Hi all. I’ve been looking into range based Asian breakout systems as I’ve recently met up with an ex-professional trader who used to trade the Asian markets. He’s given me a few ideas so after some research I bought this the other day Profitable Forex Breakout Trading Strategy | MetaTrader Indicator | London Forex Open. I had a chat with the guys who run the site who were pretty helpful and honest and the posted results seemed to check out.
I was more interested in the indicator itself as I think it can probably be used for quite a range of strategies in the market including various overnight range strategies I’m looking into. Although it’s been around for a while there is not too much about the system on the net. Wondering if anyone else has any experience of it.
While I’ve been playing with the indicator I have also been using some of the basic settings supplied for the GBPUSD and I must say it does seem to have a hit a bit of a run… been having a pretty good month trading of which quite a part of it has been this system!
Ok so I think I got the hang of the system ok as I seem to be getting simliar results to those posted on the vendors site ok. I had go on a couple of other pairs this week as well, managing to book a few pips on the EURUSD. Has anyone else tried trading early morning breakouts on this pair? There seem to be a lot of strategies that focus on the GBPUSD but the Euro also looks pretty prime at this time?
Hi Bintcrusher. Yes I’ll try to remember to sort out some screens of the trades taken and get them posted here.
Here are my results for October so far -
GBPUSD
4th +120
6th -120
7th +60
13th +60
I also started trading the EURUSD from last week with the main strategy and this has got off to a good start -
11th +60
12th +120
Ok so this is only a snapshot but it does seem to have a pretty good risk reward ratio and also has been reasonably good at keeping out of the volatile spikes. I think you could also apply a bit of your own analysis to the signals generated to maybe tweak some more profit out here and there. A couple of these moves could have been left to run a little further.
Finally I get round to posting a screen shot for the system! Today was a good example. Speaking with the guys over at the site (who have been good at dealing with constant questions!) they are happy for me to post this. However they did ask that I remove the actual trade details from the indicator.
These are the entries and targets for the 3 strategies that can be traded and are normally display under the other info on the right of the screen (you can turn them on or off depending on which strategy you are trading).
I have however drawn on the lines - the top one above the range is the suggested stop loss.
The next three are the profit ttargets for each of the three orders placed and the final one (bottom of the screen) is the target if you are following the aggressive strategy. Personally I am not trading this but it would have worked out today if I had been. :34:
However looking back at the results I think the profit targets are quite high for this and it seems to hit breakeven a lot. You can adjust the targets you aim for in the indicator but I guess if you drop them too low then you are simply doubling up the main strategy so I can’t personally see much point.
I also realise that I haven’t posted my latest results. October booked me a bumper 500+ pips, and therefore November was not quite so impressive. I missed out on a few days of trading and came out +100. I’m trying to be more consistent with the strategy this month and have traded each day (unfortunately although it only takes 5 mins to set the orders often the demands of the kids prevent me from even doing this in the mornings!).
So far November has been good and I’ve had two full winners at +240 and a false breakout which booked me +45.
Stood still in a lot of respects but still looking good for the month again. A losing trade on the Conservative strategy and a winner and a loser on the Advanced (false breakout). However this morning booked a winner straight out of the blocks to cancel out last weeks loss.
Total so far for the two strategies has bagged me just over +350 pips this month.
Total for the month- +255 pips (+300 from main strategy and -45 from False breakouts)
I was also lucky in taking a couple of positions on the EURUSD and EURGBP this month with small stakes that came in for profit.
Although I have not been following either of these pairs properly they are subject to the same sort of breakout at this time of day so I think my 2012 resolution will be to log some proper results on these and other pairs.
I must admit to being pretty happy with the results I have been getting with this system given the markets at present. :59:
Total for the month- +255 pips (+300 from main strategy and -45 from False breakouts)
I was also lucky in taking a couple of positions on the EURUSD and EURGBP this month with small stakes that came in for profit.
Although I have not been following either of these pairs properly they are subject to the same sort of breakout at this time of day so I think my 2012 resolution will be to log some proper results on these and other pairs.
I must admit to being pretty happy with the results I have been getting with this system given the markets at present. :59:
Total for the month to date -40 pips (-120 from main strategy and +90 from False breakouts)
I’m not too sure if I should carry on with trading this right up until Christmas as maybe the markets are going to get too choppy at this time of year?
Historically the performance looks quite good in December over the past couple of years so I may trade with smaller positions to keep an eye on performance.
Hi all. A late start to my posting in 2012 but a very happy New Year to everyone.
I’ve been spending a lot of time looking at trading systems over the break and have been looking to come up with a good plan of attack to build up my profits earned from the markets.
I’m currently evaluating a couple of other systems at present (on test) which are looking promising and I may decide to start trading them for real if the results hold up.
In terms of trading I only started again this year from the 9th Jan. This was mainly due to personal commitments but also as I wanted to miss out what can be ‘thin’ markets at the start of the year. And of course the main focus of my trading has been the London Forex breakout indicator.
I took the decision to increase the amount I was placing on each trade and also to open an account with IG Index (UK spreadbetting company). this is suggested in the manual as it allows you to set up trailing stop facilities easily and also offers a lower spread than I was getting from my MT4 broker.
So now when I get a signal from the indicator on Metatrader I set up the order in IG and it manages itself.
So far this month I have done well from this decision booking a run of winning trades which have helped to move my IG balance forward.
These are the trade results so far -
10th Break even - a signal but the market failed to follow through so the position closed out at break even at end of day
11th +45 False breakout signal
19th +120
20th + False breakout signal
No probs. It would be good to find someone else who trades it!
As a quick update I had another false breakout winner yesterday (+45pips)
Today a long signal on the main strategy. Its reached the first target (+20 pips) with the second and third targets still open (both on a 20 pips stop loss at present…)
10th Break even - a signal but the market failed to follow through so the position closed out at break even at end of day
11th +45 False breakout signal
19th +120
20th + 45 False breakout signal
25th + 45 False breakout signal
27th + 45 False breakout signal
31st +20 (note I only opened one order here - not sure how but should have been +60 if I had traded correctly!)
[B]Total: +320pips[/B]
A totally clean run this month and a nice gain (I only started trading again from the 9th Jan).
I’m not so silly to think every month will continue in this vein but there have certainly been a lot of false breakout signals this month which have helped the results. The current indecision in the markets could well be helping.
One thing I have noticed is that the false breakouts sometimes move way beyond the 45pip target which seems a bit conservative. On a couple of occasions I have been around to check the charts and have adjusted the stop to let them run on a bit further to book a few more pips.
All in all a good start to the year with this one.
I realise I didn’t post here last week with the updated results for Feb. So as it doesn’t look like the order placed is going to trigger this morning I thought I’d take the time to post an update.
Here are the results since the beginning of Feb:
1st -45 False breakout signal
2nd -20
3rd +45 False breakout signal
6th +45 False breakout signal
8th -120
14th +45 False breakout signal
[B]Total so far for Feb -60 pips[/B]
Yet again I note the false breakout strategy seems to be the more solid of the strategies in the current environment. Looking back over past results this seems a strategy in itself and has been pretty much consistently profitable for me since trading. Its also easier to place as no management of the orders are required with just one simple order (stop and take profit level) needing to be set up. However the high profit on a winner on the standard entry could soon see the profits jump up, so I’m going to continue following the strategy as is for now. :22:
I guess all I can say is that if I can use it then anyone can!
In seriousness though, unlike a lot of systems you don’t have to sit waiting for something to happen. I check the chart just before 08:00 and then place any signal that has been generated. That’s pretty much it. If the order is not opened by 10am then you just close the order, otherwise leave it to run to its natural conclusion.
The manual is straightforward and covers the set up. The only thing that can be tricky is setting up the indicator first off as you need the first bar outside of the range on the chart to be the 08:00 London bar. From what I understand the settings you use will depend upon the time offset used by your broker.
This is covered in the manual but a quick email to support got his sorted out for me. :53:
I’ve been pretty busy of late but still been able to trade this in the mornings.
Despite being down when I put up the last post Feb turned into another winning month.
[B]Total for Feb +250 pips[/B]
This month has start quite quietly with a lot of ‘no signal’ days… then bang a full loss on the Conservative strategy.
However a +60 profit this morning (which reminded me to post here) has brought me back to -60 pips so far this month. Still early days. I’ve racked up a lot of pips from this system so far so I suppose its only fair to give a few back once in a while.
