SIMPLE Asian Breakout Strategy 100% gain in the last 20 days (4:1 risk reward)

Icequebe · June 19, 2014, 3:02am

How true is this

PipsAndFlows · July 20, 2014, 3:14pm

I’m doing a backtest of this strategy with an adjustment to the RR ratio. It seems to me that 1:4 is a little lofty and will lead to too many losing trades when price fails to reach 40/70 pips. I’m adjusting to TP levels of 10 for the first trade and 20 for the second. This creates a 1:1 RR, which may not be ideal for some traders, but will obviously return a much higher win % and will be consistently profitable if win rate is >50% which looks like it should be.

At any rate, I think this is a good, simple approach – provided you don’t run into too many false breakouts.

philstodd · February 21, 2015, 6:58pm

I click the link and it forwards me to 741.com. I think this was changed to a scam link. Anyone else have this happen to them? It’s on page one.

Slumdog · April 17, 2015, 1:21am

The theory behind this strategy is solid, I trade a similar strategy very profitably for the last 5 years based on different times of the market and different tp/sl strategy.

Whilst a cant really share the strtegy as its partly based on rules and partly based on experience of reading the market and price action, I will offer to advice points to developing a startegy like this of your own.

There is a reason why strategy’s like this will blow up over time, and its because people assume a fixed value tp/sl in pips for every trade will work, but the market volatility, liquidity, and value is constantly changing, so we have to figure out a way to try and be consistent with the market and adapt, and to consistently make profits. for this startegy we dont need the market to move by X amoutn of pips… we just need it to move in its intended direction.

base your tp/sl levels on a a ratio to the range value betweent he high and low of the session your are trading. so for eg, if the range your trading is 20 pips, i might want use a 1:0.5 ratio, so 20pip tp and 10 pip sl.
the problem with using range and measured moves is that sometimes for months the market might only be moving a small amount of pips on your only trading fixed lots of 0.1, your going to be making less profits. get your head out of considering how far the market moved in pips… the only thing you should be concerned about is the market moving in the direction you want it to.

so to this end we look at our lot value and risk. I calculate my risk based on sl level. so assuming balance 10,000 and 2% risk, if my SL is at 20 pips i will trade whatever lot value that means if my SL is hit i will only lose 2%/$200

play around with he time to trade. we most often see the greatest volatility in the open of London session, so you might want to consider this.
consider using trend filter for deciding which trades to take and not to take
let the market move and trail your stops by recent swing lows. (not to tightly) (but never extend you SL)

that’s all, and hope these tips help if forming a strategy like this of your own.

Sorry for the messy spelling and grammar

harryos · September 29, 2016, 12:10am

[Hi I see it has been six years ,but would Marvindoriat still be about???

lexys · September 29, 2016, 7:10pm

He last logged in over 5 years ago, according to his profile.

pietrof · February 5, 2017, 12:56am

I am backtesting this strategy and it does not work on USDJPY.

reteid2222 · February 5, 2017, 4:32am

Slumdog:

The theory behind this strategy is solid, I trade a similar strategy very profitably for the last 5 years based on different times of the market and different tp/sl strategy.

Whilst a cant really share the strtegy as its partly based on rules and partly based on experience of reading the market and price action, I will offer to advice points to developing a startegy like this of your own.

There is a reason why strategy’s like this will blow up over time, and its because people assume a fixed value tp/sl in pips for every trade will work, but the market volatility, liquidity, and value is constantly changing, so we have to figure out a way to try and be consistent with the market and adapt, and to consistently make profits. for this startegy we dont need the market to move by X amoutn of pips… we just need it to move in its intended direction.

base your tp/sl levels on a a ratio to the range value betweent he high and low of the session your are trading. so for eg, if the range your trading is 20 pips, i might want use a 1:0.5 ratio, so 20pip tp and 10 pip sl.

the problem with using range and measured moves is that sometimes for months the market might only be moving a small amount of pips on your only trading fixed lots of 0.1, your going to be making less profits. get your head out of considering how far the market moved in pips… the only thing you should be concerned about is the market moving in the direction you want it to.

so to this end we look at our lot value and risk. I calculate my risk based on sl level. so assuming balance 10,000 and 2% risk, if my SL is at 20 pips i will trade whatever lot value that means if my SL is hit i will only lose 2%/$200

play around with he time to trade. we most often see the greatest volatility in the open of London session, so you might want to consider this.

consider using trend filter for deciding which trades to take and not to take

let the market move and trail your stops by recent swing lows. (not to tightly) (but never extend you SL)

that’s all, and hope these tips help if forming a strategy like this of your own.

Sorry for the messy spelling and grammar

Great job…if you have a good breakout…I ll be in and code it!

jamesmac112 · April 15, 2020, 9:37pm

What would be the best chart time to use for this strategy, I currently use a session breakout strategy but I use 15mins for my entry and do from top to bottom to see the trend