Advanced system #4 (Early bird Breakout System)

Hi Edward,

I currently new to FX trading and has just being going on demo. I would like to check with you 2 things since I'm a bit lost here. Firstly, how do you determine whether to buy or sell and my current location is Singapore, so 5.00am EST is 8.00pm Singapore time or am I wrong here?

Kind regards
Ryan

Hi Momo,

The standard time zone in Malaysia is GMT+8.
EST time = GMT-5.

so, we have to add +13 hours to our time:
00:00 EST = 1:00pm in Malaysia
5:00 am ET = 6:00pm in Malaysia

Kind regards,
Edward

Hi,i live in Malaysia.wat time should i follow according to 00:00 EST to 5:00 am EST?Thank you.

Momo

Hi,
With advanced #5 you can filter trades to those days where your required Stop loss will be set to no further than 20 pips while using to the original rules of placing stops.

For all other breakout methods, its totally up to you what risk:reward ration to use. So, if you need it to be 2:1, you just set the TP and SL accordingly.

Kind regards,
Edward

Hi Edward and fellow traders

I would like to ask you if anyone has any feedback as to which breakout system is more reliable?? I have studied Advanced 4 and Advanced 5 and Simple 7. I realize that questions have been closed for a while now about Avanced 5 but I would like to know if anyone can help me regarding PROFIT / LOSS ratio. I would like a ratio of 2:1 - Is this possible with any of the above strategies? Any help would be greatfully appreciated.

Hi Peter,

I've found that comment.
According to Andreas, the candles should be counted from 00:00 CET, and you'll be looking to place trades starting at 5:00am CET.

In Jakarta, Indonesia it would refer to 8:00am and 13:00 accordingly.

Kind regards,
Edward

Hi Andreas, Thank you for sharing your version of this strategy.
You said that you use 5:00 CET as opening time and 13:00 CET as closing time.
Does it mean that you start counting your 5 candles at 5:00 CET or 00:00 CET?

To my knowledge :
CET = GMT + 1.
CMIIW, Due to I am here in Jakarta, Indonesia (GMT + 7) the time of your version for me :
00:00 CET would be 08.00 am ? &
05:00 CET would be 13:00 (01:00 pm) ?

For Edward please help.

Best Regards
Peter

Hi AC,

it's good that you're trying different hours. Breakout strategies tailored to certain market hours always work, but the timing may shift, requiring traders to adjust as well.
One of the examples can be with news announcements. When traders are interested in certain economic events, they will pay more attention to the hours when those news are released, which can impact the overall breakout timing for the market for several weeks etc.

The best solution is to adopt the breakout strategy, but use the hours, which market tend to respond well to during the past 1/few months or so.

Kind regards,
Edward

Hello,
First of all thank you for this great site! I am new to FX trading and am currently on Demo.

I've recently started to test this strategy, however I am having little success using it to catch the break out pips on the New York open. (For example: the price at 5am EST is very close to the high of the 5 hour period, thus my limit buy is easily activated only to reverse down shortly after ending in a loss).
I followed everything as mentioned in the strategy. Am i doing something wrong here? By the way I live in Singapore so my time here for New York open is 8pm.(According to my local forex broker's website)

From my trial and errors, I seem to have more success capturing the trend using this strategy on the london open at 3am EST(which means I set my limit buy/sell at 12am EST)
I have not tired it long enough to conclude its long term success but I seem to be able to get at least 15- 30 pips from using this system on the london open.
Can anybody with past experience on trading during london period tell me whether what I am doing is a viable strategy in the long run?

Thank you !!
AC

Hi Daniyal

Thanks for the great feedback and summary on your trading strategy, it's highly appreciated!

Best regards,
Edward

Hello Everyone,

I backtested this strategy almost on every pair.

Without any doubt this strategy is very usefull and can be very profitable if applied on right pairs and with proper money management (Individual prospective).

The best paired I observed so are divided into 2 catagories:

Topper : Eur/Usd, Eur/Jpy

Then: GBP/Jpy, Cad/Jpy, Chf/Jpy.

Lower: GBP/USD (40% Profit, 60% Loss) USD/CAD. (All result are based on personal obersvation & not challanging anyone)

Regarding Money Management which I used.

Creates An OCO Order(Buy & Sell)which ever comes first, with 3 Lots each Time but with different TP and same SL for each.

Example: 1 TP @ 30 Pips. 2 TP @ 60 Pips. 3 TP @ 90 Pips (Total = 30+60+90=180).
Example: SL 50 Pips (50+50+50=150Pips)

When first TP Hit Move Stop Loss to 50%. When Second Hit Move Stop Loss to Breakeven. If market is very slow & seems to be going now where then move stop loss according to the situation Above than Breakeven e.g 40+ pips.

Last thing: This strategy can give you really good pips on few pairs and very huge loss as well but profit probabality is higher according to facts & figure.

For GBP/JPY you can expect profit up to 200+ Pips, Eur/Jpy 150+ pips etc. On others depend on average moves.

If you are operating with one lot then try to move stop loss after 30+ pips.

Thank You,

Daniyal Khan.

Hi Mirek,

yes, we can, as long as indicators improve our odds of being right.
I haven't suggested any indiators here yet, but even a simple moving average to help us get a feel of the trend would work. Try SMA 200 for a major trend and SMA 50 for a mid-term trend.
Place breakout orders only in the direction of the trend.

Best regards,
Edward

Hi,Edward
You doing great job in this site and the best its free for everyone.My question is,can we combinate this system with others indicators?Thank you,regards Mirek

Hi Leo,

When we Buy we add 5 pips above the highest high within 5 candle range.
Same, when we Sell, we enter 5 pips lower than the lowest low found within the same 5 candle range in the morning.

Buying and Selling is attempted on the same day. After 5am we place both orders: 1 is to Buy should the price break above the 5 candle range +5 pips, and 1 order to Sell should the price break below the 5 candle rage +5 pips - all happen on the same day. As the new day starts the new 5 candle range will be found and new Buy and Sell orders will be set.

Best regards,
Edward

Hi Edward,

When we say +5 pips,we will add 5 pips to the recent price above the highest high?
Buying after 5:00 am the previous day and Selling the next day.this is correct?
or Buying and Selling at the same day at the same time.

Leo