Breakout + Spread!! Sure!!!

Would love to see how many ppl are still rolling with this method.
Regards Togu

I always use this strategy but keep working with a WEEKLY...

Hi Eagle,

Thanks for posting

Are you trading a straight breakout and using the weekly to determine a longer term trend thereby serving as a filter?

Kind regards

Mark

hi Eagle

Why you have changed ur trading rules? I thought you had 1 hour TF why weekly now? Did you find trading 1h TF and scalping hard with your method? I'm currently using panca scalping on 4 h TF for 25pips and it's been rolling with the martingale system. I know martingale is very risky, I've been betting on sports last year and I lost all my deposits due to the martingale system but with this panca I'm generating good. Can you clarify why weekly TF?

Thanks for the great system.
My question though, how do we filter false break-out?.
Are you using weekly chart to determine the overall sentiment of the market.?

any body still on this system? Why did the thread Die suddenly

Up to this point, ive learned that this system provides great results with EUR,GBP, and CHF pairs.

I just have two general questions

1. How to determine a false breakout of the box
2. Where to take profits( 2 times the pip range of the box or...)

I've tried some methods for the false breakouts but none seem to have worked too much. Anyone have any thoughts?

Can anyone tell me what indicator is being used in threads #471 and #560?

Thanks in advance!

Hi Eagle!, I have been looking at charts for several days looking for a new trading method to compliment my existing ones. After a couple of hundred hours at my PC I thought I had discovered a fantastic new Breakout system.
I was so excited! I continued my research and did all kinds of backtests and spreadsheets to back up my discovery - everything was looking incredibly good.

Today I decided to go live with it and it worked like a charm.
After that I though I need to build an indicator so I would not have to draw the lines manually on my charts and as I was searching - I found your EAGLE BREAKOUT INDICATOR !

It is EXACTLY the method I THOUGHT I Had Discovered, but you beat me to it.

This is a super indicator and I have already included it on my charts an have had a great trading day.

THANKS for all your work and for sharing this indicator.

PS. As I was typing this, I just had another winner with EURJPY!

BIG!!!!!!!!!!!!
CONGRATULATIONS !!!!!

Hi Folks,

I use a similar strategy on the GBP/JPY and post it on the GBP/JPY Indicator thread that seemed to have died. You all are welcome to join me there, but I do no calls, just observations. I trade live full lots, so I am committed and am profitable, but you must make your own trade and money management decisions. No whiners!

I will endeavor to codify my trading rules for clarity.

Bon Pippage!

Yes.. PA has reverted to a temporary pattern which makes this strategy profitable in current market conditions on some pairs....

Thanks Eagle.

I have been back-testing and trading this system live for some time now ..... and I am deeply grateful for the person who introduced it. This is a sound, solid system ..... however, I have taken the liberty to combine a couple of things with it which have been very very helpful in taking my trades.

An Indicator called

AK_Zig_Zag_Pointer.

EMA144
EMA169

I believe these EMAs form a tunnel which is perhaps called Vegas Tunnel? or something like that. If a breakout is happening towards this Tunnel I get very cautious or dont take the trade at all. The safest trade is when trading price is 35 pips away(EUR/USD) which is considered a rebounding zone.
If a breakout faces the ZigZag Pointer ..... it means the price is upfront with a vital support or resistance point.

And with the keen scrutiny I have learned that this sytem works flawlessly if you turn your time frame to 5M ..... I mean add the indicators to 1H but then turn the chart into 5M for your entry. I am adding an image of a recent breakout and you will know how zig-zag pointer and Vegas?Tunnel let me get away with a few pips and I did not had to worry about my SL. Providing I can always settle down for fewer pips .. only if they are in profit.

P.S. Sorry I forgot to mention my entry rules ... which are a little different ... I let one 5M candle completely open and close outside of the box shadow and take the trade on next bar open ... as of fixed SL .... that could give you grief ... always decide your SL according to the price movement in the market.

Thanks and would love to hear how it sounds.

ive seen this one before...

actually the original creator use simple moving averages, not exponential moving averages... its basically a very simple trading method... its the same as how you interpret price vs moving averages.. a close above is bullish, a close below is bearish...

the creator chose long term moving averages because they move relatively slow vs say a 20sma

of course if you play based on a moving average which is flat youll be right 50% of the time and when you are right and stick to that side itll of course be profitable

Absolutely not ..... I don't trade the tunnel or moving averages .... I just use them as a filter. I use them to know if the breakout I am getting will go up further ..... I use zig zag for the same purpose .... I trade eagle breakout system not these moving averages .... if I used them, I won't need breakout indicator and if I used them I would take trades even outside the box when price touched these EMAs.

Interesting approach..zotopec.. thanks for sharing..
Can you upload a copy of the indi? and tpl file you are using..
Also I notice you are using different TF and Breakout box settings..?

I have attached the copy of indicator here ..... however, template is default. I have attached the indicators to my chart on 1H and then changed it to 5M TF, thats why you are seeing an out-stretched box .... the tunnel moving averages are, of course, Exponential and none other. If you are way too cautious in taking trades feel free to add a 400SMA ...... thats the red line in my screenshot and also consider it a filter. And believe me, this set-up could not let you take a trade someday .... but whenver it lets you, you will be happy.

Pip Up!


P.S. No system is flawless and no system is useless either. When market behavior changes, we gotta modify our system, shed some things and add some things .... and it still works.

Thank you zotopec, very helpful.
But, what about your SL and TP?

Hi

First Of All I Wana Tell That Thank's Alot To Eagle For Share This System.

I Will Very Thankful , If Every One Help Me To Know That ;
Exactly Wich Time Of Gmt(ofcourse With Out Daylight Saving) I Must Draw The Box .

Thank's Alot.

Hi folks,

to clear things up:

i am a system tester (pro). I tested the eagle system Eur/usd, took me 5 hours:

win: 10 Pips /sl:20 and
10Pips / sl: range of 6-9 GMT (this means the stop loss is set at the barrier of the other possible entry:
example: long on 13500, short on 13450
-> in on 13450 (->sl: 13500) cause we got in at 13450, so the other side is the stop loss.

The results are normal/nothing special:
10 Pips / sl:20 = break even , the other system
(10Pips / sl: range of 6-9 GMT) -720 Pips (!) ....

The Problem of the system is, that you win often but if you loose you loose more than you made before:

Example (10 Pips win/sl: range of 6-9 GMT):

10
10
10
10
-83 .... that's the Problem: overall you loose -43 Pips.

The longst winning series was about 19 times in a row, so you made 190 Pips in a row, but overall you loose.

if you set sl to 20 Pips in Range, it's break even(about:2000Pips / -2100 Pips) , tested back to 18/2/2008 ....

The System does NOT work, at least for Eur/Usd from 6-9 GMT.

I think if you tweak the system a bit you can get a CRV (Chance/Risk) of 1,5 to 1,8 MAY BE... nothing interesting for me, too bad, if some indicators change systems get back to break even or worse.

Thanks for all forexmembers for their ideas, this was my contribute to the scene.

But thanks for the idea !