Forex trading strategy #7 (Simple breakout System)

Hi Edward,

I started using this strategy 2 months ago and what best works for me is:
1. S/L=range of the tunnel
2. TP=45pips and I use TP1,2,3 Basically I move S/L manually just under the highest low or the lowest high of closed 5M candle.

20 pips S/L works like spike magnet for many brokers, many times i watched my S/L get hit than a while after TP1-3 was hit. Also my mentor and great trader never ever uses S/L smaller than 30-35pips. I also always determine long term trend on a daily,weekly chart and use TL's and support,resistance lvl's. As for indicators most of them are useless indeed due to being laggy, I use only Fractals, Parabolic SAR and EMA 10.
Loses are part of the job but good Money management is the key to success so if you have 2 losing trades STOP trading for the day and never ever try to get your money back on same day as you will only lose more. Also never make a trading decision based on open candle.

Thank you Edward for great job you doing here and good luck to you all!
Have a great weekend and fantastic trading weeks!
May all your trades be winners!
S.Z

Thank you, S.Z

Good luck in your trading as well!

And thanks for a valuable comment and the insight into your Forex trading approach.

Kind regards,
Edward

Hello User,

related: "Ok guys so I programmed an EA based on just the original set of rules o"

I am a EA developer and trader . I believe can help you with my existing framework to get the EA profitable. It provides you with sophisticated exit strategies and you can simply add any strategy in an extra mq4 file, which you can maintain yourself without bugging around with lots of code around the trade management.

so if you, (or anyone else here) wants to give it a try adding your entry signal to the system, I would give away the core trading system for free.

I would support with additional features if you need more functionality to it.
I would assist with optimization of the strategy as well with providing VPS systems to forward test.

I am not selling the system or any of my existing successful strategies. plz dont ask me this.

But I am looking for partnership in such projects to gain inspiration. most strategies are not profitable simply by entering an entry signal +TP.
Automation and trade management are the science to make even a 50/50 system profitable. I believe I have already a solid fundament for that.

Actually, I got confused about H1 candle. EST timing now has been changed. Please let me know exactly the timing of the strategy.

Regards
Uniperse

When the EST timing changes, you follow it. E.g. when it changes to daylight GMT-4, you still use the same hours: 1:00am EST (GMT-4) to 2:00am EST (GMT-4).

When it goes back to Standard time (GMT-5), you'll use 1:00am EST (GMT-5) to 2:00am EST (GMT-5).

Thomas

Thank you Thomas.

hi Ed and all
i think this site great. but got a quick question about Advanced system #5 and 7 Simple breakout System they seem to be very similar apart from the simple one focuses on one hour break out and advance 7 of the trend line. But its around the same time so my question is the simple one slightly better as it has quicker entries or is is prone to have more losses as and may not be as reliable as the trend break out because it simple takes in more information in calulating its line.

Also how would thing play out if you were to combine the 2 on good days a would guess it would give a buy signal on both and get good profits. But say u get a but signal on the first one u make 20 pips and then goes through the trend line system to the down side. I think i could work to both side but not sure was wondering others oppinion.

and just generally how these two would work together maybe you could add to your position after the break of the trend lines. This is all assuming the trend line break would be futher away the the break of the 7:05 am break
looking forward to hearing your oppinions i am new and was really wondering which one to use

I had a quick look at them they seem to show very similar lines for the break out so guess they just confirm each other but on days where there isnt no up or down trend line i guess you could use this break out stratergy.

thank karl

hi ed and all
what would you say if the 5 min entry occured but on the 5 mins chart stocastics where in over bought area and it broke to the up side this would show at least for the short term it may be a false break out as not much momentum here. Would you think of maybe waiting for it to retrace back into the channel and wait for another break out this has happen to me before there where to big up candles but didnt start outside the channel line so waited next candle did. I enter as this candle shot up but finished like a hammer candle(not sure with names of candles look to reverse) then it went back down and took out my stop nicely. Also there was down divergence in macd 5 mins chart and it later time frames too.
heres the chart let me know what you think and if i did anything wrong