Puppy's Breakout system~~

Hello everyone,

Forex factory has been a very good place to learn trading forex. There are so many people sharing their systems and I have learned so much from them (whether it is successful or not).

I am going to share my breakout system that I have been trading on. The system was "originally" trying to use Han123 breakout system(you can find it in strategybuilderfx), but with some coding errors I made in MT3, it ended up with something different. Well I am not going to share my MT3 EA, because I don't want people to sell it without my discretion. However you can easily build an EA with it.
However I hold no responsibility to your own trading. Trade with what you can afford to lose.

Here it goes,
1. The system is for GBP/USD only, I haven't tried it on other pairs.
2. find the high(eg. 1.9490) and low(eg. 1.9441) between GMT+4 and GMT+8, deviate 5pip to them(1.9495(H) and 1.9436(L))
3. At GMT+9(ie. one hour after you have done step 2), If you have no trade at the moment,there will be 3 scenarios -
3.1 price are somewhere between the H and L above and at lease 5 pips away - therefore you can place a buystop at 1.9495 and sellstop at 1.9436
3.2 Price are within 5 pips to H and even higher than H - then you buy at market and sellstop at L(1.9436)
3.3 Price are within 5 pips to L and even lower than L - then you sell at market and buystop at H(1.9495)
4. Takeprofit at 80pips from your entry, stoploss at 70pips from your entry and trailing stop at 40.
5. Any buystop or sellstop trade will be deleted on GMT+8(23 hours after entry, or for friday's trade, deleted it first thing when the market is opened)
6. For any trade that is "opened", close the trade 23 hours "after the trade open time"
7. If at GMT+9, you still have 2 trades open, then do nothing more. (until you close both trades according to rule 6 and then wait for next day)
8. If at GMT+9, you have 1 trade open, then
8.1. If Price are within 5 pips to H and even higher than H - then you buy at market
8.2 If Price are within 5 pips to L and even lower than L - then you sell at market
8.3 If price are somewhere between the H and L above and at lease 5 pips away, then you enter buystop at H if Price is closer to H or you enter sellstop at L if price is closer to L
9. Money management: Well that's the difficult part~~hehe....historical results don't necessary mean anything to the future results. For 2006, if risking 0.5%, the maximum drawdown is 4.16% with profit of 22.05%. Starting from this year, I bump it up to 4% with a very small account and the result so far are basically standing still (with some small gains).

You are welcome to ask questions but I don't promise that I will answer all questions. If you have any better suggestion, I will certainly be happy to test it out.

Have a happy trading.

08 Jan
sellstop 1.9281 filled at 1400, stopped at 1.9351
buystop 1.9352 filled at 1501, stopped at 1.9364 (trailing stop)

09 Jan
Sellstop 1.9412 filled at 1231, stopped at 1.9386
Buystop 1.9465, order cancelled next day

10 Jan
Sellstop 1.9350 filled at 1340, stopped at 1.9420
Buystop 1.9417, order cancelled next day

11 Jan
Buy 1.9356 at 0900, take profit at 1.9436

12 Jan
Buystop 1.9495 filled at 0952, take profit at 1.9575
Sellstop 1.9436, not filled yet

So things aren't working out too well or am I missing something here.

From the example trade,
Say if I have $1000 and use mini account and take 0.7% risk (for simple calculation)
08 Jan 0.1 lot, end with $994.2
09 Jan 0.1 lot, end with $996.8
10 Jan 0.1 lot, end next day with $989.8
11 Jan 0.1 lot, end $997.8
12 Jan 0.1 lot, end $1005.8

say if I have $1000 and use mini acount, and take 4% risk
08 Jan 0.57lot, end with $966.94
09 Jan 0.55 lot, end with $981.24
10 Jan 0.56 lot, end next day with $942.04
11 Jan 0.56 lot, end $986.84
12 Jan 0.56 lot, end $1031.64

It all depends on what you want to achieve~~I have used this system in 2006 live with 0.5% risk and the result is what I said in rule 9. I have no idea how much I can actually risk without blowing my account due to increased drawdown. However if you want to have slow but steady gain over time, this may be a good system for you. As I said that I just bump it up to 4% risk this year and will see how it goes this year.

Have a happy trading.

Something stinks here Pal- no offense

Hehe no worries man, just want to share an alternative system due to my coding error. This month has been "standing still" in terms of equility for this system. Let's wait and see how it goes in the future. I will probably post some weekly results in the journal section from next week onwards. Hopefully this system won't give me the same trouble as the other system I use to trade live(14 consecutive losses and larger than expected drawdown.)

Have a happy trading

2006 live trades:
Total 323
Win 218, loss 105
Average payrate win:loss = 0.84

Have a happy trading.

Puppy,

Breakout systems are potentially profitable. I hope you've done your homework and backtested this system for at least 100 trades.

Good Luck,
A

Any EA availalable for this?

Hello megaleads,

This breakout system came out as my coding error in MT3. Therefore I do trade it with an EA. However I am not going to share my EA - as I already share the system. If you are interested, you can make an EA for it yourself. Although it can be traded without an EA. As a side note, this system has performed quite badly during Feb and March. The maximum drawdown was slightly larger than 2006. Thanks for your interest.

Here is the result of 2007 in terms of PIPs: Jan +270, Feb -239, Mar -345, Apr +236, May +53, Jun -106, Jul -103, Aug +225, Sept +29, Oct +266, Nov -136, Dec -348
From 2008 Jan, I am using % rather than pips - risk will be 5% per trade.

maybe roynald reagan can help..i hope he come across this thread.

This looks a lot like Nicotina's system.

http://www.forexfactory.com/showthread.php?t=51365

I can't do time-based EAs too well yet. Still learning.

hi megaleds,
Contact me that i can help you.


Best Regards,
Marcelo Marques

I have changed the system to adapt the daily range using ATR. So here is the change:
Stoploss will be 0.68*ATR(100) on daily chart.
Takeprofit will be 1.5*Stoploss
Trailing stop will be 0.5*Stoploss

It is base on the optimisation of last 2 years data - unfortunately I don't have any more data than that.

Anyway unfortunately Jan result is -5.2%. I will update the result next year.

Happy trading