7am-9am Big Dog USD Breakout Strategy

Hi,

Everyones sharing such a lot on ForexFactory, I thought i will take the time to share with all too what i have learnt that works.

I just got this idea from a friend, who gets this idea from another. (nerd)
We called it the Big Dog 1400-1600 USD Breakout Strategy. (Around US OPEN)

Its a simple strategy. You need not have any indicator, just the default ones found in your metatrader.

Daily Profit Potentials: Around 30-50pips +

All you need to do is the following:-

1. Pull out a M15 Chart for a USD Major pair, example like GBPUSD.
2. Draw a vertical line at 14:00 time on your Chart.
3. Draw a vertical line at 16:00 time on your Chart.
4. Draw a Horizontal line at the high of candles/bars in between the vertical
line.
5. Draw a Horizontal line at the Low of candles/bars in between the vertical
line.

Thats it, Simply put a buy stop at the high and sell stop at the low with stoploss at the low (If your buying) and stoploss at the high (If your selling).

Ideal Targets: Around 30-50pips or no targets if you think it can go more

Trailing Stop of 15pips, if your using metatrader.

Example screen.

You can also check historical records and see its very profitable!!

Some points to note:

1. There are only 9 candles/bars in the 15 minute chart, between 1400-1600.
2. If the Distance between the high and low is less than 50-60 pips, it could be very profitable.
3. If the Distance between the high and low is more than 50-60 pips, it could be not very profitable.
4. If the price doesn't break the high/low, its a ranging market.
5. The USD news are usually released around or after the 14:00-16:00 phase.
6. The signals are only valid for the current day, Next day u again need to wait for the 1400-1600 time and 9 candles again.

*THE TIMEZONE IS BETWEEN 7AM-9AM New york Time*

#Custom Indicator#

(New Version)
New version of breakout indicator (Thanks to andee)

Now you can plot more breakouts on the chart, like London breakout, Asian Breakout, US breakout ect. Just change the magic number in the indicator for each breakout you wish to plot.

input what gmt_shift of your broker
Mulai = start,
Akhir = end,
Jumlah_Hari = number of day you want to display the indicator.

Forex market timez
http://www.2008.worldmarkethours.com/Forex/index.htm

Thats all about this strategy and good luck to everyone.

Hi dz,

Am I plotting this correctly?



Thanks.

Even I can understand this strategy. Well written, well explained, and you use the word "strategy" and not "system". Semantics on my part maybe but we are in a chess game re. forex. Now to test for win/loss profitability.
Many thanks, p.

Here is an indicator that will plot a box for you in the times with highs and lows.

System looks good will give it a try.

Thanks Peacelover, that was fast

I think that this strategy will work very well, and I am going to test it from next week onwards.

Thanks DZ for sharing this strategy

these types of 'strategies' are some of the most profitable due to their simplicity. thanks for sharing I look forward to forward testing it.

cheers

Why not use this strategy for other sessions - London, Toyko, etc?

Attached is a Hans indicator I found posted by Scorpion in another forum. It has adjustable start/stop times and will draw horizontal dots. Change settings for your platform/timezone to correspond with 7am start and 9am stop for this method.

Is the strategy only for GBP US$

What should be the price tobe used for buy limit and sell limit

Which broker's platform do you use for charts?

sorry .. can i ask do we put two pending orders here after the 9th candle is formed?

1 for Buy Stop Order and 1 for the Sell Stop order?

It has featured once in one of the swing trader book that I read....

I do agree with the strategy...but u gota be very careful with ur SL and stuff...

Thx for sharing...

sonic

Hi

Sorry, seriously newbie questions! Can someone explain buy stop and sell stop, and how they apply to this strategy?

Also, does one cancel the other in the above strategy, or do they run side by side?

ADDED: Sorry, forgot to ask. Is this the same strategy that pipboxer uses? It looks very similar.

Thanks

David

A buy stop is an order placed above the current price and will, when price touches, open a long position for you. Vice versa on the sell stop.

Yes, that's correct - you know the high and the low only at the 9th candle. However, if high or the low occurs then, you could more easily get whipsawed out for a loss. Seems like it would be better to enter stop orders "x" # of pips (you decide) above/below the 3rd or 4th candle in order to give the trade more equilibrium - input anyone?

So a buy stop is a buy (long) placed at above the current market price, rather than below (for buys) which has been the norm for my demo trading practice?

Is the intention of the box to find the likely daily support/resistance levels and to enter trades when the price moves out of those?

Sorry for the very newb questions. Still at the early stages of learing here.

Thanks

David

Ok, here's a quick run down on this strategy. Once you know the highs and lows for the 2 hr period. You place a buy stop order above the high and a sell stop order below the low. Might consider adding your spread to the orders.

Example:

Let's say high is 1.4636 and the low is 1.4606. Your buy stop would be placed at 1.4638 ( 2 pip spread added ) and your sell stop would be placed at 1.4604 ( also 2 pip spread added). When price touches either of these 2, you're in the trade. Place a 15 pip trailing stop and set your stop loss at your own comfort zone.

First, daily support and resistance can't be guaged on a 15 min chart. This is a breakout strategy only. I use the previous days' highs and lows to find support and resistance. Yes, a buy stop is a long position order. You must be thinking of buy limits.

You know txtaz...

If it ain't broke don't fix it. This strategy seems to be working rather well, so I see no reason why it should be modified.

Use One Cancels the Other (OCO) if your broker has this option to prevent two orders being filled when there is a whipsaw. Just my opinion.