Daily Breakout Any Pair

Have been snooping around these and other forums for some time now. Have only been demo trading for bout 5 months or so. Just trying to gain knowledge and experience so that when I go live I dont end up blowing my account as I have been hearing is so easy to do.

So dont take this strategy as a proven profitable system. I just posted it here to see what ppls opinions of it are and how it could be improoved or even if its any good.

Pull up a 15m Time frame any pair.
On the previous day put a horizontal line on the highest Open of the day, and another line on the lowest close of the day. Ignore the shadows on the candles.
So now you have 2 horizontal lines.
On the next day you place a buy and a sell at these lines and wait for one to be triggered. Set your take profit and recomend setting a stop loss a good distance.

From what I can see if you have a small take profit say 10- 15 pips inc. spread you will nearly always win. on this 10 -15 take profit id probly put a 20 pip stop loss.
Using pivot points also can help to determine stop loss and take profit points.

Also I have noticed that if price has already made a large move say greater than its average daily range and is yet to trigger an order it is best to cancel pending orders. Also probly best done with a high volatility.

Any suggestions/comments welcome.

Here was last week for Fridays trade from GBP/USD and with a small take profit of 20 pips. But as you can see if you want more pips that is possible too, but you will have more loosing trades.

If you plot pivot points the price actually rebounded off the pivot point to make a large up move after taking profit of 20 pips.

A sell trade.
The 20 pips profit was realised within the same 15min candle, although I have used the 1hour chart to show these examples, just to get everything in.
This example shows that you could use a trailing stop to make roughly 100 pips profit.

Spend a bit of time in this thread:
http://www.forexfactory.com/showthread.php?t=9471

Lol so somone else showed it before me!
and I fort I had come up with a strategy, dam. I still think its a winner though. He suggested looking at daily though, i am saying 15m.
It is true though about the previous bar not being the same todays bar. Theres somthing there....

edit*
Ok actually someone else there suggested 15min tf. lol somone at the end says that its a good thing this strat has faded away lol, and here i am re-posting it.
Ill just keep this one to myself then.

Hello, fry2010.

You might want to have a look here also http://www.forexfactory.com/showthread.php?t=30109

hey plamen, thanks for that. Very similair strategy, although im a little confused as to the use of fibonachi here. but stochastics look like a good addition.

Todays trade for GBP/USD if anyone is interested.
Take profit of 20 pips hit

I am interested in pursuing this with you. It sounds like it may be a good idea.

Why no Short Pending order tonight?

I love this to man I am a newby and lokking for a system that is easy to learn
Réal

Fry,

This is indeed similar to a couple other systems here on FF, but it is slightly different. So plow ahead and let's see what becomes of it. I like these breakout type systems.

Any particular reason for the 15-minute TF, by the way? Did you test others? Just curious is all.

Also, what time of day do you analyze the highs/lows of the prior 24 hours and place your orders?

And I for one think a trailing stop might be a great addition to the system. That would allow you to benefit from the occasional huge swing, which would make up for some of the days that have losses. I would love to be able to AVERAGE +20 pips per day.

Looking forward to hearing more about this...

Scott

Hi guys. Thanks for the vote of confidence. Yeah today would have been a great trade for long. With a trailing stop even better, but i remind you that im not actually trading this strategy it was somthing I noticed when looking at the charts. Some pairs are better than others, but all will give good trades, some just more loosers depending on take profit.
Damon im not sure about the pending short you suggested yesterday? On my chart price didnt reach the short for then or today?
Real, yeah this is a very simple strategy, and easy on the eyes.
Henry, I have used the 15m timeframe to get in early as I was only looking to take small pips, with smaller drawdown. I suppose you could use other timeframes too.
With regards to when I would plot the pending orders would be once the day has ended ready for the next day. I thinking that also it would be better to trade when there is high volatility, i.e. when london and us markets open. Better momentem would mean more chance of reaching take profit.
Maybe with the trailing stop once the take profit level is reached move stop loss to break even, and trail by a set number of pips. I think though once you start doing this your likley to get stopped out when there is little movement, on the other hand you do get the larger pips.
Its a tricky one, if I had time what I wud do (and might do) is work out the percentage of times price reaches take profit, and work out how often it goes past the take profit by a good distance. Maybe working out the average pip movement on each breakout would show whether a trailing stop is better than a set take profit. Would also need to consider the loosing trades/break even trades against this.
God if only I had a program that just instantly calculates these kind of things for me wud make life easier. I have loadsa calculations I want to do but havnt the time/patience or brain capacity!

Another successfull trade today. GBP/USD has just reached 20pip take profit on my brokers data.
I think this wud work best using a few pairs if you want more pips, rather than use a trailing stop. The idea to get in and out of market as quick as possible and take the profit.
If you have 5 pairs taking 20 pips each day looking at around 500 pips per week max. Some days though there is no trade so I doubt that you will get the full amount.
Might be worth looking into other pairs to see what a good take profit might be.

Once again take profit hit today of 20 pips on GBP/USD.
I believe that it will still be successful even in a ranging market, looking at previous days.
So far over past 4 days if trades had been made, 4 winners, 0 loosers. total pips = 80

You can make a good living on 20 pips per day. Keep plowing ahead!

Thanks cmartin.
Unfortunatly today was a looser.
On my brokers data price went 18 pips above breakout level.
I will continue to obvserve the trades daily and report back. I find this easier atm due to work commitments bla bla.
Should give a better understanding of using this strategy.

Fry, if you get time, you might post an occasional summary of your results (perhaps weekly?).

Thanks,
Scott

Hello SRDCs

I am first time on this thread and read from first to last post...I couldn't find SRDC indicator for manual use....only for EA. Can someone post all those SDRC. In Fact I tried to place SRDC.mq4 but shows nothing on chart!? Am I doing something wrong? Or should I create those lines manualy as per manual SRDC 1.pdf?

Have a good pips

mima

Hi mima. Im not sure what indicator that is. and i dont know of any pdf? r u on the right thread?
I just draw horizontal lines on the prevoius day high and low close/open points, not the shadows. Nice and simple, easy to just place your set buys and sells the night before with set take profit and stop loss.
Last week 4 wins against 1 loss, so looking good so far. still need to decide on stop loss and many other things. I think a trade is only worth taking if there is a high volatility, but then it makes setting buys and sells useless. Currently in a buy, waiting for market to open, see what happens - low volatility expected.
Dont forget this is only one pair so although there might be only small wins, they can amount to a lot if using other pairs.