Advanced system #5 (Trend Lines Breakout System)

Hi Krishna,

If a candle broke our trend line this means we had our position filled. By that time we couldn't know if a breakout candle was going to be a Doji on the close...

Once it closed, we don't want to exit our trade after only 1 hour of trading just because we got scared of a Doji. I wouldn't even move my stop to break even, however, some traders may find it reasonable.

Trading can bring a lot of surprises, sticking to the rules when you are confident in your Forex system is always rewarding.

Profitable trading!
Edward.

P.S. Don't be sorry for asking questions. I'm always glad to help you and everyone here.

Well, I got stopped out Edward! Thats fine and I learnt a lot. It was bound to happen sometime. It gave me winners for 10 straight days. This is the best trading system I have ever come across. Thanks a lot. This is what I want to ask you. If we get stopped out and our other trend line gets broken, can we enter trade accordingly or if we have a loss it is thats it for the day? What I also found out was that if we had a 30 pip take profit and 30 pip stop it was more consistent. Do you think this conservative approach is fine or you think the 40 pip profit or next 3 candles and top of candle stop loss is much better. I shall value your advice and follow that.

Thank you.

Krishna

Hi Edward,

Another one from me.If we get stopped out and our other trend line gets broken, can we enter trade accordingly or if we have a loss it is thats it for the day? Also can we trade 30 pip take profit and 20 pip stop loss. Do you think this conservative approach is fine or you think the 40 pip profit or next 3 candles and top of candle stop loss is much better. I shall value your advice and follow that. Thank you.

Krishna

Hi Krishna,

If we got stopped out and later found another trend line breakout in the opposite direction, we can enter again even when in our previous trade we had a loss.

Fixed amount of pips for either stop or profit doesn't provide much flexibility in a trade while this Forex system has all the rights to have it. Therefore, my choice is to target Pivot levels or close after 3 hour (3 candles) of trading and set stop loss above/below a breakout candle. You are welcome!

Best regards,
Edward.

Hello Edward,

I read that pivot points are calculated according to the close of the New York session in babypips. But in a response above you mentioned that they are calculated according the close of each day. Which one should I follow? Should it be the New York session or midnight to mid night each day. I hope I am not bothering you too much. Thank you.

Krishna

Hi Krishna,

There are many opinions about the right and best time based on which pivot points should be calculated. There are at least 4 known to me ways to calculate pivots:

from midnight to midnight local time,
from midnight to midnight New York time,
from New York close to NY close,
from London close to London close...

Trader's opt for the time they like. Again opinions here are different. I use NY midnight time.

You are welcome!
Edward.

Hello Edward

I have a small doubt. If we get stopped out you said we can enter trade if the other trend line is broken. But can we re enter if the same trend line is broken again. For example, we enter a sell trade as our trend line is broken. But we get stopped out. Can we enter into another sell trade is the same trend line is broken again after some time. Thank you.

No, I wouldn't enter twice on the break of the same trend line; e.g. when we sell and later got stopped out, we don't sell again.
I only look to place an opposite order - buy order in this case - if the other trend line is broken.

That's the exact rules I use. I don't enter twice in the same direction. How successful were you with such re-entering? Please feel free to comment, propose, advise - we are always glad to hear from our users!

Regards,
Edward.