Advanced system #4 (Early bird Breakout System)

Hi Manzoor,

Yes we can trade AUS/USD, USD/JPY and GBP/JPY pairs with this strategy.
Ideally we want to see as narrow range between High and Low as possible, which would mean that a breakout is due; and of course avoid too wide ranges as they also require wider stops to be set.

By using this common logic you may start testing those pairs.

For example, for the Yen we have some first fundamental indicators released at 1-2 am EST, which may move the market by decent amount of pips in early hours and thus make our evaluation range too wide...

Regards,
Edward

Thank you so much for your good good reply

Regards

Manzoor

thank u very much...i been using this system and get good profit...simple and excellent....thanks

Hi,usually there are rallies amd to place the stop order in recent high or recent low has a lot of pips because there are not highs or lows, the last high are pretty high or recent low is pretty low, in these cases where should I place the stop orders?

Thank you and Regards,

Good point.
In this case I'd pull Fibonacci retracement levels and set a stop behind 0.618 level.
Or in case there is any daily pivot level closer to our entry - then behind that pivot.

Regards,
Edward

Hi Edward,
Thank you for all you have done for us through this medium to enhance our trading times. I set my trade as described here for the breakout strategy but my profit will never run if my position is hit. what do think/suggest is happening?

My regards
Chabal

Hello again, Edward.
Just a comment/question on some things I've observed while giving this method a test run. I understand your saying that ideally we want to see a tight range with the 5 candles so as not to risk a huge spread between the high & low, however my experience seems to be that the greatest moves & therefore greatest profits occur when setting this style trade up when there's been lots of price movement. Even though there's a "higher risk", the price always picks one direction and goes with it, never threatening my other entry order or stop loss for the active trade. This method has been successful 100% of the time for me, except for when I set it up after 5 very close "ranging" candles. Twice now I have lost with a position such as that as it seems to eventually hit one of the entries & then continue bouncing back and forth in the opposite direction, eventually hitting a stop. I was wondering if perhaps you had any tips to clarify when we should enter for certain with this method, and when we should stay away.
Thank you again, Edward!

First of all, thank you for your comment and research.
I have a clear understanding of the situation you've described, but so far wasn't able to find a solution for it.

It appears to be that time when we have to accept losses, at least for now, till we find the way around.

Thank you.
Regards,
Edward