Daily Inside Bar Breakout | Forex Factory

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Daily Inside Bar Breakout

  • #1
  • First Post: Jun 25, 2008 1:49pm Jun 25, 2008 1:49pm
The rules are very simple and for people like me who can not stay in the front on the computer.
Any previos day inside bar you see on major pair, place a buy stop order with 5 pips above the the high (previos day) and sell stop with 5 pips under low (previos day).
I take data from IBFX charts and i will take the new day at 5:00pm est.
Open 2 lots, once you get up 30 pips, close one lot profit and move break even the second lot. let it run and take profit at the same amount of previous day pips.
Place stops at the end of low or high previous day candel, depend of wich direction breakout is.
Any suggestion welcome and if someone is running this strategy already , i appologize, the ideea come from all the guys who open the tread http://www.forexfactory.com/showthread.php?t=86766
and i have all the respect for them.
Anyone who like to help in any way, much appreciate.
Any suggestion for Money Managament, please post here.
I also am subscribe to a news calendar weekly( please dont ask me wich one, i will not tell) and that can help me to decide wich direction and how powerfull will be that break.
God speed to all.
ps.
Today breakout IB on eur/usd was at 1.5625, up +52 pips
take 30 pips, move second lot to break even, target 1.5750
  • #2
  • Jun 25, 2008 4:21pm Jun 25, 2008 4:21pm
Hi. Thanks for sharing. Will take a look.

Can you clarify what you mean for the second lot when you say, "take profit at the same amount of previous day pips."?

Thanks,
Scott
Prices are never too high to begin buying or too low to begin selling.
  • #3
  • Jun 25, 2008 4:48pm Jun 25, 2008 4:48pm
Quoting thehenryfam
Hi. Thanks for sharing. Will take a look.

Can you clarify what you mean for the second lot when you say, "take profit at the same amount of previous day pips."?

Thanks,
Scott
When you open 2 orders , one close for 30 pips profit, move the second order to BE and let it run till reach the same amount of pips what the IB previos day has.
What I do, at the end of the day, i like to close the second order ( lot) too, even if I didnt reach the target, I dont like to leave pips on the table as much as possible.
Now, this type of trades are rare, but it works for me, will keep it posted when they occure.
Again thanks and credit to james16 and other grup of traders who i learn from.
Please post any suggestion or mistake i made.
  • #4
  • Jun 25, 2008 4:53pm Jun 25, 2008 4:53pm
Im working in this apporach also (demo).

My approach is to close the positions on Friday.

But I ll try another trailing method like 20-SMA.

Good luck

Quoting poliforex
The rules are very simple and for people like me who can not stay in the front on the computer.
Any previos day inside bar you see on major pair, place a buy stop order with 5 pips above the the high (previos day) and sell stop with 5 pips under low (previos day).
I take data from IBFX charts and i will take the new day at 5:00pm est.
Open 2 lots, once you get up 30 pips, close one lot profit and move break even the second lot. let it run and take profit at the same amount of previous day pips.
Place stops at the end of low or high previous day candel, depend of wich direction breakout is.
Any suggestion welcome and if someone is running this strategy already , i appologize, the ideea come from all the guys who open the tread http://www.forexfactory.com/showthread.php?t=86766
and i have all the respect for them.
Anyone who like to help in any way, much appreciate.
Any suggestion for Money Managament, please post here.
I also am subscribe to a news calendar weekly( please dont ask me wich one, i will not tell) and that can help me to decide wich direction and how powerfull will be that break.
God speed to all.
ps.
Today breakout IB on eur/usd was at 1.5625, up +52 pips
take 30 pips, move second lot to break even, target 1.5750
  • #5
  • Jun 25, 2008 5:02pm Jun 25, 2008 5:02pm
I got burn a lot with indicators, like i said , dont have time to wach the charts a lot, so i trade naked, the only thing i like to read is where the price goes before the news, if the price goes up before news, most sure will go after that the same direction, same principle to the other direction, cause the market is allways right and that breakout can be very powerfull( see today exemple FOMC annoucement ).
  • #6
  • Jun 25, 2008 5:21pm Jun 25, 2008 5:21pm
Quoting poliforex
I got burn a lot with indicators, like i said , dont have time to wach the charts a lot, so i trade naked, the only thing i like to read is where the price goes before the news, if the price goes up before news, most sure will go after that the same direction, same principle to the other direction, cause the market is allways right and that breakout can be very powerfull( see today exemple FOMC annoucement ).
I just use sma-20 to take profits

The success of this method (in my opinion) is in the exits, so it's important to develop a robust trailing method to take the profits.
  • #7
  • Jun 25, 2008 5:26pm Jun 25, 2008 5:26pm
Quoting DavidRP
I just use sma-20 to take profits

The success of this method (in my opinion) is in the exits, so it's important to develop a robust trailing method to take the profits.

You are 100% right David, EXITS are very important in any IB systems, i left to much money on the table before . Thanks for that tought.
  • #8
  • Jun 25, 2008 5:30pm Jun 25, 2008 5:30pm
Do you have any setup in mind right now to look at.
Find an Edge. Only way to succeed in this business.
  • #9
  • Jun 25, 2008 6:13pm Jun 25, 2008 6:13pm
Hi, any SL?
I don't say
  • #10
  • Jun 25, 2008 7:29pm Jun 25, 2008 7:29pm
for today there is no IB setups , so no trade setup, will check tomorow 5pm est. I close my trade eur/usd with 75 pips profit.
  • #11
  • Jun 25, 2008 8:12pm Jun 25, 2008 8:12pm
Quoting poliforex
for today there is no IB setups , so no trade setup, will check tomorow 5pm est. I close my trade eur/usd with 75 pips profit.
IB at TL level..... Not Bad !!!
Attached Image (click to enlarge)
Click to Enlarge Name: eu-us.gif Size: 10 KB
Find an Edge. Only way to succeed in this business.
  • #12
  • Jun 25, 2008 8:28pm Jun 25, 2008 8:28pm
So just take the Hi minus Low from previous bar (including shadows) and add that total to your current entry price to get your take profit level?

Thanks,
Scott

Quoting poliforex
When you open 2 orders , one close for 30 pips profit, move the second order to BE and let it run till reach the same amount of pips what the IB previos day has.
Prices are never too high to begin buying or too low to begin selling.
  • #13
  • Jun 25, 2008 8:39pm Jun 25, 2008 8:39pm
Poliforex, do you trade this live or just on demo? How successful have you been with it (win/loss ratio)? Lastly, how often do you get setups on the four majors? Seems like it might be kind of rare, but if the win rate is high enough, it might be worth pursuing anyway.

Thanks again for the system.

Scott
Prices are never too high to begin buying or too low to begin selling.
  • #14
  • Jun 26, 2008 9:16am Jun 26, 2008 9:16am
Quoting thehenryfam
Poliforex, do you trade this live or just on demo? How successful have you been with it (win/loss ratio)? Lastly, how often do you get setups on the four majors? Seems like it might be kind of rare, but if the win rate is high enough, it might be worth pursuing anyway.

Thanks again for the system.

Scott
Thats for sure, it is rare but will be 80% winning on my trading so far since march, maybe every 2 weeks you get this setup and mostly you will get on all 4 majors at the time, so load your boat when you see that. Sometime it gets 3 candles IB in the row and that will be in my book, 100% winning and very powerfull.
I will go in vacantion on june 30 and will be back on july16, if someone wants to take it from here i appreciate.
  • #15
  • Jun 26, 2008 10:17am Jun 26, 2008 10:17am
ive tried this twice,n it actually is very effective.both trades closed n im very happy. but i need to practise more to gain confidence n discipline
  • #16
  • Jun 26, 2008 10:45am Jun 26, 2008 10:45am
Sounds good. And besides, if you are able to capture 30-100 pips on each trade, you don't need to be trading every day.

By the four majors, I assume you mean EU, UJ, GU, and UC? Would you consider adding GJ? Looking over the last couple weeks, it has some huge breakouts.

Have a great vacation.

Scott


Quoting poliforex
Thats for sure, it is rare but will be 80% winning on my trading so far since march, maybe every 2 weeks you get this setup and mostly you will get on all 4 majors at the time, so load your boat when you see that. Sometime it gets 3 candles IB in the row and that will be in my book, 100% winning and very powerfull.
I will go in vacantion on june 30 and will be back on july16, if someone wants to take it from here i appreciate.
Prices are never too high to begin buying or too low to begin selling.
  • #17
  • Jun 26, 2008 11:01am Jun 26, 2008 11:01am
Quoting poliforex
The rules are very simple and for people like me who can not stay in the front on the computer.
Any previos day inside bar you see on major pair, place a buy stop order with 5 pips above the the high (previos day) and sell stop with 5 pips under low (previos day).
I take data from IBFX charts and i will take the new day at 5:00pm est.
Open 2 lots, once you get up 30 pips, close one lot profit and move break even the second lot. let it run and take profit at the same amount of previous day pips.
Place stops at the end of low or high previous day candel, depend of wich direction breakout is.
Any suggestion welcome and if someone is running this strategy already , i appologize, the ideea come from all the guys who open the tread http://www.forexfactory.com/showthread.php?t=86766
and i have all the respect for them.
Anyone who like to help in any way, much appreciate.
Any suggestion for Money Managament, please post here.
I also am subscribe to a news calendar weekly( please dont ask me wich one, i will not tell) and that can help me to decide wich direction and how powerfull will be that break.
God speed to all.
ps.
Today breakout IB on eur/usd was at 1.5625, up +52 pips
take 30 pips, move second lot to break even, target 1.5750
Greetings, I'm a bit confused by your directions here, can you clarify?

In other words, you use IBFX, and the new daily bar forms at 8:00 PM Eastern Time (0000 GMT). But you use 5:00 PM as the start of a new candle somehow?

1. So what you do is at 5:00 PM EST you check to see if you have an inside bar.

2. If you do have an inside bar, you place your buy and sell stops above and below the previous days candles high and low (not the inside bar's high and low, but the previous days high and low). You place 2 orders.

3. You place a take profit on one of the orders of 30 pips. Once that order takes profit you move the other order to break even and let it run the number of pips of the previous day's candle. So if high was 1.6000 on EUR/USD and low was 1.5800 you set a take profit of 200 pips on the second order.

4. Stops are at the high or low of the previous day's candle.

Is this right?
  • #18
  • Jun 26, 2008 11:25am Jun 26, 2008 11:25am
#1) That's a good point. I hadn't noticed that. The IB should really be judged at 8 PM ET (IBFX's new bar). What do you say, Poliforex?

#2) Using Poliforex's one example, the EUR/USD trade from yesterday, it appears he is taking the high and low of the inside bar candle (plus/minus 5 pips) as his buy and sell levels.

#3) That one confused me as well.

#4) I assume he means stops are the high and low of the inside bar candle.

Scott


Quoting Dreamliner
Greetings, I'm a bit confused by your directions here, can you clarify?

In other words, you use IBFX, and the new daily bar forms at 8:00 PM Eastern Time (0000 GMT). But you use 5:00 PM as the start of a new candle somehow?

1. So what you do is at 5:00 PM EST you check to see if you have an inside bar.

2. If you do have an inside bar, you place your buy and sell stops above and below the previous days candles high and low (not the inside bar's high and low, but the previous days high and low). You place 2 orders.

3. You place a take profit on one of the orders of 30 pips. Once that order takes profit you move the other order to break even and let it run the number of pips of the previous day's candle. So if high was 1.6000 on EUR/USD and low was 1.5800 you set a take profit of 200 pips on the second order.

4. Stops are at the high or low of the previous day's candle.

Is this right?
Prices are never too high to begin buying or too low to begin selling.
  • #19
  • Jun 26, 2008 11:56am Jun 26, 2008 11:56am
Attached Image (click to enlarge)
Click to Enlarge Name: screen shots2.gif Size: 72 KB


thats IBFX chart i go by, but my broker with this account is FXCM, yesterday i got out 75 pips profit, but like i said i play safe , but you would make a double pips range from a day before and thats not unusuale.
english is my second language and i have hard time explaining , but you guys got it right on all questions.
I am visiting my home land Romania, and if i have a chance to find a computer there i will check this trade and try to comunicate with you guys.
When you see your account goes green on any trade,follow your instincts and come out green, thats my philosophy.
Peace
  • #20
  • Jun 26, 2008 12:00pm Jun 26, 2008 12:00pm
Does anyone have already made a indicator for this IB daily. Much appreciate if you can point that out for us.
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