Simple PSAR/Fractal Break Out Strategy

This is a system that works very well except with these few exceptions....

1. I would refrain from using it on Daily charts
2. On pairs with a high spread, I would not go any lower than M30 charts
3. The best time to trade this on lower TF's is during breakout times...i.e, London or N.Y opens.

Personally I have done a complete 180 degree turn from before. I think I was a lazy trader who wanted to trade the Daily charts because of my day job, but this has been hard to do and the returns have not been the greatest because such a large s/l is needed and so your profits are minimal.

I will be endevoring on a 6 month blitz using this system and eurusd (M5), gbpjpy (M30) and gbpchf (M30). I will be going to bed shortly after coming home from work and waking up about 4:45 GMT and trading until I reach my pips or until I have to go to work. I will try to be on this thread during that time frame to help others as I can, but my main priority is not needing my job in 6 months....wish me luck

System Requirements:

1. PSAR set to .01, .2
2. Fractals (under Bill Williams section)

System Rules:

1. The basic jist of the system is to take Fractal Breakouts using the PSAR as your directional. Another words, don't take a long Fractal Breakout if the PSAR dots are indicating short and vice versa.
2. One thing is you don't need to wait for a Fractal to form after the change of the PSAR. You should go to the very latest fractal that would already fall above, below the PSAR dots and use that as your entry. This point may change to a different Fractal as the PASR moves on the next bar. Then you can add additional positions on the next Fractal the forms after the PSAR cross over.
3. s/l and t/p are up to the user, but on erousd M5, no more than a 20 pip s/l and gbpjpy (m30) and gbpchf (m30) no more than a 50 pip s/l should be adequate. Take profit when you reached your target. Also, you may use the most recent High Fractal in a Short Trade and the most recent Low Fractal in a Long Trade as your s/l points.

Well, this is all there is to it. I think that you will find this ver simplistic in nature and very condusive to any pair on any tf except the dailies and up.

Happy trading and I will try to be around when trading to help out those I can.....

Good luck damonl, I hope you can quit your job soon.

I'll follow your thread, maybe I can quit mine too .

Strategy sound very logic. How many pips are you trying to get daily ?

Regards

I am not looking for a lot of pips, but it is very common for eurusd, gbpjpy and gbpchf to start there daily trends at the london or new york times.

I am shooting for 2-5% daily with a 2% risk per trade. 20 pips on eur/usd and 50 pips on the other pairs if the market is mildly trending, a lot more if the trend really blows out of the water which it does quite regularly.

One thing is that it is easy to re-enter, and so once up a few pips, i will probably not let them go to red. This will only happen when ranging. When breaking out, going back into negative is highly unlikely until a decent profit is taken.

Use good common sense when trading this. There is no set rules for exiting, only for getting out of losing trades and entering. Just take green pips

Posted to the wrong system, sorry.

Can you post the fractals indicator please ( I assume it is not the standart MT4 one) Thanks.

Hey orientos...it is the standard MT4 indicator.

I will keep this up to date as best I can, but when things start to move i will make no promises....

all trades will be at a 2% risk

4:35 GMT

eurusd: currently i will buy at 1.5622 + spread and have my s/l at 1.5614

gbpjpy: currently i will buy at 212.22 + spread with a s/l at 211.66

gbpchf: currently i will buy at 2.3477 + spread with a s.l at 2.0420

gbpchf: currently i will sell at 2.0358 with at s/l at 2.03477 + spread

4:50 GMT Update

eurusd: currently i will buy at 1.5619 + spread and have a s/l at 1.5614

eurusd: currently i will sell at 1.5597 with a s/l at 1.5619 + spread

5:10 GMT Update

eurusd: curretnly i will buy at 1.5619 + spread with a s/l at 1.5602

5:20 GMT Update

eurusd: currently i will buy 1.5617 + spread with a s/l at 1.5602

5:30 Update

eurusd: short trade triggered

eurusd: currently i will buy at 1.5622 + spread with a s/l at 1.5602

gbpjpy: currently i will buy at 212.04 + spread with a s/l at 211.66

6:00 GMT Update

eruusd: short still open

eurusd: currently will go long at 1.5619 + spread with s/l at 1.5595

6:10 GMT Update

eurusd: short still open, have locked in 5 pips

eurusd: currently will go long at 1.5617 + spread with a s/l at 1.5595

6:50 GMT Update

eurusd: short closed with a 5 pip profit

eurusd: currently i will go short order at 1.5578 with a s/l at 1.5596 + spread

gbpjpy: short triggered at 211.66 with a s/l at 212.04 + spread

7:00 GMT Update

eurusd: short trade triggered and am locking in some pips

Hi damonl,

just curious how much is your live account deposit and which broker?
seems you open few trades with 2% each trade, it must be enough margin.

last 6 months, i have the same goal to try quit my current job, but not yet find a really good consistent system. So, still looking for good system...

wish u best luck..

I use IBFX for a broker. At most I will have only 3 trades open, so margin is never a problem. Any updates I posted above will cancel any previous orders.

Wishing you luck man! I like your goal its mine too.
Only one comment arent you concerned with your buying GY right in front of DP at 212.27, Just a thought.

I have to get away now and trade: I think that you can all follow along now as to how I reset the orders based on the fractals and the PSAR...good luck

I might be, but I am thinking that this trade would be moved before it will trigger, but it is definitely something to watch for

news for the euro will be in about 23 minutes.

I will leave my current short open with a s/l at the psar dot where i will also open up a long order and i will also place a 2nd short order below the low fractal incase the move is that way....wish me luck

that was a nice move for the news. With all that has happened, I have made my target today of 2-5%...5% to be exact.

Will trading anymore be over trading? That is the question i am asking myself right now. I think I will just stick around and take small profits from here on out.

Could you post a chart or two when you get a chance? I've not used fractals before and I don't really understand your entry instructions.

Thanks,
Scott

Hi damonl,

thanks for the sharing. could u post ur template.....and show us the entry point. i could catch ur mail....

I will try tonight if i am able

no template needed...I only use two indicators, the trend indicator PSAR and Bill Williams fractals.

How did trading go today?

I just started......i work during new york open, and so am now back at it for London.

Currently i have long trades open on eurusd, gbpjpy and gbpusd (i have substitued this for gbpchf)

however....new york would have gotten me some more nice pips