Advanced system #4 (Early bird Breakout System)

Hi Edward,

I trade daily using this system on GBP/USD, and it works quite well. I want to diversify with another currency that has low correlation with GBP/USD. What currency would you recommend, and at what time should I set up this system?

Regards,
Raven

i like this web site and both of the breakout system, im style demo trading but hope go live soon:)

Hi Raven,

You may test it with GBP/JPY and USD/JPY; although they are not exactly in very low correlation, they should respond quite well, besides they also have (especially GBP/JPY) high daily range average, which means even a small breakout should yield some good pips to collect.

Here you can always check on correlations for currency pairs for different periods of time:
http://fxtradeinfocenter.oanda.com/charts_data/fxcorrelations.shtml

Best regards and sorry for the delayed answer (had some work to finish)...
Edward.

Hi Edward,

I read that some people determine the 6 - 10 CET and 10 - 14 CET for GBP/USD. Is that the same time range that you recommend? If it's not, which one is better?

Yes, 6 - 10 CET is the same as 0 - 4 EST. It is a good time to catch morning trends. That's the one I'd recommend. The second one 10 - 14 CET is less lucrative; in case there were no significant move in the morning, or a trader didn't make any profits during the first half of the day, he/she can try catching an afternoon trend.

Regards,
Edward.

Hi Edward

I am new to forex trading. Trading on my demo for the past 3 months and intend to go live pretty soon. I have gone through a lot of systems posted here in this website. This is what I want to ask you. Is scalping or swing trading better? I don't care which system I follow as long as I make money. I have the discipline and patience to stick to the rules. I usually get these 50's here and there scalping but do loose a lot during news and other times. And kindly suggest one or two systems you want me to seriously follow. Waiting for you reply.

Thank you.

I have to mention I am having a great here and learnt a lot.

Krishna Karthik

Hi Krishna Karthik,

What is better scalping or swing trading? Hm... If you ask me, I vote for swing trading. I like to hold on to my position as long as I can, or rather as long as I can make profits out of it, I trade 3-4 hour charts and higher.
But, if you ask my colleagues, let's take Alex Wakemann, he would deny my long term trading and insist that real profits can be made only and only with scalping approach... (We had those endless conversations long time ago).

There is one thing that would probably determine what method is more suitable for you. It is about time. Scalpers need a lot of it to make good profits, while position traders need usually only from 5-15 minutes to at most 45 minutes to check up on/arrange their trades for the day.

And definitely the system you trade matters.
My favorite systems and setups are:
1-st chart with Forex advanced system #3. The setup doesn't happen too often but when it does profit potentials are very high.
2-nd chart with Forex advanced system #1. Perfect for position trading.
3-rd chart with Forex advanced system #5. When my schedule allows I love trading this intraday system. If you find this one difficult, you can substitute it with Forex advanced system #4, the one posted here above. It has the same good potential of catching early breakouts.

Do I scalp? Yes I do, occasionally. Mostly I work on my own method of ultimate safe scalping. Still developing. It is also a great exercise at a small cost when I feel a need to trade here and now in a fast action mode.

Try out those methods above, they should take very little of your time and make good returns. Happy Forex trading!

Kind regards,
Edward.

Thanks a lot Edward. I really appreciate you taking time to help us out. I shall try the above methods mentioned by you.

Thanks once again.

Krishna Karthik