Advanced system #4-a (London GBPJPY breakout)
Submitted by Edward Revy on March 2, 2009 - 16:24.
Submitted by Stuart Williamson
This strategy is based on the London Market.
Currency Pair: GBPJPY
Timeframe: 1 hour
Strategy:
Before London opens, at 08:00 GMT, mark the High and Low of the last 4 hours - from 04:00 until 07:59 GMT. Set your Buy and Sell orders 10 pips away from those highs and lows.
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Hi everybody,
I made some adjustments to your system. I use 5 min chart with Accelerator/Decelerator and Awesome oscillator.I also use MACD(20,50,5) to see the overall trend,and EMA50 which is a great support and resistance in the 5 min chart. Usually from 7:30 to 8:30 and from 12:30 to 13:30, the GBPJPY pair has the 2 major breakouts from 80 to 220 pips and some times more. When the market movement is going down watch for a big candlestick below the 50 EMA. Then the downtrend has start for sure. The uptrend is slower and needs more time. The downtrend is more fast. I use the 5 min chart because you loose a lot of pips with the 30 min chart. Even after a downtrend the market is moving up, a lot of times the price candlesticks don't brake the 50 EMA so the downtrend will continue. Always check for a downtrend breakout the MACD to be below 0, or above 0 for an uptrend.
You may check my system and let me know your opinion.
Best Regards,
Pantelis
Great stuff, Pantilis!
Thanks a lot for sharing your feedback and modification rules.
That's the kind of feedback we need to keep this strategies improving.
Cheers,
Thomas
hey stuart or edward.
another great strategy from stuart!!....ok..i am new ..and so still working thru some basics.......i wonder..1) do you put in a oco...or have it cancel the other side automatically...or do you watch the trade and cancel it yourself???and also
2)i have not worked with trailing stops yet.......do you do that manually as well...or is it set with an automatic trailing stop??
thanks again
dave in virginia
Hi Dave,
The first is ideally an OCO order, if your trading platform supports it, otherwise, you'll need to cancel the opposite order manually as soon as one of them is triggered.
The trailing stop in this case is manual, because you want to move the stop behind the last hourly candle, while the length of each new candle will be different, thus a fixed step (distance in pips) for the trailing stop won't do the trick.
Best regards,
Edward
HI Edward, what do you think if i use this method, but refine the TP and SL to 30pips each for EURUSD. Am thinking that i could leverage on the huge movement at london open to make a quick kill. Since the SL is relative some, I could be trading more lots instead of trying to get the 100pips? I'm quite new to forex, what do you think?
Regards,
Gary
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