Forex trading strategy #7 (Simple breakout System)

Hi Edward,

I have a blogger and I would like to post your strategy on my forex blog, in portuguese, so I am asking permission to do that. If you agree with that, I will obviously post your name and a link to here.

What do you think about it?

Best regards, Rui

Hi Rui,

Thank you for asking.
Sure, it is ok to post a strategy or two in your blog while linking back to our pages.

I hope that you'll use my permission wisely, but I have to make a note that extensive re-posting of our content is not permitted.
Thank you for your understanding and cooperation!

Best regards,
Edward

Hi Edward.

I won't abuse, posting many strategies of your authorship.
Thanks for your permission!

Best regards,

Rui

Ok guys so I programmed an EA based on just the original set of rules on this one and have backtested and here is what I have found. Starting with a 10,000 account backtested about 6 months gives a 17,100 balance. I found the 5M chart to be good, the 1H chart to be better, and the 4H chart even better (4H chart was tested by accident) after optimizing I found the best settings were 90pip stop 50pip take profit. I am wondering if anyone has any suggestions on what I might be able to add to this EA to get the risk to reward ratio to a more comfortable level even though it performed very well that risk reward ratio concerns me.

Thanks

I've got no additional suggestions so far. Would appreciate any ideas from other members.
Thank you for sharing the results, great job, great feedback!

Best regards,
Edward

Hi Edward,

My name is Dimitris and I am new to forex trading and your website has helped me a lot and I would like to thank you for the time you spend for us!

During the last two months I am trying to complete my trading plan and I am trying to find a strategy to use for moving from the demo account to a live one (I'm not really sure if it is correct for someone to spend two months preparing a trading plan and a few time in front of a demo account!!!!).

My question is this: Using a demo account, I have been testing statistically this strategy with the numbers provided from 4 weeks (22/03/2010-16/04/2010) and I see that the two weeks (22-26/03 & 05-09/04) give you only a total of 20 pips each, one week (29/03-02/04) gives you -20 pips and the last week (12-16/04) gives you a total of 60 pips. I was wondering what is the average number of pips we expect from this strategy per week or per month? Can you suggest anything for false signals to a novice trader as myself?

Thank you in advance for your time!

Kind regards,

Dimitris

Hi Dimitris,

it would be difficult to give the numbers, since we have constantly changing market conditions and every month it could be something new.

I would definitely recommend spending more time on the demo account. Besides, try to start with the exact amount of money you're planning to invest in the real account. This way you'll get the best experience on demo and will know whether you're ready for a live trading.

Kind regards,
Edward

Thanks a lot for your advice and your time!

kind regards

Dimitris