Advanced system #4 (Early bird Breakout System)
Submitted by Edward Revy on May 27, 2007 - 03:54.
Another advanced morning strategy tightened to the timing factor and only two currency pairs.
Trading setup:
Time frame: 1 hour.
Currency pair: preferred but not limited to EUR/USD and GBP/USD.
This Forex breakout system uses no indicators.
Trading rules:
The system is called "early bird" because it requires a trader being ready to trade Forex as early as 5:00 am EST.
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Hi, i need to know if im doing this right. Im currently on London GMT time, would, 5,6,7,8,9 be the times i'll be marking the highs and lows of; and entry would be the begining of 10 and ending would be 17:59?
Thanks
Yes, you've got the right hours for GMT.
Happy trading!
Edward.
I'd like to query about something if i may; - has this strategy been backtested?, and if so what are the drawdowns. It is an absolute fantastic strategy, but i'd be more confident trading with it knowing it has good history.
Just to add, this site is brilliant. Edward, you and your partners/friends have done an excellent job and i can't thank you guys enough - i wish you good karma.
I test all strategies in real time, therefore I have no specific backtesting results for this one. I'd appreciate if someone could post such results here.
From my tests and observation, it's a good and profitable strategy. It's not immune to losses, but overall performance is positive.
The biggest drawdown is, probably, wide stops requirement that occur from time to time as a result of wide trading range of 0:00 - 4:00 am candles. Such wide stops may not comply with money management rules for those traders, who risk large amounts of initial capital per trade.
In such cases traders should try avoiding days that require wide stop trading. However, as we know, the higher the risk, the higher the reward. Our task is to find a balance between risking less and winning more.
Regards,
Edward.
Good deni. I from RUSSIA. Can Not understand that signifies EST on GMT. How much time on EST if on GMT
EST stands for Eastern Standard Time.
EST = GMT - 5
There is a good online application that may help you further at www.forexmarkethours.com
Regards,
Edward.
thank and want you successful trade
Hi Edward,
thank you for all the information, i have tried this estrategy but i have a question: What do you think about the days when some important economic indicator is going to produce an early activity, should we have to start before 5:00 EST, lets say 3:00 EST? Last november 14th and 15th had big activity before 5:00 EST. Was the forex market anticipating to some data release of the US gov.? Or was an effect of an Europe data? Where can i find information about the must important economic indicators and how to trading minutes before the release of them?
Thank you again,
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