Scalping system #2 (Morning breakouts)

The most predictable and significant move is still the morning one - somewhere till 11:00 EST I like to be in a trade. Other specific times - it depends solely on a currency. For example, GBP/JPY that you've mentioned, can also be watched starting from 14:00 EST. In the afternoon this currency pair quite often picks up a trending mood and trends well for several hours.

Happy trading!
Edward.

Are there any other specific times during the day when the FOREX market moves significantly (esp. GBP.JPY)? This and the economic indicator strategy are great!

Thank You,
Eugene

Back-testing isn't usually the best option. I would suggest demo trading. I also haven't heard of anyone making such profits in 2 weeks either.
Actually, since mid July this year we had huge corrective waves with enormous price volatility for most of the currency pairs. This created a lot of additional opportunities for profiting.
Therefore, don't take specifically this month as a control/regular month. Try demo trading using the same rules for several more months.

Regards,
Edward.

I did some back-testing using this strategy from 8/9/07 to 8/24/07. . . . Based on my testing I would have turned $10,000 into $288,000 in ~2 weeks. Is this really possible?

Stop loss of 20 pips is reasonable. Use 20 as a guidance, and in addition try to look for different kinds of simple but very effective chart patterns such as double and triple bottoms and tops, flags, pennants, crowns, rising and falling wedges, you name it I use it, draw trend lines, price congestion tunnels. All this is done in 1-2 additional minutes and you have your stop placed at a very logical point, sometimes tighter, sometimes slightly loosened.

Happy trading!
Edward.

Right :)

Yes, that's the way it works.
Edward.

Edward,
This is great work

so all what i do to place 2 orders buy $ sell stop based on High & low 7:00 am EST candle.

thank you

Ideally, we want to see the opposite order as a stop-and-go. If a stop appears to be too far, then it is up to a trader to set the limits... There are many parameters involved, such as currency volatility, personal risk limits and so on that makes it difficult to suggest a certain stop value.

For my trading I use:
For scalping maximum risk is 10 pips.
For traders with higher profit targets can be 15-20 pips.

Happy Forex trading!
Edward.

Edward,
This is great work!

What should be the Stop Loss?

Am going to try this out to see if it works well. Thanks for the awesome job.

Maaruf

Yes, one should use 1 hour chart to identify the high and low of the last candle;
and 5 pips profit usually comes very soon after the New York market open.
Edward.

So is that the time frame for the chart i.e. to identify the last candles HL using a 1 hour chart?

and I guess the idea is to profit on 4-5 pips within a short period of time after market opens.

The time frame should be 1 hour.
So, by 8:01 am EST the two orders must be already in place based on 7:00 am EST candle.

"Only to place 2 orders: above and below the last candle’s high and low at 8:00 am EST and join morning stretching having your 5 pips safely."

What is the appropriate time frame for this, then?