Another great Breakout GBP/JPY System (Dachel's Simple system)

Hello everybody.

Im posting my new strategy here, this is my first post in this site and I wish you happy pips with it.

I used (IBFX) to perform the back test.

Here's the deal.

1. Open the 4 hour chart
2. Take the Hi and Lo of the second candle of the day (GMT)
3. Place an Buy order 10 pips above the Hi and 10 pips below the Lo
(you can use the Eagle Breakout Indicator for easy visualization)
4. When the price hit an order cancel the other.
5. You should place your SL at the other side of the channel.
(don't enter the trade if the channel is more than 200 pips)
6. You should place the TP at the size of the channel.
7. Close the trade at the end of the week if given the case.
8. If your trade is still on by the next breakout stay in until you lose or win.

This baby gave me in my manual backtest in 2007 around 4658 pips. This sitem can be improved if someone want to try a diferent strategy or maybe a Breakeven or SL. Anyway I guess is a very profitable system. Try it on a demo or backtest to check by yourself. Any sugestion is welcome as weel as for backtest for other currencies and other years.

Well I guess that's all for now, I leave you my monthly results.

2006
Jan: -447
Feb: +458
Mar: +63
Apr: +231
May: -153
Jun: -106
Jul: +383
Aug: +622
Sep: +60
Oct: +194
Nov: -7
Dic: +302
TOTAL: 1598 Pips

2007
Jan: +278
Feb: +333
Mar: +1107
Apr: +366
May: +343
Jun: +726
Jul: -412
Aug: +349
Sep: +428
Oct: +776
Nov: +280
Dic: +114
TOTAL: 4658 Pips

2008
Jan: -278
Feb: +113
Mar: +434
Apr: +432
May: -240
Jun: still on
Jul:
Aug:
Sep:
Oct:
Nov:
Dic:

Looks good.
Do you mean the 0400 4H candle?

Thanks

Also, if you're still in a trade the next day, do you open another one?
Thanks

Yes, open another one and keep the other runing.

Im not shure at all but I strongly recommend to stay with the 4h chart. So the second candle of the day will work. Anyways if you use the indicator will be easier.

I don't need an indicator to find the 0400 4H candle, if that's the one it is.

Yes is the 0400 candle

are we enter our's trade at 0800 candle? after we get the H and L for 0400 candle?


lee

Yes, we wait to the 4h candle to close and then enter a trade in the direction of the breakout.

I will soon upload an image to show the set up so you can visualize better.

Thanks

lee

seems like a nice bar to look for the daily trend, just through backtest observation seems very nice, also looking for a one trade reversal on the day system as well as long as it stops and reverses before the 12H or 16H candle closes. same risk as initial, but look for 1.5 times the candle length, that way you still make some profit. also looks very achievable at most risk of 3% per trade, looks to be consistent monthly with the exception of about 2-3 slow days, which would be losses, some breakeven days thrown in, and the rest winners. looks like a nice method, will be forward testing it, multiple pairs would work as well i am guessing, even better for the ones that dont have the JPY as a currency in the cross!

great eye!

Greetings Bill,

You and I are both on Central Daylight Time. If I read the IBFX 0400 candle on a 4 hour chart, that candle spans from 11PM CDT until 3AM CDT?

If I am incorrect, you may demote me to the beginner's circle! LOL

Hey Dachel! Thanks for your version of the GBP/JPY Straddle Breakout. There are many versions out there on the web, but yours is a fresh approach...will try!

Bob

Yep. That's correct- 11PM to 3AM.

You stay at the head of the class

I wonder why this system was moved?
I'm not sure its viable, but , at least, its a complete system.

I'll Be Posting the daily results here so you can track this system since posted.

Today's trade

Range: 58 pips
Long: 212.60
Stop: 212.02-spread (usually 9)= 211.93
Limit: 213.18+spread (usually 9)= 213.27
------------------------------------ ------
Result: +58 pips
Total of pips since start: +58

Today's trade

Range: 79 pips
Long: 213.64
Stop: 212.85-spread (usually 9)=212.76
Limit: 214.43+spread (usually 9)= 214.52
------------------------------------ ------
Result: -88 pips
Total of pips since start: -30

Hello, dachelm!

I had a loss too, but I have doubled the position when it moved short and I had a profit!

Cheers!

That's good to hear, I though the same at the begining but then I realize through my backtesting that the double method end in losses so be carefull.

Anyways congratulation for your achieve today.

Cheers LOL

So, you do not recommend to enter a position if it moves in the opposite direction? Or only not to double it?

Research "martingale theory"