First of all, I got this idea from pipwoof post: 301 Moved Permanently
[B]Pietro’s GBPJPY Daily candle Breakout strategy Journal.
Rules:[/B]
-
Daily Chart
-
Buy 3 pips above last day’s High + spread
-
Sell 3 pips below last day’s Low
-
Take profit = 70 pips - spread
-
Stop loss = 30 pips + spread (5% risk per order, maximum daily loss 10%)
Leave both orders run until they hit TP or SL. If one or both orders are not triggered that day, just cancel the orders a few minutes before the daily candle closes and place new orders next day (daily candle closes at 5pm NY time). Do not close the other order when one gets triggered.
I am backtesting this strategy manually on a 30 min timeframe respecting the 3 pips buffer (some trades are tight)(no spreads to make the maths easy) at 70 pips TP and 30 pips SL.
So far these are the results:
pips % capital gain/loss
December +230 + 21%
November +480 + 69%
October -60 - 17%
September +70 - 11%
August +440 + 48%
July +560 + 91%
June +520 + 90%
May +260 + 21%
April +290 + 35%
March -360 - 39%
February +150 + 9%
January +590 + 111%
2016 totals [B]3170 pips + 1850%[/B]
Now, I know this is unrealistic and I am sure things will not go as well as the back test, but let’s say if had $10000 on a live account and started trading last January, risking 5% per trade, today I would have around $185,000.00
So far the most consecutive losses is 8 losses (8 consecutive losses would mean a loss of around 24% of your account capital from the moment you have the first loss). The most consecutive wins are 5. 1 win alone means a 10% capital gain, now think about that, let’s say I have 3 consecutive wins (which happens often). $1000 + 10% + 10% + 10% = $1330, 33% capital gain from the moment you have your first win.
The winning average varies from 30% and 60% which is not a lot but I am confident that the risk/reward pays off in the end of the day.
I will test this strategy for the next few months and finally if everything goes well, trade live.
I will do the best I can to update this journal daily and do not miss out any trades. I work full time as a painter and have limited time to work with Forex.
Daily candles closes at 7am here in Australia so I place or cancel all my orders as soon as I wake up. Most orders will be triggered during the London (6pm here), which is great for me as I am back from work so I can watch it closely to develop a better understanding of how GBPJPY flows.
Feel free to leave comments, suggestions or ask any questions.
