Forex trading strategy #7 (Simple breakout System)

Hi Edward,
I've noticed that when the whole candle closed on the 5 min chart let's say suggesting an uptrend but the candle is bearish It gives a fake signal and the trend goes back down. Can I use this as another rule for this system? Or should we go long besides that?

Thank you, Soremto

among other strategies, I'd recommend reviewing advanced #5 & #10.
However, we have so many ideas and methods here, that it would be worth reviewing the rest of the strategies as well.
As an example, we've got a trader who had successfully combined few of the strategies into one simple and effective method:
http://forums.forex-strategies-revealed.com/combination-strategies-t140....

Best regards,
Edward

Hi Ed,
What a fabulous strategy. [have traded it live and it is a pip maker.Pls Ed could you recommend other strategies/systems that have high accuracy like this one. Meanwhile I doff my hat for a great work.
Soremto.

Thank you for your feedback!
I'm glad you've learned a lot with us.

Behind the strategy is a concept of approaching any breakout with virtually any trading sessions. All you have to do is to figure out which hours are the most significant in the preparation for a breakout for each trading session.

Regards,
Edward

hello ED! i have been learning forex trading for some time now, and this site has been one of the great resource website that has boost my knowledge about forex. thank you so much for your effort to making this site a reality.it has been a big help to me. i just wanted to know if this strategy could work for other market opening sessions, like New York, Tokyo and Sydney opening sessions?

It means that the channel is 45 pips wide.

Please see the screenshot below.

Regards,
Edward

what does it mean by (channelwidth of 45 ) ?

Hi Paul,

Both London and NY switch to day light saving time, so the hours shift simultaneously.
No adjustments on traders' side needed.

Regards,
Edward

Hi Edward,

Great credit to you for this system and your continued support of this discussion thread. I am slightly confused though, your very first post says that the London market opens at 3:00 EST (8:00 GMT). But during the British summer months London opens at 7:00 GMT, which is 8:00 British Summer Time (BST). If I understand the rationale for this system it is based on the London open time (8:00) and that should be the focus, rather than a GMT time which will vary during the year as the U.K. moves in and out of its British Summer Time. Does that make sense? Many thanks again. Paul.

The results were good and the system is profitable.
What else can I add? The concept of the system can be used for any breakout strategy, which gives you a freedom of making whatever rules you may need.
I don't have specific stats for this system, since I trade a set of systems at once.

Regards,
Edward

hello can i ask Edward Revy how was the result by using this system is't profitable?

Hi IrSJWoo,

Thank you for your feedback and a good alternative strategy summary!
I'm sure it does a great job if one sticks to the rules.
Thank you!

Best regards,
Edward

First of all I would like to mention what a great site this is, it's realy a valuable resource for everybody who's interested in trading forex beginner or advanced. I've been forward testing this simple breakout system for some time now and the results are quite good. I've tweaked the original system a bit, first of all I enter a trade when the close of a candle closes outside the channel and not the whole candle, when there's a strong breakout waiting for a whole candle to close outside the channel is not the most efficient entry. Secondly I look at another variable before entering a trade, the width of the channel, in most cases when there's a wide channel the currency pair mostly retraces after your entry and in most cases your stoploss is triggered. Now the question raises how wide is a wide channel ? Well this is the same question as "when is a currency pair overbought" is this 80 or 75 or even 70 ? Usualy you pick a number, for instance 80, and stick to this number. During backtesting and forward testing a channelwidth of 45 seems to give the most return. You could build a variable channelwidth in your tradingsystem and backtest this yourself to see what channelwidt gives the most return.

Greetings and happy trading,

IrSJWoo, the Netherlands,

I don't know, Alex. May be they do, I haven't paid attention before.

Regards,
Edward

Hi Edward and all, it seems a lot of times the breakout happens before 2AM EST despite daylight savings. Do most big traders disregard DST?

Alex Liu