This strategy is basically a Spin Off of mer071898's Simple London Breakout strategy.
This strategy uses the same indicator that squalo has been working on and improving everyday. It will also use the same EA as soon as squalo gets the Martingale set up and working properly.
I have made a few small modifications to squalo's indicator and to mer071898's settings. The indicator with modifications and setting is below.
The Strategy
The strategy is to trade the range set in a currency pair between the hours on 3 and 6 am GMT. We will buy any breaks to the upside of the range and sell and breaks to the downside of the range. If we have a breakout to the upside and hit the profit target we will buy any pull back to the top of the range. (Support) We will do the same if it breaks out the bottom of the range. If we have the breakdown and hit the profit target and then get the retrace back to the bottom of the range we will sell again. (Resistance)
The Profit Target is 100% of the Box size drawn around the highs and lows between the 3 and 6 am hours.
Rules
1. If we hit the target on the first trade we are done for the day with this strategy.
2. If we do not hit the target we will use the Martingale system up to 4 times. 1 lot - 2 lots - 4 lots - 8 lots.... Unfortunately if we do not win after the 4th time we wiped out 15 positive trades. Looking back I have not seen this happen other then what I showed in the bottom chart. The good thing about the bottom chart is the first trade was a winner and we would not have traded all those lots.
The chart below shows a good range day during the London/US trading session. It was good for 64 pips and there was actually another trade that could have been taken for another 31 pips and a total for the day of 95 pips. If you install the indicator and look back you will see this is a typical range day and you can get a few good trades in unless we have a break out day.
http://4.bp.blogspot.com/_C0VzKMtMF_...geexample1.png
This chart however is not so pretty and shows a worse case scenario. I went back about a year and found this day that look like the worst day for this strategy. I did not see a lot of them so I believe it is the worst case.
Using Martingale we were up to 128 lots before we made a profit. and the draw down for this day was 3528 pips. For a micro that is $352.80, mini $3,528.00. Ouch... This strategy works but you have to have the stomach or nerve to keep doubling up until you are profitable.
http://2.bp.blogspot.com/_C0VzKMtMF_...geexample2.png
I do have a nice Money Management system that will make a nice return without using martingale for those that do not like to trade it. I will post the excel spreadsheet later.
I think that covers it for now. I will post updated charts on the EURUSD daily and possibly other pairs if time allows.
Enjoy.
RJ
This strategy uses the same indicator that squalo has been working on and improving everyday. It will also use the same EA as soon as squalo gets the Martingale set up and working properly.
I have made a few small modifications to squalo's indicator and to mer071898's settings. The indicator with modifications and setting is below.
The Strategy
The strategy is to trade the range set in a currency pair between the hours on 3 and 6 am GMT. We will buy any breaks to the upside of the range and sell and breaks to the downside of the range. If we have a breakout to the upside and hit the profit target we will buy any pull back to the top of the range. (Support) We will do the same if it breaks out the bottom of the range. If we have the breakdown and hit the profit target and then get the retrace back to the bottom of the range we will sell again. (Resistance)
The Profit Target is 100% of the Box size drawn around the highs and lows between the 3 and 6 am hours.
Rules
1. If we hit the target on the first trade we are done for the day with this strategy.
2. If we do not hit the target we will use the Martingale system up to 4 times. 1 lot - 2 lots - 4 lots - 8 lots.... Unfortunately if we do not win after the 4th time we wiped out 15 positive trades. Looking back I have not seen this happen other then what I showed in the bottom chart. The good thing about the bottom chart is the first trade was a winner and we would not have traded all those lots.
The chart below shows a good range day during the London/US trading session. It was good for 64 pips and there was actually another trade that could have been taken for another 31 pips and a total for the day of 95 pips. If you install the indicator and look back you will see this is a typical range day and you can get a few good trades in unless we have a break out day.
http://4.bp.blogspot.com/_C0VzKMtMF_...geexample1.png
This chart however is not so pretty and shows a worse case scenario. I went back about a year and found this day that look like the worst day for this strategy. I did not see a lot of them so I believe it is the worst case.
Using Martingale we were up to 128 lots before we made a profit. and the draw down for this day was 3528 pips. For a micro that is $352.80, mini $3,528.00. Ouch... This strategy works but you have to have the stomach or nerve to keep doubling up until you are profitable.
http://2.bp.blogspot.com/_C0VzKMtMF_...geexample2.png
I do have a nice Money Management system that will make a nice return without using martingale for those that do not like to trade it. I will post the excel spreadsheet later.
I think that covers it for now. I will post updated charts on the EURUSD daily and possibly other pairs if time allows.
Enjoy.
RJ
Attached File(s)
Bobs BreakOut 2.mq4
17 KB
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390 downloads