Before I start this thread, I would just like to remind you of something very important
There is no holy grail.
If you are looking for a system that will allow you to trade 15 minutes a day from the beach while sipping a mocha and compile massive returns - then this is not for you.
With that being said, welcome to the Previous Day Breakout Edge System.
The Initial Setup
1. Load up a chart with the currency you are looking to trade
2. If using TradingView, add the following indicators:
2a. Use the Cyclic Lines to separate the days - for me in particular the trading day starts at 10 PM (GMT)
2b. Search for a previous day high and low indicator (lots of different ones available on the platform)
2c. Simple Moving Average (SMA) for filtering with a setting of 34 - optional
3. You are now ready!
The Strategy
1. You are looking for a break and close above the previous day high for a Long position or a break and close below the previous day low for a Short position.
1a. If using the SMA for filtering, you are looking for price to be above for Longs if price breaks and closes above the previous day high, and vice versa of course.
2. Once a breakout has been established you will want to add a position at the open of the next 1H candle.
3. Stop loss should be 12.5 pips and Take Profit should be 25 pips giving you a positive R:R ratio of 2.
4. Rinse and repeat as long as there is an opportunity, if you are feeling positive you can also scale into positions depending on how aggressive you are.
Now.. you might have some questions in regards to its validity or how frequently you win.
Before you do so, please take a moment to analyze where the edge is, the clue is written in the paragraphs above, a trader that understands statistics and probability will relate to this strategy, regardless of how simple it might sound.
Note: I have attached a EUR/USD chart on a 1H timeframe in order to give the viewer a visual representation of the strategy, in this example we had 2 wins and 1 loss.
There is no holy grail.
If you are looking for a system that will allow you to trade 15 minutes a day from the beach while sipping a mocha and compile massive returns - then this is not for you.
With that being said, welcome to the Previous Day Breakout Edge System.
The Initial Setup
1. Load up a chart with the currency you are looking to trade
2. If using TradingView, add the following indicators:
2a. Use the Cyclic Lines to separate the days - for me in particular the trading day starts at 10 PM (GMT)
2b. Search for a previous day high and low indicator (lots of different ones available on the platform)
2c. Simple Moving Average (SMA) for filtering with a setting of 34 - optional
3. You are now ready!
The Strategy
1. You are looking for a break and close above the previous day high for a Long position or a break and close below the previous day low for a Short position.
1a. If using the SMA for filtering, you are looking for price to be above for Longs if price breaks and closes above the previous day high, and vice versa of course.
2. Once a breakout has been established you will want to add a position at the open of the next 1H candle.
3. Stop loss should be 12.5 pips and Take Profit should be 25 pips giving you a positive R:R ratio of 2.
4. Rinse and repeat as long as there is an opportunity, if you are feeling positive you can also scale into positions depending on how aggressive you are.
Now.. you might have some questions in regards to its validity or how frequently you win.
Before you do so, please take a moment to analyze where the edge is, the clue is written in the paragraphs above, a trader that understands statistics and probability will relate to this strategy, regardless of how simple it might sound.
Note: I have attached a EUR/USD chart on a 1H timeframe in order to give the viewer a visual representation of the strategy, in this example we had 2 wins and 1 loss.
