I am very encouraged by my breakout system
There are three components only
or One component and two filters
It is simply a breakout of Ichimoku
but not every breakout
I incorporate two other systems that act as
brilliant filters, also filter each other quite
often to avoid many fakeouts.
You enter when you have an arrow from both systems,
a breakout of Ichimoku cloud, the entry candle must be the
appropriate bullish or bearish colour, and critically the three
line Histogram must be confluent on each line.
It is a very mechanical entry.
There are some fakeouts, although often they
are just retesting Ichimoku.
After the initial inertia you can just trail the arrows.
this yields some really big moves, even on H1
the arrows aren’t intended to serve as as SL, but you notice
price rarely retracts beyond them, and when it does, that’s
usually the best time to get out. Initially, Stop is above the
cloud until the move gets under way, then its often quite close
but they are seriously incredilble filters!
both systems are extremely good, but only when you
have an arrow from each system breakout close to Ichimoku
do you really avoid the fakeouts
After the price has moved a reasonable distance, exit also
can be very mechanical. when arrows stop, you can usually
tolerate a bit of sideways movement before trend continues
when price moves up beyond the last arrow, your trailing stop
will take you out.
Unfortunately, you can’t automate this, or rather , I can’t. a standard
10 pip trailing SL will take you out prematurely, whereas placing your
stop manually 10 pips above/below last arrow will keep you in
until the end. I suppose if you will be away from the charts you
could place a 20 pip trailing stop, but that isn’t ideal.
I doubt that any programmer could get round this, unless he knows
why the arrows appear where they do, there is an algorithm governing this,
based on volatility, but I’m out of my depth on this
I think there will be losers so Lot size needs to be sensible,
probably 1% risk, but you can’t set RR, because you are
really looking for the runners, and there are a lot of them with this
This is really a price action system, but the algorithms from
both systems are a powerful confluence
certainly there is absolutely no need for adding any extra indicators.
In the example below, applying the above, would be a 166 pip win on
You wouldn’t need too many like that!
The only downside is the initial inertia, maybe 30 or 40 pip stop
might be indicated, and yes, it will hurt when its hit
and you may even get a spate of them
so you have to stick to very sound trade management
but it looks very promising.
My favoured pairs are still AUD, CAD, NZD, JPY
I doubt I will be trading anything with CHF in it
but I will be doing a lot of backtesting to see if
any pairs are less reliable than others
You will see exit in SC was 10 pips above last arrow, about
the same as waiting for two lines of Histogram to change
but on the far left, the trade before, there would have been
a waste of extra 20 pips waiting for Histogram exit.
I like the trailing arrow stop idea, in theory at least
all this is a work in progress
this entire thread has been that, still waiting for something to click
you always think, ‘this is it!’ if only I had found this strategy ten years ago
but it is a delusion I have fallen for too many times!
every strategy I ever concocted had great success at some point
every strategy fell apart shortly thereafter
This one is no exception. I am very capable of somehow sabotaging
I am now back on my hypnosis program, after a gap due computer
that is far more likely to be where any hope of consistent profits
is to be found