Thank you, sir, for pointing this out. I will study it.
I’ve been meaning to ask you, is there a short version of your name, or a first name, or nickname, by which we can address you?
3 digits- (262) out (278) plus 16 pips.The bollinger hourly again was hit early and often during the opening of these markets.The last couple days were easy with the path of least resistence so close.
Everybody have a great morning!
I’ve seen that London sunrise mentioned in another thread here on the forum. From that description it sounds like it includes a martingale system.
A short version indeed - I signed posts with J in another thread earlier. I apologise for staying this much anonymous! (That kaalilaatikko is just a Finnish word that rolls nicely on your tongue, not a name, if you have wondered that.)
Good morning, guys
Are you still trading the London Breakout Strategy?
I am. I’ve been using LBS/B/1 since the beginning of the month. This week it has worked very nicely. Two great breakouts and TP hit in the first mini-trend - after which the price has started ranging pretty soon. +120 pips so far for this week, and on profit for the month after two lousy weeks. I believe that patience will pay itself with this system, and therefore I’m not having weeks off.
J
??? 
See post 1307 and a couple of posts before it. It’s easier to speak about things when they have a name (albeit admittedly this one is maybe not yet accepted in general trading jargon).
Yeah, I read that post but don’t see the explanation for that term LBS/B/1.
me too, lbs= london breakout system? whats the b/1 ?
Me as quoted in SanMiquel’s post 1306:
Originally Posted by [B]kaalilaatikko[/B]
[I]So this would be then the London Breakout System, or more conveniently LBS. Now there are a number of variations out there, mainly around the placement of SLs and TPs. They could be appended to the end like LBS/10-50, the stop being mentioned first. Now I’m basing my trades on the overnight box range, so let that be then LBS/B.[/I]
SanMiguel in post 1306:
[I]
[I]LBS/20-50/1 for me (1 trade per day only)[/I]
[/I]
So LBS = London Breakout System (or Strategy)
B = box-range-based trades
1 = 1 trade per day only
Sorry for any confusion!
As in LBS/20-50/1
Maybe I could add onto the end of mine, suspended for a for a few more days…
OK, now that we understand what J means, can you share what parameters you are in fact using for the LBS/B/1 to get your +120?
Here’s a copy about what I wrote earlier (post 1227) (rule numbering added):
I’m starting to test the strategy that adjusts the stops and TPs according to the overnight range. The rules are the following:
(1) - Entries in the standard manner. A significant support or resistance (typically a century or half-century mark) may make me push these a bit further apart.
(2) - Stops are set according to the opposite entry signal minus 2 pips. This is just to prevent overlapping orders just in case if I am prevented from cancelling the second trade in time.
(3) - If I can, I’ll adjust the SL to BE when the trade is at about 20 pips on profit. If I cannot, the trade can run with the initial limits.
(4) - TP is by default at the same distance as the stop. Again, I may bargain a few of pips if it is near a significant level.
(5) - The position size is scaled according to the range.
(6) - I may not trade if the setup looks bad (like yesterday), or I’m otherwise prevented from trading.
Comments:
(1): I’ve also tried to select the highs and lows a bit more cleverly. Looking outside the overnight period may not be a good idea. If the price is trending overnight and there is a strong move, I may consider using a shorter period as a a reference.
(2): Still ok. That overlapping is not necessarily a problem.
(3): Better not to adjust the SL, at least not this close. Well, yesterday I adjusted it when 30 pips on profit, but TP was hit anyway.
(4): I’m now aiming at placing TP at the same distance from the entry as SL. That has impact on the result especially if the range is pretty tight, say 40 pips. But I can still bargain some.
(5): Very essential. If I say having gained 120 pips this week, you might have gained the same profit with a 20-pip target, for example.
(6): Add major news to this. I think that consistence is a major key here.
Example for today:
range high = 1.6406 and low = 1.6340. Long entry = 1.6416 (4-pip spread), SL = 1.6336. Target thence = 80 pips and TP = 1.6496. I’m already in, as the entry price was minimally touched. The price has not yet started going into the desired direction, but patience is a virtue.
Any potential breakout this morning may be impeded (or completely aborted) by the interest rate news coming out of Britain and the U.S. later in the day:
[B]08:30 GMT — Bank of England Monetary Policy Committee meeting minutes[/B] (not an interest rate decision, but an indication of the future direction of interest rates)
[B]18:15 GMT — U.S. Federal Reserve Board Open Market Committee (FOMC) meeting minutes [/B](similar in impact to the BoE MPC meeting minutes)
[B]18:15 GMT — U.S. Fed Funds Rate Decision[/B] (has the potential to roil the market — probably won’t, but the potential is there)
If there is no breakout by 06:30 GMT, I will cancel my pending orders (before London opens). My reasoning is this: if Europe is on hold, waiting to get the interest rate news behind them, then London will probably be on hold, as well. While they’re all sitting around, waiting, they’re likely to do some stop-hunting outside the “box”. We got a hint of that already, at 04:55 GMT, when price probed the 1.6408/14 area. I don’t want my pending order sitting out there, like a little target, when the stop-hunting starts.
Clint
Just missed my long order, im letting my orders ride, although the smart thing would be to cancel like Clint said.
for my overnight range I used just the last few bars (hilited circle) as it consolodated at a pivot point / resistance area. orange lines are my high low. Nice break down from there.
Today’s trade was then a perfect flop for me. My SL would have needed only 9 pips more to keep the trade alive. Anyway, a good example why the 2nd trade should not be taken.
Does anybody know about any good calendars about past news days, so that it would be easier to compare the news and the charts? So far I’ve been thinking that NFP is the main red news that is best to avoid, but you might profitably survive many of the others if the stop is far enough. But I may need to change this thinking and at least make a list of those pieces of news that I should always avoid. Any suggestions for the top-5 or top-10 list? But there might be no sense in including too many of them on such a list - the trading days could become quite rare.
Somehow this news-based price action is sometimes crazy. Like today’s MPC meeting minutes: the score has been the same and forecasted for months now, and still the reaction is that strong.
J,
If you are asking about calendars from previous weeks, months and years, they are easy to get. Go to Forex Factory Calendar: Forex Calendar @ Forex Factory and select the year, month or week that you want to review. You can even select a single day. Filter out the pairs you don’t want, to get rid of the clutter. You can also filter out the low-impact news, if you want to.
Here are a couple of screen shots to illustrate the process.
This is the current week, with the filter set for GBP high-impact and medium-impact news events:
This is one year ago, with the same filter settings, showing the drop-down filter menu.
I hope that helps.
Clint
Volumes have picked up a lot since those doldrum days of end August.
This is the last 2 weeks on LBS/20-50/1.
I’m sure the other methods have similar win ratios.
Clint, thanks! (Now when you showed that, I should have been able to find that by myself… Maybe I was feeling a bit frustrated and posted the question in a bit hastily.)
Not for my version… today’s long trade was another flop in a row, taking this week to 0, and as the last week was a losing one, I cannot be too happy.
14.9. short trade profit, I didn’t trade
15.9. long trade loss
16.9. short trade loss
17.9. long trade profit, placed entry wrong and landed in BE
18.9. short trade profit
21.9. short trade profit
22.9. long trade profit
23.9. long trade loss
24.9. long trade loss
Your chart shows 5 profiting trades and 4 losing ones.
My system shows these excatly the same way. But I am pedalling without moving anywhere, while your chart is pointing nicely upwards, the only difference being the R:R. Hmmm… am I banging my head against a wall or should I join another club of winners?? I would be a winner here with 20-50 even with those two mistakes. Food for thought now.
I can’t really re-run any tests until the month is over mainly because of the lower volumes at end August/beginning Sept but I will do at the end of the month. The stats will only be 20 trades or so…hardly conclusive.
The only thing I really consider crucial is that if a win ratio is near or abouts 50:50, then I’m never going in with less than 2:1 - this is just my personal preference. Whether 50 pips is too big is a consideration because that’s around 30% of the ADR of cable but I don’t think I would want to run this with a stop of less than 20 that’s for sure. I did run with 24/48 (25-50 close enough) for a while.
If cable breaks this support area and goes below 1.6 / 1.59 it may trend down for a few months, who knows…