Advanced system #4 (Early bird Breakout System)

hi.. anyone having success with this breakout system? I was just reading through and find it to be easy to trade as well.. I have a question. In a week, what are the typical winning days and losing days? The worst cast scenario would be trigger both trades but ended up both in losses. How often do this happen? Very thankful for your sharing of systems!!

Hi,

You have a very strong point about watching important economic indicators.
I'm very positive about starting as early as 3:00 EST in anticipation of a large move due to important data release. This Wednesday and Thursday we saw lots of economic data reports (from Europe and US), which had an impact on the currency market.

Forex calendar at Forex Factory or Forex calendar from DailyFx would be a good place to learn about daily Schedules with comments to each event.

Daily reports and trading ideas can be found at:
http://www.dailyfx.com/
http://www.fxstreet.com/
http://www.pfxglobal.com/

Best regards,
Edward.

Hi Edward,
thank you for all the information, i have tried this estrategy but i have a question: What do you think about the days when some important economic indicator is going to produce an early activity, should we have to start before 5:00 EST, lets say 3:00 EST? Last november 14th and 15th had big activity before 5:00 EST. Was the forex market anticipating to some data release of the US gov.? Or was an effect of an Europe data? Where can i find information about the must important economic indicators and how to trading minutes before the release of them?

Thank you again,

thank and want you successful trade

EST stands for Eastern Standard Time.
EST = GMT - 5

There is a good online application that may help you further at www.forexmarkethours.com

Regards,
Edward.

Good deni. I from RUSSIA. Can Not understand that signifies EST on GMT. How much time on EST if on GMT

I test all strategies in real time, therefore I have no specific backtesting results for this one. I'd appreciate if someone could post such results here.

From my tests and observation, it's a good and profitable strategy. It's not immune to losses, but overall performance is positive.
The biggest drawdown is, probably, wide stops requirement that occur from time to time as a result of wide trading range of 0:00 - 4:00 am candles. Such wide stops may not comply with money management rules for those traders, who risk large amounts of initial capital per trade.
In such cases traders should try avoiding days that require wide stop trading. However, as we know, the higher the risk, the higher the reward. Our task is to find a balance between risking less and winning more.

Regards,
Edward.

I'd like to query about something if i may; - has this strategy been backtested?, and if so what are the drawdowns. It is an absolute fantastic strategy, but i'd be more confident trading with it knowing it has good history.

Just to add, this site is brilliant. Edward, you and your partners/friends have done an excellent job and i can't thank you guys enough - i wish you good karma.

Yes, you've got the right hours for GMT.

Happy trading!
Edward.

Hi, i need to know if im doing this right. Im currently on London GMT time, would, 5,6,7,8,9 be the times i'll be marking the highs and lows of; and entry would be the begining of 10 and ending would be 17:59?

Thanks

Thanks a lot Edward. I really appreciate you taking time to help us out. I shall try the above methods mentioned by you.

Thanks once again.

Krishna Karthik

Hi Krishna Karthik,

What is better scalping or swing trading? Hm... If you ask me, I vote for swing trading. I like to hold on to my position as long as I can, or rather as long as I can make profits out of it, I trade 3-4 hour charts and higher.
But, if you ask my colleagues, let's take Alex Wakemann, he would deny my long term trading and insist that real profits can be made only and only with scalping approach... (We had those endless conversations long time ago).

There is one thing that would probably determine what method is more suitable for you. It is about time. Scalpers need a lot of it to make good profits, while position traders need usually only from 5-15 minutes to at most 45 minutes to check up on/arrange their trades for the day.

And definitely the system you trade matters.
My favorite systems and setups are:
1-st chart with Forex advanced system #3. The setup doesn't happen too often but when it does profit potentials are very high.
2-nd chart with Forex advanced system #1. Perfect for position trading.
3-rd chart with Forex advanced system #5. When my schedule allows I love trading this intraday system. If you find this one difficult, you can substitute it with Forex advanced system #4, the one posted here above. It has the same good potential of catching early breakouts.

Do I scalp? Yes I do, occasionally. Mostly I work on my own method of ultimate safe scalping. Still developing. It is also a great exercise at a small cost when I feel a need to trade here and now in a fast action mode.

Try out those methods above, they should take very little of your time and make good returns. Happy Forex trading!

Kind regards,
Edward.

Hi Edward

I am new to forex trading. Trading on my demo for the past 3 months and intend to go live pretty soon. I have gone through a lot of systems posted here in this website. This is what I want to ask you. Is scalping or swing trading better? I don't care which system I follow as long as I make money. I have the discipline and patience to stick to the rules. I usually get these 50's here and there scalping but do loose a lot during news and other times. And kindly suggest one or two systems you want me to seriously follow. Waiting for you reply.

Thank you.

I have to mention I am having a great here and learnt a lot.

Krishna Karthik

Yes, 6 - 10 CET is the same as 0 - 4 EST. It is a good time to catch morning trends. That's the one I'd recommend. The second one 10 - 14 CET is less lucrative; in case there were no significant move in the morning, or a trader didn't make any profits during the first half of the day, he/she can try catching an afternoon trend.

Regards,
Edward.

Hi Edward,

I read that some people determine the 6 - 10 CET and 10 - 14 CET for GBP/USD. Is that the same time range that you recommend? If it's not, which one is better?