TOBY'S 600 SECONDS BREAKOUT SYSTEM ( Ratio 1:2)

Trading Systems Free Forex Trading Systems
1

System Rules:

NO Negative comments only Positive

Share Your Trading Journal Here

[B]Share some profit to me[/B] (If You Want )

Pairs Stop TP
EURUSD 50 100
USDCHF 50 100
NZDUSD 50 100
AUDUSD 50 100
GBPUSD 60 120
USDJPY 50 100
USDCAD 60 120
EURJPY 90 180
GBPJPY 100 200

Timeframe: Daily

[B]BUY SIGNAL[/B]

• Only use a daily chart and check for signals at the close of each daily bar
on the evenings.

• 21 SMA must be trending up and not flat.

• An inside bar must form.

• Place a buy order 5 pips + spread above the top of the inside bar.

• Place the required stop depending on the currency pair (see stop values)

• Place a take profit of twice the amount of the stop.

• Do not remove trade until either the entry is triggered or the 21 SMA
changes to a down direction

[B]SELL SIGNAL[/B]

• Only use a daily chart and check for signals at the close of each daily bar
on the evenings.

• 21 SMA must be trending down and not flat.

• An inside bar must form.

• Place a sell order 5 pips + spread below the bottom of the inside bar.

• Place the required stop depending on the currency pair (see stop values)

• Place a take profit of twice the amount of the stop.

• Do not remove trade until either the entry is triggered or the 21 SMA
changes to an up direction.

2

do you have some screenshot to explain well your system?

3

i highly suggest you to provide a pic that is able to explain or indicate your trading system…cheers my friend

4

check the top post, hope you enjoy it!

5

Will you move your stop loss to BE after a certain amount of pips?
Cheers

6

no, cause this strategy is require only 10 minutes to check your account daily.

7

i dont really understand how you define a bar as an inside bar…

8

me too. i don’t understand inside bar

9

the inside bar = bar that did not exceed the higher price and lower price of previous bar,

10

with this system you can’t trade every day. i checked some charts on D1 but inside bar doesn’t appear every day at end of evening.

11

i found there are not only 2 inside bars in your graph…am i right ?

12

you’re right you can’t trade everyday but remember you have 8 pairs to trade, but once you meet the proper setting your chance of winning is about 65-80% and remember the ratio 1:2 all you need is 32% winning strike to be breakeven more than that is profit for you, enjoy

13

you’re right, there is small inside bar, thats actually sunday bar!

14

I’ve been researching inside bars independently and support the OP’s strategy. There’s a few variances that I use with my own strategy. I use a 14 SMA and set my SL and TP as a function of the inside bar’s size. The biggest factor that’ll stack probability in your favour is trading in the direction of the trend only. You have my support toby. I look forward to any results you or anyone else post. :slight_smile:

15

thanks kingkaivar!!

16

Thanks for your reply.
But what if you enter a trade on day one, then you check on day two and it has moved 60 pips in your favour but your target is 100 pips? Will you move your stop loss?
Cheers

17

well, its up to you if you wanna move your stoploss to breakeven+spread, for me once the order been filled i let the system do the job! this system is averaging between 65-80% all you need is 33+% for break even more than that is profit we’re talking about 1:2 ratio here, enjoy!

18

this system really suitable to people that have no time to monitor the trade! just only check 600 seconds a day :stuck_out_tongue:

19

Hi toby. When you say 65-80%, is that the win rate for a 1:2 risk:reward ratio? Or is 65-80% the return you’d expect from each trade?

I also did daily chart backtests for 2010, 2011 and early 2012. My methodology is a little different. Like you I trade in the direction of the trend. Lets say the trend is bullish. I set a pending long at the top of the inside bar, with my SL at the bottom of the bar. I then analysed different risk:reward ratios to see which one gave the best results. 73 inside bars were traded during that time, both with and against the trend.

TRADE WITH TREND
1:1 risk:reward
Win% = 0.63
Lose% = 0.38
Expected return per trade% = 25%

1:2 risk:reward
Win% = 0.5
Lose% = 0.5
Expected return per trade% = 50%

1:3 risk:reward
Win% = 0.43
Lose% = 0.58
Expected return per trade% = 70%

1:4 risk:reward
Win% = 0.38
Lose% = 0.63
Expected return per trade% = 87.5%

1:5 risk:reward
Win% = 0.25
Lose% = 0.75
Expected return per trade% = 50%

1:6 risk:reward
Win% = 0.2
Lose% = 0.8
Expected return per trade% = 40%

1:7 risk:reward
Win% = 0.18
Lose% = 0.83
Expected return per trade% = 40%

Very impressive returns. I also checked the correlation between SL size and risk:reward to see if the size of the inside bar influenced the win rate. Correlation was -0.17, which is weak. I suppose the main issue is sample size, which is only 73. But it spans over the last 2 years.

Trading against the trend yielded negative returns.

20

hey kingkaivar im talking about an average of 65-80% win rates for all the pairs, so if my risk reward 1:2 (ratio) all i need is 35+% win rate to be breakeven, more than 35% win rate = profit, your strategy is brilliant and im sure very profitable too, but for me i like to know how much profit or loss at the end of the trade so i can adjust my money managament base on my account, anyway thanks for the post above (great help for people trying to understand the system) and im sure youre going to help me here explaining to people about the this very “PROFITABLE, LESS STRESS, KEEP YOUR 9-5 JOB, SYSTEM”, can i count on you?