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Forex trading strategy #20 (63 EMA breakout)

Submitted by Oladayo Sakoto

Hello my fellow traders,
My name is Oladayo Sakoto from Nigeria and i'm just a new bee in the market, actually i've been trading for more than a year now. As we know the market's reaction is a little bit unpredictable in this era and i have seen a lot of events and scenarios whereby the daily trend can be changed within few minutes. So i studied hard and did a vigorous research on this strategy and it gave me 95% of wins and 5% of loss trades. Actually i back tested it for 7 months and it gave only 5 loss within this 7 months. May 2009 to November 2008. This strategy works only for GBP/USD pair cos of its great volatility.

Entry rules:
Draw a 63 EMA accross your 1hr time frame chart. If all the candle sticks downloading from Asian session are above the 63 EMA then the bias for the breakout is an uptrend. As soon as London session opens, measure the highest of the candle stick from Asia session and filter with 5pips (for 4 decimal plattform and use 50pips for 5 decimal plattform). Place a buy stop order and aim for 30pips (for 4 decimal and 300 for 5 decimal plattform). It will give you a minimum of 30pips and a maximum of 200pips. Use a stop loss of 40-45 pips. Do the same if all the candle sticks download below the 63 EMA and place a Sell stop order with the same filter and take profit.

Exit rules:
If the candle sticks downloading from Asian session crosses accross or touches in between the 63 EMA, exit the market for the day. Problem about this strategy is that it will you minimal entries throughout the month. Maximum of 8 trades a month and minimum of 6 trades a month. But when it gives entry you can be assured of winning.

Please back test this on the GBP/USD 1hr time frame as long as you can and see for yourself. But the problem is that i'm still working for a strategy that would give me entry points everyday for any currency pair. If any one has a great discovery has this, please e mail me at dayosharks@yahoo.com....... I mean a strategy of atleast 90% winning streak.

IN ADDITION TO THE 63 EMA BREAKOUT

EXIT RULE:
IF YOUR ORDER DOESNT EXECUTE BY THE CLOSE OF THE 11:00 GMT CANDLE... PLS CANCEL YOUR ORDER AND WAIT FOR ANOTHER DAY. THE FIRST THREE HOURS OF THE UK OPEN HAS MOST OF ITS STRONG MOMENTUM AND VOLATILITY COS THEN ASIA IS ABOUT ROUNDING UP. TANX AND HOPE YOU MAKE ENOUGH PIPS.

MORE TIPS:
IF I WERE YOU, DUE TO MINIMAL ENTRIES YOU'LL GET IN A MONTH, I'LL AIM FOR 40-200 PIPS TARGET AND TRAIL STOP LOSS OF 30 PIPS. 30 PIPS IS SO SURE!


http://forex-strategies-revealed.com/


Hi Oladayo,

Can you let me know what times you are using for the Asia session? I presume midnight GMT to 7am GMT?

Thanks
Rich

Hi Oladayo Sakoto looks nice strategy so far but if you can please specify some points
1- is this strategy is for only buy trades?
2- the winning ratio you told is for 30 pips take profit or 200 pips take profit?
3- if you can post any example chart it would be great

anyway Thanx for sharing such a good winning ratio strategy keep it up

Oladayo my name is cumali.ı backtested your strategy from 1.1.09 to the current time and ı think you are making a big mistake because ı found at least 16 loss!! and if you want ı can prove this with the screenshots! ı think you must develop your strategy..thanks anyway..

Hi Oladayo,
Can you please clarify what you mean by "measure the highest of the candle stick from Asia session and filter with 5pips". What do you mean, filter with 5 pips?
Thanks, Dennis

Hi Cummali,
I got ur message and i want to tell you that you are wrong. Maybe you didnt understand how i told you to set up the strategy. I will never use or post a strategy that doesnt have 95% win.....never......not in the forex market. You didnt get the strategy and how to use it. The worst that would happen is that your trade wont be executed. If your trade doesnt execute by the close of the 11:00GMT candle stick....exit the market. That is if your order doesnt execute within the first three hours of the open of Uk session..exit the market cos thats when volatility takes place. Now go back and test it again ok. Do it right as i told you and write me back. Remember do it right!!!!

Dear Richard,
You are right about the time.... midnight to 7am GMT

Answer to your questions...

1. It is not meant for only buy trades,it is meant for both buy and sell. If the candlesticks downloading from Asian session till Uk opens is below the 63 EMA, then you should place a sell order. You cant hedge or straddle this strategy, i believe traders who straddle or hedge dont know what they are doing.

2. The winning ratio is 95% and 5% loss... What i meant by 30pips is your take profit. If you are using MT4 which uses 5 decimal points then it would be 300. I would prefer you go for 40 pips instead of 30pips cos atimes it gives 200 pips thats 2000 for MT4 platfform. So that you'll be using 1:1 wining to loosing. But trail 30pips down so as to lock profit. 30pips is too sure!

Dear Dennis,
I mean check for the highest high figure downloading from the Asian session and add 5pips to filter for 4 decimal point plattforms and use 50 for MT4 plattforms due to 5 decimal points. Get it Dennis?

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