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0400-0700 GMT Breakout Strategy

  • #141
  • Jul 22, 2009 7:43pm Jul 22, 2009 7:43pm
[quote=fed;2894720]a)Yes correct but the only thing that you should know is that for short don't include the spread, include the spread only for long trades. Also the 60 pips could change depends how volitile the market or the pair gets, ATR will measure the volitility, I started to usd ATR recently and I am not too experienced with it yet but I am researching ATR from google

This is an indicator that gives you the ATR in pips directly and also it can be showed in the main window chart and no taking space with a special window. I took this from some where here in Forex Factory. Could help you.
Attached File(s)
File Type: mq4 ATR in Pips.mq4   2 KB | 838 downloads
  • #142
  • Jul 22, 2009 7:44pm Jul 22, 2009 7:44pm
Quoting zuret9
Hi Tasciy,

What you are sharing is a very simple breakout strategy. There are many ways traders trade these (entry, sl, tp etc) but i'll allow you to work out what works best for you.

However, a point you might want to consider in the development phase is the average daily range of the currency pair you are trading in relation to the size/width of the 2hour box formed.

Attached is an indicator to help with the process (i hope?).

Best of Luck.

Z
nice, thanks, is that smililar to ATR?
  • #143
  • Edited 7:58pm Jul 22, 2009 7:47pm | Edited 7:58pm
[quote=Dibanos;2895227]
Quoting fed
a)Yes correct but the only thing that you should know is that for short don't include the spread, include the spread only for long trades. Also the 60 pips could change depends how volitile the market or the pair gets, ATR will measure the volitility, I started to usd ATR recently and I am not too experienced with it yet but I am researching ATR from google

This is an indicator that gives you the ATR in pips directly and also it can be showed in the main window chart and no taking space with a special window. I took this from...
Yes thanks, I have it already and very usefull. And you are right the SL and TP could change depends on the volitility of the market.
  • #144
  • Jul 22, 2009 8:57pm Jul 22, 2009 8:57pm
Try trading this only on the first London open of the week with a longer TP and a smaller stop. Very robust on that day. Also can be done on some Fridays and the last day of the month.
  • #145
  • Edited 9:16pm Jul 22, 2009 9:04pm | Edited 9:16pm
[quote=Dibanos;2895227]
Quoting fed
a)Yes correct but the only thing that you should know is that for short don't include the spread, include the spread only for long trades. Also the 60 pips could change depends how volitile the market or the pair gets, ATR will measure the volitility, I started to usd ATR recently and I am not too experienced with it yet but I am researching ATR from google

This is an indicator that gives you the ATR in pips directly and also it can be showed in the main window chart and no taking space with a special window. I took this from...
hi dib,
could your show us abot using this ATR? I'm 1st time download it and doesn't know how to relate it with this breakout strategy? I see the input 2 variable. One is period and one is multiple? could u explain?

Fed, how u use this ATR? If one order hitted both TP1 and Tp2..what about the other pending order? If one hitted TP1 and Tp2 is breakeven how about the other side order as well? U still keep it until the end of the day or u cancelled it?
  • #146
  • Jul 22, 2009 9:06pm Jul 22, 2009 9:06pm
Quoting fed
At very volatile days I do increase the SL to 80-100 pips depends of the daily moving average, then ofcourse I also increase the TP pips as well. I follow the ATR which gives me a good view of the volitility. Because I use the 30 min chart, ATR will show 15 pips, what I do is multiply that by 2 and the number of pips equals 30 pips, that is why I aim 30 pips for my first target at this time. When or if things become volatile again I will look at the number that ATR will give me and then apply that.
Do you have a specific formula you use (or can you apply one to what you're naturally doing) to set your s/l and t/p levels?

Applying a s/l of 60 pips for every trade does not show to be profitable in my backtesting. How exactly does ATR play a role in your trading? Can you tell us which ATR indicator and settings you use?

Thanks!
  • #147
  • Jul 22, 2009 11:19pm Jul 22, 2009 11:19pm
here is an example, this is how the line would be brocken and you will notice that it was bulls all the way. I back tested this was on nov 21 2008, looks like volitile was high and this particular exmaple I would target 50 pips with TP1 and 80 pips with TP2, in this example I am risking about 115 pips per order, and I am targeting total of 180 pips, or I could of increased the TP1 to 60 pips and that would worked out better. This is why I need an indicator which will show me the number of pips between sup and res lines so I can calculate TP1 TP2 and SL so it would meet my money management more accurately, I do lack of that right now, I am always off by 15-20 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: breakout.jpg Size: 48 KB
  • #148
  • Jul 23, 2009 12:05am Jul 23, 2009 12:05am
hi
so finally what box u are trading in this method 4 to 7 GMT or 2 to 5 GMT ?
or ?
thanks
  • #149
  • Jul 23, 2009 12:54am Jul 23, 2009 12:54am
Quoting samer960
hi
so finally what box u are trading in this method 4 to 7 GMT or 2 to 5 GMT ?
or ?
thanks
hi, I use 2-5 gmt. Tonight is a slow one which gives me time to get ready for my pending orders. I have opened 4 pending orders 2 for buy at 6510 and 2 for sell at6445. Looks like bulls to me but again if the trend line breaks then the bears might win the battle tonight. The range between the high and low is about 48 pips.

wish me luck guys, I need it every night.
Attached Image (click to enlarge)
Click to Enlarge Name: breakout1.jpg Size: 80 KB
  • #150
  • Jul 23, 2009 1:07am Jul 23, 2009 1:07am
thanks , i took almost the same trades but my stop loss is a bit lower at 1.64279
regards
  • #151
  • Jul 23, 2009 1:28am Jul 23, 2009 1:28am
my long pending order triggered, it also broke the yesterday's high and also stayed above the trend line, a good sign for the bull power. Let see what happens. Good night all, I will go to bed now and if my first TP hits my cell will alert me and will then set tp2 to break even.
  • #152
  • Jul 23, 2009 4:30am Jul 23, 2009 4:30am
Quoting fed
hi, I use 2-5 gmt. Tonight is a slow one which gives me time to get ready for my pending orders. I have opened 4 pending orders 2 for buy at 6510 and 2 for sell at6445. Looks like bulls to me but again if the trend line breaks then the bears might win the battle tonight. The range between the high and low is about 48 pips.

wish me luck guys, I need it every night.
my entry 1 triggered with 30 pips, making an adjustment for order #2 to break even.
  • #153
  • Jul 23, 2009 5:52am Jul 23, 2009 5:52am
Hi all/Fed,
I've realised that I've kind of been trading this strategy for the last month without knowing it.
Haven't read all the posts-no need as it's fairly simple.
It's in tune with what I've learned from fx markets, and that is that they're most active from 6.30-7.30am London time. If breakouts/trends are going to occur, then that's the time, unless you have strange situations like today where there was big news at 9.30am (I think) so markets will be waiting for that so less of a follow through than usual.

I also use trend lines to help-a good example being eur/gbp break this morning, but you know what, these posts always have people adding on stuff that isn't needed. Great system, I'll incorporate it into my trading-think it's better than the original Big Dog strategy as to me, the US market is wild and unpredictable!

bootsy
  • #154
  • Jul 23, 2009 5:56am Jul 23, 2009 5:56am
Fed what pair do you trade

Danny
  • #155
  • Jul 23, 2009 8:07am Jul 23, 2009 8:07am
looks like todays 4-7gmt breakout has lost thats two in a row first time i have seen that since i have been watching this thread


fed's 2-5gmt breakout did hit tp1 just
"The person who knows that enough is enough, will always have enough". .
  • #156
  • Jul 23, 2009 8:13am Jul 23, 2009 8:13am
+30 pips ala fed's version

Thanks fed!
  • #157
  • Jul 23, 2009 8:43am Jul 23, 2009 8:43am
Quoting maq
looks like todays 4-7gmt breakout has lost thats two in a row first time i have seen that since i have been watching this thread


fed's 2-5gmt breakout did hit tp1 just

yes we lost today but second order still last. It's looking not good :/
  • #158
  • Jul 23, 2009 9:16am Jul 23, 2009 9:16am
Quoting bootsyjam
Hi all/Fed,
I've realised that I've kind of been trading this strategy for the last month without knowing it.
Haven't read all the posts-no need as it's fairly simple.
It's in tune with what I've learned from fx markets, and that is that they're most active from 6.30-7.30am London time. If breakouts/trends are going to occur, then that's the time, unless you have strange situations like today where there was big news at 9.30am (I think) so markets will be waiting for that so less of a follow through than usual.

I also use trend lines to help-a...

Hi Bootsyjam
How did you know that today was big news? Everyday are any nwes about cable but how did you know that this informations were important?
  • #159
  • Jul 23, 2009 9:19am Jul 23, 2009 9:19am
Quoting olie02
yes we lost today but second order still last. It's looking not good :/
Yes
And 2nd order hit SL also
  • #160
  • Jul 23, 2009 9:22am Jul 23, 2009 9:22am
hi all, just woke up after making that adjustment and as you all know 30 pips tonight that we made.

It broke that trend line that I showed on the prev pic, and that trend line was a sup and became a res, now the price is making its way up to res trendline and the rule is it will bounce and continue down, probably might break the lower line. I use to take those trades as well where some days the price would come back and break the low or high lines 2x but my work shift changed and I have no time to look for a second oportunity.
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