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,
You have a very strong point about watching important economic indicators.
I'm very positive about starting as early as 3:00 EST in anticipation of a large move due to important data release. This Wednesday and Thursday we saw lots of economic data reports (from Europe and US), which had an impact on the currency market.
Forex calendar at Forex Factory or Forex calendar from DailyFx would be a good place to learn about daily Schedules with comments to each event.
Daily reports and trading ideas can be found at:
http://www.dailyfx.com/
http://www.fxstreet.com/
http://www.pfxglobal.com/
Best regards,
Edward.
hi.. anyone having success with this breakout system? I was just reading through and find it to be easy to trade as well.. I have a question. In a week, what are the typical winning days and losing days? The worst cast scenario would be trigger both trades but ended up both in losses. How often do this happen? Very thankful for your sharing of systems!!
Current Forex system is not immune to triggering both orders and ending up with losses for the day. On what exact days one can expect this to happen and how often, it can't be foreseen. No matter how much data one collects from the past it won't guarantee future performance.
If you'd like to filter out some days, try avoiding Mondays' trading. But overall this system was made to trade throughout the whole week non stop.
I like this Forex system and I used it in the past with some good results, but now I don't really have data to backup system performance.
Let's hear what other traders have to say.
Kind regards,
Edward
Dear Edward,
Of all your price based systems that catch moves prior to volatility....which one do you think is the most reliable? Or which do you perfer in your own trading?
Many thank!
Steve
Hi Steve,
I prefer Trend lines break out system.
Regards,
Edward.
Dear Edward,
What we do with a remaining open orders after first one did reach profit target within first couple candles, should we close all trades or continue until 12:59EST.
And no need to comment my questions on strategy #5, now is clear.
Andris
Hi Andris,
If the target is reached within first couple candles I close all remaining orders; well, at times I even also say "Thank you" :)
Regards,
Edward
Hi Edward,
First off I would like to say thank you for sharing all of these great strategies. I have learned more reading through your site than I could have ever possibly learned on my own. I have a couple questions I was hoping you could answer. I know that this seems to be a very effective strategy by itself but could it be complimented by another strategy included on your site. If so, which one? Also, I have noticed some interesting things happen when on of the candlesticks within the hours we are taking into account is a doji. If one of our highest highs or lowest lows is a doji should we stay away?
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