Forex trading strategy #7 (Simple breakout System)

Dear Edward,

Concerning the Bollingar Band settings,I made it like this:
Period:10,Shift:0,Deviation:1.5 but deviation wasn't accepted&turned to 1.Please clarify your settings again.

What if the bollingar band doesn't agree with the trend of the 5m. frame,do you advise me to follow the bollingar or stop trading that day?

On yesterday's trade which was short the price touched the stoploss then got down to the target aftewards,accordingly,what do u think if we widen the stoploss by adding the spread?

Thanks a lot,
Dr.Ashraf

Dear Dr.Ashraf,

The deviation is exactly 1.5. May be your trading platform has limitations on that.

...If you don't follow the 5 minute chart rule, then it is already another system, which uses Bollinger band to trade breakouts. If I were using an additional indicator for this system, in our case it is Bollinger band, I would combine it with 5 minute chart rules and trade only when both agree on a signal and direction.

Speaking about a Stop loss. As long as you are comfortable with widening the stop loss it is absolutely ok to try it out. I never did it, I don't know if this would solve the problem of being stopped out. Keep us updated on the results of your trading with this or any other system.

Thank you.
Edward.

Dear Edward

Another 2 questions:
My local time in Egypt now is (GMT+3) due to (DST) so, according to GMT time our candle is 9 am but according to EST time (EST+7) it is 8 am candle...What candle should i consider?

If there are important news specially for the pound, do you advice not to trade that day?

Thanks for your concern.
Dr.Ashraf

Dear Edward
me too like Dr.Ashraf the The deviation does not accept 1.5 value. may
i ask what chart or trading platform do you use wiht this strategy ?

and how for how long did you try it?

Thanks alot
Prince1972

Dr.Ashraf,

I use EST time. Actually, London now also has DST time (GMT + 1 hour), so you will still have the same 8 am candle. There might only be difference in hours when countries start switching from daylight to standard time as each territory has its own month and day to do that.

I would suggest using Forex market hours tool at http://www.forexmarkethours.com/ to make sure you are looking at the candle that represents the hour before London open.

Regards,
Edward.

Prince1972,

Oanda trading platform http://www.oanda.com/ allows me to use 1.5 deviation settings for Bollinger Band.

... The strategy is old, the idea of adding Bollinger band was found couple of days ago... I'm with Oanda for several years.

Best regards,
Edward.

Dear Ed

So, it is 8-9 candle my time..!!!
I got 10 winning trades with 9-10 candle but now I got 4 loosing trades this week..
It seems that I would convert to 8-9 candle as you adviced me...

What about news...Could we use this strategy in acse of powerful news?

Thanks.
Dr.Ashraf

Dr.Ashraf,
Nice to hear from you again. Sure, try using 8-9 candle.
As about news, I must say that if you really know fundamentals well and can interpret and use the news for trading, then of course your trading should have a more advanced edge.

But if you look at an economic calendar just to find out about existence of any news for a current day, and you cannot tell what reaction the market will have and, more importantly, which way it will most likely go after the news release, then I would suggest not taking news into consideration at all. Just make sure you have your stops in place and if your trading position was wrong, you will be stopped, that's it; and, of course, rewarded generously if the news push the market in your favor.
If you ask me, I don't use news, because I'm not that good at fundamental analysis.

Best regards,
Edward.