Advanced system #4 (Early bird Breakout System)

Thank you, Kav!

Hi Edward & fellows,

First of all, I would like to say Thank You for such a good strategy.

I am new to FOREX and I find this strategy profitable. I have a question though: If I have successfully reached the Sell Order and gain profit, should I continue to set the entry order for the next hours of the day? Or I should have made several trade entry at the same time but with different Sell order?

Hope you can clear my doubt. Thank you

This strategy is good for one time breakout entry only.
Entering with more than one order is possible, but you have to calculate your risk/reward scheme properly.
Afterward you should be looking for other trading intraday systems.

Best regards,
Edward

Market designed based on two human emotion as you may know, FEAR & GREED, market fluctuate by these two.

One is defensive (Fear), one is offensive (Greed). You better have a balance respecting to your norms, values, goals, risk tolerance, capital and ...

As Edward said, this strategy is a One-Time-BreakOut-Entry , The beauty of this strategy is that It balances your Greed & Fear and It forces you to trade one time, and a good one, it shows you that you do not need to trade every day and every time, it shows you too keep your risk low by analysing both technical and fundamental daily signals.

I hope it helps little bit :)
Good Luck
Kav

hello

took some time and tested this system on GBPJPY for the last 6 months data, manually.
My conclusion is that that though it ended the period profitable, the profit factor as rather low after all trade results are properly adjusted with spreads.
also, losing trades outnumber winners, and drawdowns are guge to withstand time to time. start at a wrong time, and never survive to see the profit...

to trade this system on GBPJPY i only suggest to those who has big enough account size and steel nerves to withstand the huge drowdowns without altering the system out of emotions.
my test included a total of 115 trades in 6 month period, and the total result came around +840pips....worst 3 day losing period resulted 700 pips drowdown, best month's profit was 816 pips, worst month's loss -568 pips.

hope this test will help a few.
regards

I agree with the previous comment.
I created an EA for this system, and tested it on different long term periods.
There are some periods extremely profitable, which tripled your account in 4 months. But there were some when your account lost a half of it in 2 months...
Percentage of winning/losing trades is about 50/50, and only a TP > SL and a right money management saves you from a ruin...
Also, I discovered an interesting thing: if you DO NOT trade after your first trade of the day ends in SL, then your long-term results are better!

Dear Edward, I am new to Forex and was amased by this simple strategy. but let me ask you, does it really apply blindly, without any affecting factors? I mean it is all time-based strategy, without any market analysis, news, etc..

Thanks for your great help. I am looking forward to applying it

It is indeed just a time-based breakout strategy. There are plenty of those available, but they have the same idea in common: the setup tries to catch the hours of a less active trading session and, as the market decides on major direction for the day, traders join in on a break out of a price range.

News announcements only spice up the breakouts, however, one should remember that in order to keep profits during news breaks, a profit goal should be set in advance as a pending order, otherwise an attempt to exit with a market order will have very slim chances for success.

Other than that the breakout method is a set-and-forget type of trading, which needs no additional technical or fundamental research.

Regards,
Edward