Hey everyone. Hello from Europe. OK, I’m watching this for the past two days as well as last Friday. Friday looked good (I didn’t trade but was only watching). Am I looking at the wrong candle sets?..because if not, both Monday and Tuesday looked pretty ugly. I’m showing a break out to the south today for about 30 pips, only for it to reverse after 3 hours. Yesterday, Monday, I see a break out of about 35 pips…but nothing more than that after.
Just making sure I am looking at the right candles 
Hi nutrader, I am not sure I understand all of this. I am a new trader and some of the language or lingo is unfamiliar to me. I am very interested in trying this strategy. Could you explain in more simple language so a newbie like me can fully understand. I would be grateful. Thanks in advance, Hiccup
P.S. are you still using this method and is it still performing or producing good results?
I’m new to this as well but have tested the strategy a couple of days on the live account. The last three days were bad indeed I agree with knotthead. The reason being the ongoing insecurity about the vote in Greece. Nothing to do with the strategy which I think is great. Just goes to show that fundamentals matter too. Unless the situation which is so major like in Greece is settled things will not get back to normal. Unfortunately I traded the last 3 days with losses. Today I waited which was good.
Well I know nutrader designed this as a set and forget trade but fortunately I’m able to manage the trade until about 11:00 GMT and it makes a big difference to profitablity, Sorry not much help to you full time workers. Maybe some clever bod could code an EA for it.
Basically I’m closing half the position when I make 1% (so locking in 0.5%) and stoploss to BE. Other than that on long candle days I’m not using the full length of the candle for my initial stop loss, more like 75% of it, still risking 1% per trade increases my pip value so I can take profits earlier when price moves in my favour.
Personally I’m still using this trade on GBP news days but only setting up imediately prior to the news if price is still within the 8 am candle range. I don’t want the trade to open in one direction then a coin toss news event to wipe me out.
Plenty of tweeking to do but this is currently my most profitable set up.
Back to positive pips!
Got in this morning and set my TP at 62 pips. It took a while but it finally hit. Hang in there RK1m. If you stick to this strategy you’ll bag more winners than losers. I’m averaging about 70 pips per day thus far and that is including a couple of newbie decisions and hefty losses.
I’m “on vacation” now but still watching this and pulling the trigger if the candles tell me to. Make sure you use SLs and TPs…I learned that the hard way.
More in-depth entries and exits when I return home. Good luck!
Jaroon.
The take profit strategy is another great point that can be applicable to this system. I just read about that a few days ago in Kathy Lien’s book about setting a target 1 and target 2 for TPs. If you lock in at 1/2 of your full target with the sale of half your position then you “lock” in to profit and let the other half of your initial position run with a trailing stop. I also like your idea of changing up your SL on long 8AM candle lengths. I’ve been doing that on my SLs as well as my TPs (usually 1.5x the candle length for TP).
Nice points/tweaks to add!
Hello, back to profits today, thanks knotthead
I’ve also been experimenting with the system and am still green behind my ears so forgive me for possible silly questions:
In order to execute the initial strategy I set two stops on the high and low of the right candle. The breakout triggers the correct stop and I’m in either a long or short position depending on which stop was triggered. At the same time I’m protected because the stop that is not triggered on the other side of the candle acts as a stop loss for my open position.
This is how I first went about trading this. I scaled the position size depending on the size of the candle so I wouldn’t risk more than 1% of my baby-account.
Now I’m experimenting with different settings: as soon as the trade is triggered I delete the other stop and set a new trailing stop to give me a 25 pip maximum loss and set the tradesize to 1% of my account to begin with but on the basis of the 25pip loss (hence the tradesize gets bigger). I then let the trade run with a trailing stop of 25 pips.
Regarding TP I go for a one times the candle size of the breakout, maybe more.
The disadvantage is that I’m paying fees for 4 orders?! The advantage is that I still play with 1% of my account but my possible gains are maximised. Is there anything that I’m missing or should do better? Thank you.
Hey RK good to see someone else testing this method.
You’re not managing the trade as suggested and, as you say, will be paying excessive spread for all these positions. I think the recommendation, and what I do, is set your one buy stop at the 8 am (BST) candle high and one sell stop at the low. Set your stop loss and take profit on each induvidual pending order and once an order is triggered you need to delete the other order. I’m not sure how you’ll do this if you’re away from the screens, I think you can get alerts sent to your smart phone if you use Mt4 then close on your phone? Also if you leave both pending orders active one of those big doji candles you sometimes get with news will trigger both orders within seconds so you’ll at best lose 2 spreads and maybe more.
Missed todays down move as I wait till just before news on a red news day (forex calender) and I think news was out a couple of minutes early (UK PMI), well the down move started at 9.28. Still nothing lost.
Bonjour from Paris
This week I’ve had my pals EA working on GU, GJ, EJ & EU, with a 30TP & 20SL. I’ve had some probs with the EA & also French BB missing some good moves, but despite this I’m showing over +100 pips…looking good so far,
A Bientot
Hey everyone,
i am still following and doing a bit of tweaking. but making pips!
I am based in U.k. so can keep an eye on the movement, and so not confident on letting the trades run too long! But enjoying the feedback from you all.
happy trading all!
dave
Oh yes I do test this. Today was quite good, made 51 pips on GBPUSD. The orders cost 2$ each so 8$ all in all, I think that’s still ok. I’m trying to use the signal, but limiting the risk and maximizing the position size. Maybe that way I get stopped out earlier but if it goes in the right direction, I’m there making pips with a bigger position while still risking 1% of my account. I will test this some more and appreciate the feedback. I think the best thing about the strategy is the signal that you get after that one candle. SL and TP seems like everybody is doing his/her own thing, isn’t it?
Hi everybody,I am from london, new to forex world, please can you explain what type of strategy is this.thank you in advance.
happy and profitable trading all…
Well what is it that you don’t understand? The setup is described by the person who started the post. Anything specific?
Has anyone kept up to date with this system and how is it going? is there any reason this is the special market or would this work on any market?
Hi, I’m Not a pro but I make some pips with it, Today again 31. There isn’t a great Trend in the GBP so it changes often. This is tricky. Also I tweaked it As described above and manage the trades, this has saved me a few times. But the Signals I find very good. As far As I understand it Works on currencies that are very liquid and break out during the morning London session, so USDeur and GBP USD are good. Just my 2 cents…
Dobre Dzien from Poland.
I was out and about for the last few days so I haven’t been able to actively watch and play with this system, but I am back in today. I must say watching and playing this system from Europe is a lot easier than from the East Coast of the US
Back in today on the immediate break out of the 9AM candle. I’m in long at 1.6008 with SL set at 1.5942 and TP is at 1.6083. That is just below the low of the 8AM candle for my SL and 1x the 8AM candle length for the TP. I may play with what we were discussing before about setting two TPs, selling half of the position at the TP1 mark and then letting the other half run with a trailing stop. After the initial break out to the north, the candle immediately went south so I am down and thought about the idea of waiting until the 9AM candle closed above/below…but I will let this run and hope my TP(s) are hit.
Also, I have been toying with a very simple double bollinger band system that I stumbled upon and am using with very good results on daily candles for the EUR/USD. So far in two weeks I have bagged 450+ pips using it. If interested let me know and I’ll explain or start a new thread on that one.
Good luck! More later on (hopefully positive) London Breakout results Happy to be back in the saddle…
Hi Knotthead - yes I would love to hear the system. On here or evan via private message if you want.
Have you backtested the bollinger band one?
Cheers
J
email sent Jay D.
Cable just doesn’t want to cooperate today. Still holding, though my SL was almost hit.
Just trying this out for the first time live, very small amounts.
50 pip win. Tested it back over two months demo, looks very good.
Not a lot of people on this thread?? does this system have legs??
Hi knotthead, -I am very interested in the double bollinger band system you talked about. can you delineate further on the thread or if not might you email it to me? Thanks, Hiccup