Developing a system #17 (19 PIP Breakout)
Submitted by User on July 16, 2009 - 20:12.
Submitted by Daniel
This strategy is very similar/based on the numerous breakout strategies already on here. I target two trade times 08.00GMT and 13.00GMT. I look at the previous four hours of trading and find the low/high.
I then create one buy order 3 pips above the hight and one sell order 3 pips below the low. The order is an OCO order so only one trade can take place.
I set the stop at 10 pips and the target at 19 pips.
I have found in testing this that for 08.00GMT the best 2 pairs are AUD/USD and GBP/USD. For 13.00GMT GBP/USD and EUR/USD.
Back testing has shown a winning percentage of around 45-48%. Because the wins are more than the losses this seems to offer a healthy profit. I am demo trading this now but was interested to see and ideas you or other may have about this. One thing I can't put my finger on is why some months are better than others. I have tried to see if ADX, Volatility or Momentum indicators will further increase my winning % but have not been successful.