I closed +20 just after it shot up
My choices were to take a 19 pip loss or hold on and hope that the overnight and early morning worked in my favor (and put in a stop loss if it didnāt). I elected to take my hit and start fresh today. I got in this morning (short) at 1.6367 and Iām up 10 pips thus far. I was skeptical of the trade this morning as the 8AM candle was really long today and the breakout candle was quite small. It retraced a bit after the 9AM breakout candle and then when the 10:00 reversed to go with the guidelines I jumped in. fingers crossed, but like you Touchstone, I may cash out after I hit a 25-30 pip gain.
Happy pip hunting!
I took the day off today, Iām up +162 this week between this system & another Iām working, so keeping powder dry will try again tomorrow
Nice! With my 19 pip loss yesterday, I am at +126 for 5 days of trading. Itās been swinging both ways a bit and I think that by implementing my stop loss and not holding on I can sway the number better in my favor. Like the School of Pipology says, you have to have your system rules and you have to follow them no matter what and take fear/emotion/excitement out of the equation. Thus far I have only been following this system loosely and it seems to be paying off thus far, but now I really want to implement all of the rules, SL, TP and all and compare. Again, this is just a test account. If, after a month or so, I am consistently getting positive pips Iāll throw real money at it.
Touchstone, what other system are you toying with? I am also doing long-term (daily chart) technical analysis on EUR/USD.
Hi Knothead I tried to email you with my other trade info but donāt qualify yet, can you mail me ?
Closed +20 GU +20 GJ
Total for week +118 on this system, I close too soon every time but Iām happy
I got in this morning before the 9AM candle was finished. It had broken to the north during the hour and so I figured that was the breakout signal. I went long since it was headed north and set my SL and TPs. The 9AM candle closed and it never broke the 8AM candle. Then of course the 10AM candle broke to the south and my SL was met. So I lost today. Iām still up for the week but I need to refine this. From my experiences the following hold true:
- The initial break out is where you make the most pips
- There is usually a reversal in the 3rd hour and then the trend continues
- You must wait until the breakout candle is finished breaking out
- Must use SL
Yesterday my SL nor my TP was met, so I let it run into this morning. I could have closed last night with a small pip loss but held on to see what the opening brought. SL met again. Ugh!
Working out the fine detailsā¦but so far I am still up.
Hi Guys
I,m glad to see somebody is trying out this system. I did trade it live last year for several months with real money & then had to stop as my own business / work needs got in the way forcing me to miss trades. As soon as you start to miss winning days the numbers can easily work against you so i figured if i couldnt enter every day it would be best to stop.
Overall i ended up in profit but one thing i noticed when trading live is that the smaller the 8am candle the more the significant the spread becomes on the trade meaning a winning trade will be less than 2% gain ratio & a loss will be more than 1%
Of course this can be overcome by factoring the spread when setting SL & PT but the backtesting did not take this into consideration.
Since i stopped trading this system last year, when time allowed i was always intending to trawl back through all the backtesting with the spread factored into the system to see if the results differed by much. Now that i see some guys on here trying the system it has made me more determined to do so & to confirm how much impact the spread will have on the overall results.
That said, i am confident that this system can be successful in the long run & although rules are rules i definitely believe it can also be fine tuned to perform better by bending the rules & or managing trades. As i mentioned in the first posts there are many days when a lot of pips are left on the table by following the rules.
I will let you know how the back testing goes but it could take some weeks as it all has to be done manually.
Anyway today was a win for anyone who took it & yesterday was a no trade as there was no break during the 1st 3 candles.
Good luck
Nutrader.
First of all, thanks for posting up this system. After backtesting a few months, I was very intrigued and anxious to start trying this. When I said I still need to refine this, I didnāt mean to refine your system but rather my entry points. I still havenāt nailed down whether or not the system uses the 9AM āfinishedā candle in order to judge the breakout, whether that means using the low and high body of the candle, or if we should be using the stems in either side to a) determine the breakout and b) figuring out the SLs and TPs (i.e. using the body of the candle or the full range).
My issue is really the entry as I donāt mind leaving pips on the table as long as I am gaining pips and not losing them. Should I/we wait for the close of the following hour candle to determine if it is a breakout or not? Of course the breakout is usually the main move but hey, Iāll take the remaining positive moves over chancing a reversal.
I simply use the BO of the closed 08:00, that is candle opens at 08:00 BST & Closes at 09:00 BST. Iām now going to use EJ along with GU & GJ
Knotthead
After the 8am candle has closed use the full price action including the wicks of that candle to determine your entry points
Entries should be in real time as price breaks the high or low by 1 pip at any time from 9am - 12 noon ( at least that was how the backtesting was done)
Currently London is on GMT + 1 so this time frame should be used
It is important to change your time as London does from GMT to BST so you can trade off the London market opening price action
I have a lot of catching up to do as i have no idea how this has been performing this year but a quick glance at the charts tells me that this week will be profitable regardless of what happens tomorrow as below
Monday +2%
Tuesday -1%
Wednsday No Trade
Thursday + 2%
So even if tomorrow is a loss this week will still gain
Plenty of pips were left on the table on Monday so would of been a good day to manage your trade as it broke through the PT
Tuesday was a bit unlucky as it finally hit SL during the next days 8am candle after being in profit for most of the day
Wednsday there was no break by midday so no trade
Today we hit TP but only just by about 6 pips so it will be a close call if we factor in the spreads to keep the 2% ratio but still plenty of time for price to show a more convincing win
Touchstone, good luck it will be interesting to see how the other pairs perform but i wouldnt trade with real money until they have been backtested through several years.
Thanks Touchstone and Nutrader. Iām going to get up at 4AM EST (9AM BST) to see where the 8AM candle closes. Hopefully Iāll catch it early enough but not too late for the run (if it happens) tomorrow. So, Iāll use the full candle this time and not the candle body as I was using previously. Hopefully better luck tomorrow.
I didnāt run any data scans or anything on my backtesting, but looking at the charts for the last 4 months and it all looks very good. Iām very interested in your backtesting numerical figures Nutrader.
GLTA!
Iām in on this today, though I just couldnāt get out of bed at 4:00AM to place my trade early. Iām short at 1.6281 with a SL of 1.6346 and a TP at 1.6225. Weāll see how it goes.
TP was hit at 1.6225 for a gain of 56 pips. Of course just after it hit my TP, it started to head back in the other direction. Very happy! Not a bad way to end the week! So I am up (+126, -2 yesterday, and plus 56 today) 180 pips for the week, plus I have a long term trade with EUR/USD that I am up 96 pips as of a few minutes ago that I will hold for a few more days and see where it runs. Trailing stop in place on that one.
Touchstone, Nutrader, everyoneā¦have a great weekend!
had a go for the first time today, almost but not quite ! went in short at 1.6276 with a TP at 1.6168. got within a cats whisker then went off like a rocket in the other direction until it went past the stop.
knotthead, did you aim to go slightly less than twice the 8.00 spread, I did so presumed everyone else had lost as well, so congratulations.
fortunately, as a newbie Iām only trading a demo, but I still feel annoyed at the loss though!
ah well next week eh?
blue tony
Hey Blue Tony!
Yeah I was watching like a hawk when the price got close to my TP. Luckily it hit. Unlike Nutraderās system, I only set my TP at 1X the breakout candle. Do I leave pips on the table? For sure. But, for the reason you just stated, Iād rather take a medium gain over the potential reversal. Still, you can probably make more in the long-term by doing the set up that Nutrader came up with. In fact, Iāll probably do that next week and compare the two.
I too am demo trading this. I will continue to do so for the remainder of June, keeping track of every trade and the results of those trades in my trading journal. Then at the end of June, if I feel comfortable with this system Iāll toss some real money at it. My goal is to average roughly 50 pips per day. Itās not winning the lottery, but if done consistently, then I can grow my Forex account and bring in more $ per pip down the road. Baby (pip) steps 
My long-term EUR/USD is helping too. If I cash it right now that will be another 120 pips. That one was meant to be a buy it and put it away until a few weeks. I was down 130 pips at one point but then a complete reversal and Iām now way in the positives. I may take profit and start a new on Monday.
Have a great weekend everyone!
On top of the 180 pips this week on the London Breakout System, I am up 152 pips on my long-term EUR/USD trade. I doubled my position about an hour ago and have hit another 46 pips on top of that. Think Iāll close and be done for the week at 180 + 152 + 46 = 378 pips for the week. Too bad itās only demo money!
Happy Monday London Breakout players!
Got up early this morning just after the 8AM candle closed. Put my buy order in (lot of 5000 at 50-1 leverage = $0.50 per pip) just above the 8AM candle top and went back to bed. Woke up this morning and my buy order was triggered. Iām in long today at 1.6287 with SL at 1.6230 and TP at 1.6344. As of now I am up 31 pips and headed straight for the TP. Fingers crossed.
I know $.50 per pip isnāt that much and I shouldnāt buy my private island in Fiji yet, but I figured Iād start my practice account with roughly the same amount I would initially begin with in my real money account. If, like last week, I can grab 250+ pips a week then Iāll be a very happy camper.
Touchstone, Nutrader, Blue Tony, and luck this morning?