Trading News Breakouts?

Hi folks,

Over the past few weeks, I’ve been trading three break-out systems, one for US open, another for UK open and yet another for weekly breakouts.

The problem is that, except for weekly breakouts, US and UK trades can only be taken once a day - in the local morning and usually in anticipation of major news (major enough, at any rate, to cause substantial price action).

When that happens, I usually identify the base box and then simply set short and long limit orders below and above it, so that whichever way the market reacts to a news release, I’m in for a 20+ pip ride.

Now, what I’ve been wondering is whether this technique can be applied to any currency about to experience significant news events. Until now, I’ve been sticking to the majors proper (USD, GBP, JPY, EUR) - but now I cannot help wondering wondering whether the same strategy can be used for any currency?

Additionally, in your experience, do NZD, AUD and JPY see the most action after the Asian open? The break-out system I’ve been using relies on trading USD pairs on US open and GBP on UK open (well, two hours after the open, to allow for the box to form) - so I’m wondering if the same reasoning can be applied to NZD, AUD and JPY for Asian markets as well.

To clarify: obviously this system isn’t 100% successful. There always are losing trades, but that’s just part of the business - so long as I’m able to keep the risk:reward ration around 1:2 or above (which seems pretty easy with breakouts), I can afford to take bad trades, since the law of probabilities will kick in at one point! (Obviously, proper MM is just as relevant as ever).