Advanced system #7 (EUR/USD breakout system)

Hi Egudu,

If the price is in between Vegas channels and 400 SMA, no orders should be placed.

As far as I see it we are planning to go Long with Vegas being above 400 SMA and entry price being at least 35 pips away from Vegas tunnel. Opposite for short.

Regards,
Edward

Hi, thanks for this method, but i would like to be clear in some things here, do you still put pending order if the price is between the vegas channels and the 400sma, or would that still be a valid set up?

Egudu.

Hi Herbert,
"Limit" here represents Profit Target value.
First we count Limit in pips, e.g. our target in pips.
(For Chance 2 we had a profit target of 52 pips)
Then we add those pips to our initial entry value to identify target price value on the chart.

Regards,
Edward

Hi Edward,

I am confused by the "limit order".
What is meant by the limit order? Is it a limit sell? i.e. price will go up to the limit, and be opened as a sell? What then?

Regards,
Herbert

Hi Shaun,
While testing current system I saw 3am to 8am GMT time period giving more accurate results. That's why I posted my observations here. Try using 3 to 8 am GMT.

Regards,
Edward

Yes, you should use 1GMT to 6GMT, 6 candles in total.

Regards,
Edward.

Hi.. My broker is using GMT time for candles. So I would need to follow the above mentioned timing which is 1GMT to 6GMT, total will be 6 candles??

You are welcome.
Yes, that's correct timing for GMT+1 zone.

hello Edward,
Thanks for this wonderful opportunity.
Pls I'm in GMT+1 does that means I would need price between 2:00am-7:00am?
Pls clarify.
Muyiwa.

Hi again,

Actually, the close of 8am GMT candle would mark one hour of trading since London open. That's why I believe it will be enough for us to plan entries on the close of 8am GMT candle. However, while testing the system I also took a glance at the range you've mentioned (3am to 9am GMT) and found it profitable as well. It would be great to learn about backtesting results. Looking forward to hearing from you!

Regards,
Edward.

Hi Edward,

Thank you for your quick response. I seek further guidance in understanding this system. Please confirm that limit orders as described above are placed at the close of the 0800GMT candle. The reason why I ask is because this coincides with the opening of the London Market which can be quite volatile. I would think that it would be safer to wait until the end of the first hour of London market opening prior to placing trades. This would mean that the time range waould be from 0300GMT to 0900GMT. I will backtest and compare results. I await your expert opinion. Thank you.

Hi,
If you use GMT zone, then you would need 3am to 8am GMT.
If you are in GMT+2 then your hours are 1am to 6am GMT+2.

Regards,
Edward.

Hi Edward,

Thank you for sharing yet another promising system. Please confirm the time period in GMT. Does GMT+2 mean 0300am to 0800am. Thank you.

I'd like to clarify time zone settings:
Was it GMT or GMT+2 used above? From the screen shot it looks as GMT+2 (that's what I get when I try to set up and match it to my own charts...)
Also while testing the system I found it to be working much better (yielding more profitable trades) with GMT+2...

The system is very good and the math behind it is even better.
I've been thinking this week about filters we could add to eliminate additional losing trades, but despite numerous attempts and tests I haven't found the way to improve the system yet.

I'll keep testing and also I want to invite all users to participate in this discussion. Any ideas and comments will be appreciated.

Kind regards,
Edward.

First of all, let me thank you for this great post.
From the screen shot example the strategy looks solid. I would even say, I'm a bit baffled by its precise math at some points...
Let me test it this week and then I'll gladly provide my comments on it. (Also most likely we will move this topic to a separate page).

Thank you once again,
Happy trading!
Edward.