken are Pending Orders so, as you mention in your last paragraph, you DO consider the spread. If you donât consider the spread when placing a Pending Order on a trade with such small TP, you will lose half the profit.
EXAMPLE: Most people will look at their chart, see that the GBP/USD high was at 1.6567 and will place their pending trade at 1.6568 (high + 1 pip, as per this strategy) with a TP at 1.6573. But the price they are looking at on the chart is the SELL price; the BUY price is maybe 3 pips (spread) HIGHER so these traders would get in at the BUY price of 1.6568, NOT the sell price they are LOOKING AT, which is 3 pips higher than they want. Their pending order would include a TP profit of 5 pips, so in this example, 1.6573âŚat the SELL price which is 3 pips (spread) short of a 5 pip move.
All anyone has to do is click Buy At Market and see what appears on your chart. You will see a line and price exactly the spread HIGHER than where price currently is on your chart. So for a 5 pip profit, price must move up the spread then 5 pips more to make you 5 pip profit.
Having said all of the above, this is still an interesting strategy and I will definitely be taking a close look at it. I think there needs to be a 1:1 R:R, though, as mentioned by other traders, and the 7 pip SL and TP looks promising.
Wrong again!!
You have not read my post correctly and donât seem to know how pending orders work (assuming you are using MetaTrader).
In your own example, if you set your buy pending order to be opened at 1.6568, it will be triggered by an Ask Price (not Bid Price) of 1.6568 (Bid price being lower) and the TP will be hit with the Bid Price of 1.6573 (Ask price being higher). Since it was opened with the Ask price and closed with the Bid price, Spread is already in play and the profit will be 5 pips irrespective of opening or closing spread.
Even if the opening price was incorrectly defined by the trader, the fact is that if the TP is Hit, it will always be 5 pip profit no matter how wide the spread is. All the spread can do is make it difficult or impossible for the TP to get hit, but if it does get it, it will be 5 pips no matter what.
Spread will not change that, but slippage can! Slippage is the biggest problem here.
But the fact remains that regardless if you are in a buy or sell, price has to move a total of 7 pips on the chart to get your 5pip TP (assuming 2 pip spread)
I want to know if this strategy is aiming for 5pip gross or 5pip net profit.
On a buy trade, if you are trading the breakout from resistance you need to be aware that a pending order for a currency with a large spread might be activated BEFORE price has actually broken out from what we are watching on the chart (which is only showing BID price)
Similarly you need to be aware that with this strategy, if you are in a sell trade against a pair with greater than 5pip spread, your Stoploss will be hit the instant you open a trade
EDIT: I decided to delete the entire contents of this post, because I think it will just spark an unnecessary âflame warâ. Suffice to say, that some of you understand this strategy and others do not. Please note that I am not defending this strategy as being good (or bad for that matter)! For those that follow me on that OTHER thread, you already know what my opinion is.
Thanks and good trading to all!
Yes, this is a nice thread and can be profitable. Forward test is key and we can share results.
With the TP an SL, to put it simple,
in trading 1 Lot in an USD account,
Close trade either at -70USD or +70USD. Net
Solves the problem