Forex trading strategy #7 (Simple breakout System)

Edward,

I have a question here. If a breakout doesnt occur for long time, then what should we do? Will the breakout be valid anytime it breaks the channel or only for few hours after London market opens? Thank you for sharing such a wonderful strategy.

Regards,
slngupta

You can always appoint another test for the market before putting your money in it. In case you saw a signaling candle above the channel that appears truly bearish and spreads doubts, be suspicious. Then instead of jumping right in, wait for another 5 min to pass by, or set a Buy order just above the signaling candle right away.

Same rules apply for downside breakouts.

Regards,
Edward

A fast one Ed.,if the breakout candle on the upper limb of the channel is actually Bearish but still falls whole out of the region,do we still go long or better still seek a reconfirmation with the next 5mins candlestick .And does it also prove potent at the lower limb of the channel given the same requirements.Hope am not asking too many questions.Thanks Ed.

Thanks Ed.this is coming real handy,i mean i have been brainstorming on how to combine BO with the news ,and this has really helped,i however will be testing shortly and will let you know of its results.And trust me,the first strategy without the bollinger is quite appropriate,keeping it simple really shows how effective a strategy is..Once more i will keep you Posted.D.B fx

It so much depends on the market. If it is willing to give you good pips it will, if not, even the best strategy is helpless..
Try advanced #3 and 5 first. However, do move on and test lots of other interesting ideas and setups from Simple and Advanced Forex systems, this will help you to find your own approach to trading Forex and hopefully to come up with even greater system!

Regards,
Edward

Hi Edward, you are doing a great job! Thank you so much for sharing these strategies.
I have started trying all the strategies. Personally, I want to ask you one question. Which strategy you have found to be most profitable in this site?

Hi Roger,

Unfortunately I never created any, I don't know if it is possible for this system.

Regards,
Edward

Hi Edward

Is it possible for an EA on this system

Regards

Roger

Hi George,

Yes you got the time right, but I made a mistake in my previous post (which I have already corrected). Therefore, I'd suggest checking up from time to time with Forex Market hours. Choose GMT -8 Pacific time for your area and see the open and close hours for the markets.

Breakout strategies are often tailored to a specific time of the day, but if you find a new approach, that's only beneficial. 1 min scalping can be used during any time of the day or night.

Regards,
Edward

Hi Edward - I am new here and really appreciate your advice. I plan on using # 16 Simple Breakout starting at 10 PM with the first

possible

trade at 11;05 PST. Then I may also use Chelo's Bollinger Bands 1 minute Scalping when the London market opens at 12 midnight to the

closing of the Tokyo session at 1 AM Pacific Standard Time ( PST ) .Are these times correct ?? I get the differrnt time zones confused

sometimes when converting GMT to EST to PST.

Also , can I use either , or both of these two methods during ANY of the daylight hours , PST ? THANKS AGAIN FOR YOUR IDEAS AND

SUGGESTIONS ! I have learned more on this web site than any other . Your patience and generosity are greatly appreciated .

Best Regards ,
George

Hi George,

Hm, I did use 1.5 for BB on Oanda successfully, but now it doesn't seem to work anymore. As you said it converts it back to 2.

Try using this new value, the difference shouldn't be significant. This BB rule was a new addition, originally I used strategy without Bollinger Bands.

Regards,
Edward

Edward -

I have a demo. account with Oanda and use their charts and platform. However when I try to use deviation 1.5 . the Boll. comes up with 2.0 ! Will 2.0 be ok to use or , should I just pass on Boll. Bands and use the original rules ?

Thanks for your help !

George

Yes, if PST is EST - 3 then it should be 10pm to 11 pm PST.
There are usually no news during the time we set our orders. First news come at 4:00am - 4:30am EST for GBP; for JPY and EUR we may see news as early as 2:00am EST, but those usually aren't that important.

As we speak about the news, there is actually one more thing you can do before deciding on a particular trade. In economic calendar note news schedules for the currencies you trade. Analyze Previous and Forecast numbers to get preliminary direction bias. If a breakout happen in the direction you had expected, this would add additional confidence to trading that breakout.

Regards,
Edward

Edward - Still confused about effect of News which could cause price to go either way. I am in California so my trade zone is 10 PM to 11 PM PST. There snould not be any big news items during that period , Right ???

George

Hi Edward,

I find this to be a very profitable strategy. 20 pips profit is almost always met. I've tried 9 times and only 1 time the trade went in opposite direction. Thanks for the tip!

Fitri.