GBP/USD easy breakout system

Trading Systems Free Forex Trading Systems
1

This system is a very simple breakout system for the GBP/USD currency. It is very profitable based on its simplicity.

You will need to download i-ParamonWorkTime custom indicator.
Download it here (scroll down and it will be on someones post)–> 67.192.173.145/showthread.php?t=103682&page=11

Then open up GBP/USD on M15. Set the indicator to Begin1 14:00 and End1 16:00. Now there should be a box within that timeframe with 9 candles.

Now insert a horizontal line of the highest point of the last candle. Set a buy stop order of this value, with a 20 TP and 30 SL.

Your TP will hit about 90% of the time. If you have any questions feel free to ask.

*NOTE only place buy orders

2

14:00 to 16:00 ? what time zone? GMT?

3

Hello!

Could you please post a screenshot of this strategy? TIA!

4

Talon, GMT+2. You really dont need to box the 14:00 to 16:00 but I do it just to see the breakout and analyze the range. So basically you just need the high of the 16:00 candle.

5

[QUOTE=bnbb2004;147715]Hello!

Could you please post a screenshot of this strategy? TIA![/QUOTE]

The screenshot is posted now.

6

Isn’t this the same as the Big Dog strategy posted at FF?

7

so when you say 14:00 to 16:00, that would be 12:00 to 14:00 GMT ?

8

Thanks for sharing this strategy. But I have a couple of quick questions for you:

Why do you only place buy orders?

Are you sure this works about 90% of the time as I scrolled to sept (10th-15th) and the SL would’ve been hit numerous times? :frowning:

9

fxhustler,

You’re basing this on the [B]Johannesburg, South Africa, time zone GMT+2[/B]. Is that correct?

That translates to:

[ul]
[li]2pm-4pm Johannesburg
[/li]
[li]1pm-3pm central Europe
[/li]
[li]12pm-2pm London (GMT)
[/li]
[li]7am-9am New York
[/li]
[li]etc.
[/li][/ul]

Is this correct?

10

You wait for that last candle to close before placing the trade ?

How long are you leaving the trade open if it doesn’t get triggered for a while?

11

Yes, only I am using buy orders based on the last candle.

12

Yes, this is correct.

13

Yes, I wait for the last candle to close before placing the trade. I leave the trade open until 7am New york time (14:00)

14

7am New York time would be 22 hours after you put on the trade. Is this correct?

15

As I understand it, the key candle in this strategy is the 9am-9:15am EST (New York) candle on the 15-minute GU chart.

A long trade is placed after the close of that candle, which means at 9:15am EST.

So, for traders in other time zones, here are the key 15-minute candles utilized in this strategy:

[B]15-minute candle ------ Location[/B]

03:00-03:15 NZDT – Wellington, New Zealand

01:00-01:15 AEDT – Sydney, Australia

23:00-23:15 JST — Tokyo, Japan

22:00-22:15 SGT — Singapore

22:00-22:15 HKT — Hong Kong

22:00-22:15 WST — Perth, Australia

19:30-19:45 IST ---- Mumbai, India

17:00-17:15 MSK — Moscow, Russia

16:00-16:15 SAST – Johannesburg, South Africa — times specified in the original post

15:00-15:15 CET — central Europe

14:00-14:15 GMT — London, UK

09:00-09:15 EST — New York, USA

08:00-08:15 CST — Dallas, USA

07:00-07:15 MST — Denver, USA

06:00-06:15 PST — Los Angeles, USA

16

I tried it on demo this morning, just got stopped out -30
not an auspicious beginning :stuck_out_tongue:

can’t tell with just one try though.

17

I guess we could say, Don’t try this 2 hours after a major news event.

Here’s what happened to you if you traded this strategy today:

The key candle (14:00 GMT candle on the M15 chart) made a HIGH of 1.6602 bid (on my chart, yours may be slightly different), and closed at 1.6574.

You placed an entry order (a buy-stop order) to go LONG at 1.6602, with a SL at 1.6572, and TP at 1.6622
(I have neglected the pipettes for convenience).

Your entry order was triggered on the 15:30 GMT candle. The price got as high as 1.6618 bid, then retraced.

You were stopped out on the 16:30 GMT candle for a 30-pip loss.

We need to persuade SanMiguel to run an analysis of this strategy to see whether the win-ratio really is 90%.

Clint

859×796

18

yeah news plays havoc with lots of strategies. I’m not trading for real today or tomorrow.

Clint what would make this particualar candle so special ? Could you pick any random candle / time of day and try this strat?

After all it’s not like the London break where you’re going from the night time lull into some real active day trading is it?

I may be able to do an analysis of it, I found a neat way of analysing past history. I’ll give it a try tonight.

19

Hey, Mike

There is a compelling logic to this particular time of day. The U.S. market opens at 8am, but it has its highest volume / highest volatility period between 9am and noon. Assuming that a surge in volume/volatility will be accompanied by a surge in price, this strategy attempts to catch that price surge.

About a year ago, I attempted to figure out how much forex volume was being traded hour-by-hour worldwide, but I just didn’t have enough information to generate hard numbers.

I did come to the conclusion that the bell-curve of trading volume in the U.S. is skewed heavily toward the morning hours. In the afternoon, things taper off rapidly. And it appears that the trading volume bell-curve for Europe and the U.K. (taken together as one market) has two humps: volume surges in the two-three hours immediately following the Zurich open; then, volume declines slightly until the New York open, when it surges again. A graph of forex volume in Europe/U.K. would be somewhat saddle-shaped. The second surge out of Europe/U.K. reinforces the morning surge out of the U.S.

Europe/U.K. (including Ireland) overall accounts for 56% of total worldwide forex volume. And North America (U.S., Canada and Mexico) accounts for 18.5% of worldwide volume. Combined, Europe/U.K. and North America account for 74.5%. This volume is spread over the 24-hour day, but it’s not spread uniformly.

Volume surges in the early hours of the European session, and in the early hours of the U.S. session, providing the opportunities we try to capture in breakout strategies like this one, and the various “London” breakout strategies we have been using.

That was the long-winded answer to your question. The short answer is that there is a good chance that the 9am EST candle will precede a nice price move. And, no, a candle chosen at random probably would not serve as well.

Clint

20

Interesting you would mention all that about volume. Something I’ve noticed and I guess it’s pretty obvious are the peaks and valleys at regular intervals in the volume indication on metatrader. It’s tick volume for that particular broker, but if it’s a big reputable broker then it must be a representative sample of the whole. Then I realized there must be peaks during the overlap of markets such as the Tokyo / London overlap and the London / NYC

I tried using Excel to analyze this breakout strat, but it’s too cumbersome for that. Maybe your idea of getting SanMiguel to do a simple EA to test it would be better.

first peak roughly 8am gmt London. Second 14:00 gmt, third peak, London closed. and NYC still going, not really a peak, more of a lower plateau. Fourth peak, Tokyo. The valley between the two big daily peaks is about 11:00 gmt Maybe a good time to look for a breakout? Notice price in that area, is it low volatility between volume peaks? Just something to think about.

That’s a 15M chart by the way.

volume.jpg700×524 24.4 KB