Advanced system #4 (Early bird Breakout System)

Hello Edward,

Edward, thank you for your contribution. It is very valuable really.
My question is. If we put the buy and sell order at the same time for the same pair of currency, what we gain on sell we loose it on buy. Then the difference is almost zero, how do you get then profit?

Thank you again for your contribution

Felician

Hello Felician,

as soon as the first order is triggered (either Buy or Sell), the other one should be is canceled. This way we don't have two opposite positions running.

If you trade on a platform that allows placing OCO orders (One Cancels Other), which MT4 doesn't support, then it's done automatically.

Best regards,
Edward

This strategy is useless and even very dangerous. I don't know how well it worked back in 2007, but to use this strategy on market today seems a suicide, especially on GBP/USD pair. This only could be useful, if price generally moves in one direction - i.e. is in very strong trend state (which happens seldom and could not be predicted). Instead, in 8 hours (from 5:00 AM to 13:00 PM) price may reach daily maximum/minimum and totally retrace back. If you are watching GBP/USD pair daily movement, in most cases it draws a big 'S' around a daily average (for example: daily maximum - daily minimum - again close to daily maximum or breakout - dayly average or even daily minimum). So, this strategy, only will work with long candles (candles, not positions) and will loose almost every short one. Besides, Asian session often has strong influence on GBP/USD pair - breaking even strong supports or resistances and raising/dropping price even 100-150 pips and more. So, when placing an order, those support/resistance levels must be taken into consideration. For breakout strategy one must place order above/belove those clear support/resistance levels, not above/belove 5 hour price maximum/minimums, because price often tends to break those false levels only 5-10 pips and then totally retrace, leaving a stupid trader in deepest frustration.
So, be very careful with this one.
Regards,
Makumba Makumbre

I tested this strategy between 2011/04/01 to 2011/04/30.
This made some profit sometimes, but stop loss occurred almost always.
My demo accounts remained almost half.
In my opinion, the whipsaw is so strong recently.
Even when trend was strong, the price hit the stop loss.

Edward, Do you have any idea to overcome this situation?
Thanks in advance.

Derupi

This strategy might need a review in terms of shifting hours of the breakout range. So, if you like this breakout idea in general, just try working with other hours, if not, then simply consider other strategies. There is simply no point of losing money if the strategy can't deliver results on demo. May be in the future we can return to it again, because the main breakout idea is very viable.

Best regards,
Edward

why does thia thread show first post first and most recent post very last? Can I see the latests posts first in stead of having to go to the last page to see the latest posts?

Hi,
Nice to see your strategy.we are from India.i have little confusion regarding our time ist.you are doing in est.even though you have given explanation in starting please tell me what time i should see the 0,1,2,3,4 hours bar in indian time.more over your time calculation does not match the market opening time. so please explain what time i should follow that strategy.please tell me in Indian time.thank you,good day

Hi Edward. Extremely grateful for your time in outlining this strategy. I for one know of courses charging £1000's for way less. I'm experimenting with differing hours, TP and SL. Will comment back here. Cheers

Hutch