Where is the chart?
Yiehom,
The strat that RC posted here was originally posted by Ed Revy on the āForex Strategies Revealedā site
Hereās a link to Ed Revyās original post with a nice chart showing the set up.
Advanced system #5 (Trend Lines Breakout System) | Forex Strategies & Systems Revealed
I traded the method for a while, IMO itās good strat but I live in the US eastern time zone and struggled with being wide awake and able to think before the EUR/London open. :56:
Recently the average daily ranges have been noticeably lower than a year ago and GBP hasnāt been as volatile as it was a while back. Because of the lower ADR & volatility this strat might be harder to trade these days.
Having said that, Iād suggest you check out Edās original post, read through the babypips thread and then try demo trading the strat. Iāve also seen this method work with some success with AUD/USD & EUR/JYP.
good luck!
Thaks a lot
Forex Gump meta-bumped this thread via Twitter.
Me and my trading team played around with a version of this method back in 2007; looks just like Big Dog from forexfactory in '08. Ah, memories.
Thread Bump
Iāve been looking for a reliable London breakout trade and stumbled across this.
Iāve read the first 15 pages or so of this thread, and every other 20 till the end. I just skimmed through after the first 15 because it looked like most people were just simply drawing the trendlines incorrectly.
I have a couple of questions about this strategy;
First, where did the 90% come from? As far as I can see, with the stated R:R, it is far from that.
Second, as with every strategy, I would like to understand the fundamentals behind this, so I know [I]why[/I] I am entering a position. I understand that the range specified is as such because that is fundamentally the time that London typically makes its daily range. However, I remember reading something about market makers wanting to go towards the daily pivot somewhere (canāt remember where), and would be grateful if someone could clarify this.
Thank you in advance.
Good method, Iām trading it right now. But as any āuniverslaā stuff it requires adjustments for current market situations. For example, recently in my London Breakout Iām facing the situations when before hitting my TP the market swings back, triggers SL, and after several hours resches TP levels. Iām placing my TP about 130-150% of the asia range above/below the range levels and my SL levels are inside the asia range. Also Iām waiting for some movement in one or another direction - for example if market moves 30% outside of the Asia range it can be the trigger.
BTW forgot to say. It is also important to check the width of the Asia session. For example, I prefer to trade when Asia session range something like 30-50 pips (300-500 on 5-digit brokers).
I think whipsaws are nothing than f you presents from the market makers with no real fundamental bearing. Have you been managing to hit the advertised success of 90%?
I believe 90% win rate is almost impossible. Maybe in the short term - 3-6 months when the market conditions are ideal for the system - but in the long run the market is constantly changing, so you needto catch up and tune the system. And usually in the time interval - when market started to changed and you realized that it has changed - youāre getting most of the drawdowns. Plus it takes time for tuning - whic is also losses. Iāve been trading this method (not exactly this one but variation) for over a year and also performed the backtesting for prev 6 years on historical data - andIām getting something like 50% win rate. But with proper MM Iām getting the positive math expectarion so the whole system looks proiftable. BUT again! In the long run it is absolutely no way to avoid several months of losses. So we need to be prepared 
Thanks!
I think Iāll do a bit of forward testing without the 90% in mind and see where it goes from there!
[QUOTE=ārenatusmusic;766781ā]Thanks! I think Iāll do a bit of forward testing without the 90% in mind and see where it goes from there![/QUOTE]
Would appreciate if you report back your test results
Regards
Im no longer trading this as my style of trading requires a tight stop loss to maximise lots, which this doesnt give. I did a couple, but theu whipsawed on me unless I used the top of the swing high/low candle for a stop. That sometimes gave out a less than 1:1, and Im not really interested in anything under 3:1.
[QUOTE=ārenatusmusic;768066ā] Im no longer trading this as my style of trading requires a tight stop loss to maximise lots, which this doesnt give. I did a couple, but theu whipsawed on me unless I used the top of the swing high/low candle for a stop. That sometimes gave out a less than 1:1, and Im not really interested in anything under 3:1.[/QUOTE]
Oh right, thanks for your reply and good luck
Hi
I am interested in your London breakout strategy which you say has a 90% success rate.
Unfortunately, I cannot follow the rules you lay out.
Would it be possible to show your rules using a chart so I can see what one has to do
regards Ken
In the23rd post on this thread, the simplest explanation is you draw the trendlines from the first swing high and swing low within the 5 candle range to the most recent swings on the previous day ā¦ no need to wait for the full 5 candles to close.
Below I attached a chart for EUR-USD to show the basic concept, my chart is GMT+2 so the midnight candle is the second from the vertical lines (keyboard: CTR-Y). The 0900 bar is marked with arrows. You see not all days that the trade is clear and the significant movement during the day may actually turn out successful the other way. London Breakout is however a seminal trading strategy; most of the signals are like the one on 4th-jan.
Iām not at my computer during the necessary hours. Is there some way to turn this into an EA?