Simple morning hours breakout system - forward test $1000 => ?

Hey there and a good new year 2016!

In this thread I want to introduce and forward test a dead simple breakout approach where I take the 30min candle from 9:00-9:30 (CET => GMT+1) and place stop buy and stop sell orders above and below. That's it. Traded pairs are EUR/USD and GBP/JPY...

Alright, here are the rules in a more readable form:

 

1. Traded pairs: EUR/USD and GBP/JPY.
2. Take the 30m candle from 9:00-9:30 (CET => GMT+1) and place two stop buy orders above that candle and two stop sell orders below (0.5% risk each).
3. SL is 90% of the size of the candle for all orders.
4. TP for one of the orders is 100% of the size of the candle, no TP for the other one (let it run).
5. Order duration is 1 day.
6. Once the buy or sell order is filled, place one additional buy order 1/2 below the entry. SL and TP have the same settings. Reason for this is to increase the position in case of an initial retracement.
7. If one target is reached, clear the opposite order.

The idea behind this is to use the usual volatility in the first hours of the european trading session.

I will see that I show some example trades later on. Initial risk will be 1.5% per trade.

Cheers!

Sounds good , waiting for examples

it's simple and will work sometimes.. Examples would be good, I back tested it right now. When the candle is too small, there won't be a good trade, when the wicks are too big or bigger than the candle, there is no good trade. Do you set the orders at both ends of the candle or at the ends of the wicks?

Mon

Subscribed

Hi Xaron ! Nice to meet you here again.

Your approach in post #1 sounds very mechanically. So could you perhaps write an EA ? I think it's not so intricately to create such an instrument ?

This is just another London Breakout strategy, nothing new, it's all been done before.

Do you look for new stuff or stuff that works? Why does it have to be new? I could add some funny indicators (which are completely useless btw because they do NOT add any new information).

An EA is very possible and shouldn't be that hard to do. I'm just too lazy atm, might do it later. This is for sure not even close to a holy grail but it's simple and might work in the long run. I actually don't know.

some examples would be good, your trade history of the explorer isn't really helpfull...

I will post some... Tomorrow.

Good to hear, see you tomorrow!

will it work on another pair?

@Xaron
In fact - that would be quite enough !

Btw - a good start you have made in the test account above, documented by the trade report !

Missed your examples too. Btw: I back tested EUR/USD today and it doesn't look good.... It's more a 50/50

Right, a live example:

EUR/USD orders are set, let's see how this plays out:

After a while the sell stop order got filled. One has a TP, the other not, both have SLs. Added a sell limit order in the middle to catch a possible retracement.

First target almost hit...


...and hit. So now we remove all pending orders and trail the stop for the remaining open position. For trailing I use just the high of the last two finished candles.

Next candle started. Trailing the stop above the highest high of the last two candles...

Trailing...

Hi mate ! So plz, you are a nice guy - I know it - code that EA for this KISS strategy .... come on !