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Attachments: Session Breakouts (3 Trades, 15 minutes a day)
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Session Breakouts (3 Trades, 15 minutes a day)

  • #1
  • First Post: Edited Sep 3, 2009 8:51am Sep 2, 2009 4:31pm | Edited Sep 3, 2009 8:51am
Session Breakouts Version 1 Beta

Pair: GBPUSD
Platform: MT4 for charting, your own platform for execution.

My TP: 15 pips for shorts, 15 pips + spread for longs
My SL: 30 pips

How it works: At the end of each session I determine the high and low for the session. I place a limit buy order at the high, and a limit sell order at the low.

Then during the next session either price action activates my order(s) or it does not. At the end of that next session I repeat the process by setting up pending buy and sell orders at the high and low of the last session.

I am in the Central time zone, so that means I set up my trades at 11AM, 4PM, and 3AM every trading day.

See attached pictures for more examples.
See attached indicators / template if you want the same ones I use.
See attached spreadsheet for results.

I've been lurking on FF for months and although this method is far from original I hope I can help make some of you more profitable!

FAQ:

Q: The time thing confuses me... How do I set up the iSessions indicator to work correctly in MT4 for my broker?

A: Each broker is different so you need to determine what time zone they use. After you have determined this you have to edit the properties of the iSessions indicator to reflect when each session begins and ends. Use http://www.forexmarkethours.com/ as a reference. After you think you have it right, visually inspect the chart to determine if the boxes are drawn around the right candles. It should be noted that MT4 is totally optional for this method.

Q: What if I don't want to use MT4 for this?

A: Then dont. Open the hourly chart on your trading platform and just examine the last 9 candles at the end of each session. Place your trades at the highs and lows and you're set.
Attached Image (click to enlarge)
Click to Enlarge Name: Session Breakout Instruction.JPG Size: 125 KB
Attached File(s)
File Type: mq4 i-Sessions.mq4   6 KB | 1,905 downloads
File Type: ex4 i-Sessions.ex4   6 KB | 1,412 downloads
File Type: tpl session breakoutsv1.tpl   65 KB | 1,433 downloads
File Type: xls Session Breakout Results.xls   8 KB | 1,714 downloads
  • #2
  • Edited 7:55pm Sep 2, 2009 5:07pm | Edited 7:55pm
Hello.

how did you came to the conclusion to take 15 pips TP and 30 SL ?


Good luck, buddy...


Edit:
put a note in you first post that time is different for every broker and people should adjust the session indicator....or you going to have the first 100 pages only with "time" questions.

also, put this link there to make it easier for everyone. http://www.forexmarkethours.com/
  • #3
  • Sep 2, 2009 5:24pm Sep 2, 2009 5:24pm
Looks good. Imma demo this one.
  • #4
  • Sep 2, 2009 7:32pm Sep 2, 2009 7:32pm
G'day DarkDays
Times confuse the hell out of me.
I'm at +10 GMT and broker is +2GMT. Do I need to change indy input times?
Cheers
We are all One. Be present. Be the Observer
  • #5
  • Sep 2, 2009 9:09pm Sep 2, 2009 9:09pm
It seems to have a high hit rate. I'm sure it will evolve and change as time goes on and that is why this method is in beta.

Thanks for the note about the time zone, and actually my charts were off. I've corrected it and everything is accurate now. I will be replacing my examples soon.

Quoting ForexSV
Hello.

how did you came to the conclusion to take 15 pips TP and 30 SL ?


Good luck, buddy...


Edit:
put a note in you first post that time is different for every broker and people should adjust the session indicator....or you going to have the first 100 pages only with "time" questions.

also, put this link there to make it easier for everyone. http://www.forexmarkethours.com/
  • #6
  • Sep 2, 2009 9:10pm Sep 2, 2009 9:10pm
Yes you will need to change the indicator. See the FAQ I put in the first post.

Quoting Iamfx
G'day DarkDays
Times confuse the hell out of me.
I'm at +10 GMT and broker is +2GMT. Do I need to change indy input times?
Cheers
  • #7
  • Sep 2, 2009 9:45pm Sep 2, 2009 9:45pm
backtested this u get better results with lower dd if u use some ma filter ie only take longs if price above xx ema
  • #8
  • Sep 2, 2009 10:22pm Sep 2, 2009 10:22pm
Thanks for doing that jtmoore. Sounds like that is definately worth looking into.

Quoting jtmoore007
backtested this u get better results with lower dd if u use some ma filter ie only take longs if price above xx ema
  • #9
  • Sep 3, 2009 3:07am Sep 3, 2009 3:07am
You do realize that with 1 loss you need 2 wins to cover it and then more to profit yeh?

To be honest I don't think that would work - I could be wrong, but the MM tells me it won't.

VB,
  • #10
  • Sep 3, 2009 3:47am Sep 3, 2009 3:47am
Quoting DarkDays
It seems to have a high hit rate. I'm sure it will evolve and change as time goes on and that is why this method is in beta.

Thanks for the note about the time zone, and actually my charts were off. I've corrected it and everything is accurate now. I will be replacing my examples soon.
Following the thread here then....
SFSG (So far so good) with the trading
  • #11
  • Sep 3, 2009 4:57am Sep 3, 2009 4:57am
Quoting DarkDays
Thanks for doing that jtmoore. Sounds like that is definately worth looking into.
Hi,

Two things you might find interesting.

 

  1. Corporate traders (hedge funds, financial institutions, etc.) in the NY session often tend to reverse the price action of the Asian and European sessions. Especially for the major pairs, including GBPUSD which you trade. Basically, they come to the office need to adjust their positions to what was going on during the day in Asia and Europe, and with nobody steering against them after the London close they are able to control price flows. So here an MA filter etc. that goes opposite to the direction before NY opens can give a very strong signal.
  2. On the other hand, especially for USDJPY, if the NY session closes on or near the session high or low, during the inactive hours before Asia opens (20:00 to 23:00 GMT) you will often see that the flow reverses. So assuming the NY session saw the price of the pair go down, buying above the high of the last NY candle (opposite for a NY bull session) and then closing the trade before Asia opens is statistically successful. Adding some oscillator for filtering helps here.

Just wanted to share this, use at your own risk. Good luck!

jesper

  • #12
  • Sep 3, 2009 6:03am Sep 3, 2009 6:03am
Jesper. Thanks for that information, hope you keep following the thread and adding more comments as you see fit, Im sure darkdays also will appreciate your input

Rebel
  • #13
  • Edited 7:53am Sep 3, 2009 6:11am | Edited 7:53am
Quoting rebelheart
Jesper. Thanks for that information, hope you keep following the thread and adding more comments as you see fit, Im sure darkdays also will appreciate your input

Rebel
Well, I'll see. Personally I don't believe in session-based trading. I watch them, because different market players make for different flows. I trade price action, which can be continuation or reversal, and look for support and resistance zones. The latter in my opinion are not defined by sessions, I confirm them on H4 charts. (Think about this: The last tick of the session is the session high and price continues rising; you need to enter with a market order. On the other hand going short after bullish session you are likely to miss the optimal entry point where the reversal happened and leave pips on the table; the trade gets a less-than-optimal risk/reward relation.)

What's strong about using sessions is that you have rigid system with clearly defined entry and exit points. That drives 80% of profitability. Also, they are set-it-and-forget-it (unless you want to manually confirm with a filter indicator), so there is no need to sit in front of the PC all day (and no risk to mess with open orders just because you happened to see them turning against you).

But trading styles are like tastes in fashion: to each his own. If it works for you, use it!

jesper
  • #14
  • Edited 9:11am Sep 3, 2009 8:53am | Edited 9:11am
I was only in the first trade, as I slept through my alarm last night. Doh!

I hope the rest of you got these.

*edit* Just so you guys know, this chart is off by one hour. Each of the sessions should have painted one hour to the right of where they are. I use multiple PCs to chart and I finally have them all in sync. The charts from here on should be accurate. If they are not please let me know.
Attached Image (click to enlarge)
Click to Enlarge Name: 3.jpg Size: 105 KB
  • #15
  • Sep 3, 2009 8:56am Sep 3, 2009 8:56am
Yes with the current money management you need over a 66% hit rate to be profitable. We shall see how it plays out. So far it seems to be higher than 66%. But I will only base changes to my trading on continuous forward testing.

Quoting VitaminBeer
You do realize that with 1 loss you need 2 wins to cover it and then more to profit yeh?

To be honest I don't think that would work - I could be wrong, but the MM tells me it won't.

VB,
  • #16
  • Sep 3, 2009 9:05am Sep 3, 2009 9:05am
Thanks for your input jesper, it is very welcome here. I am positive that this is not an optimized system, but as long as it provides me a positive net of pips on an average monthly basis I will continue to trade it.

After all it only takes me about 10 minutes to set up all the trades in a day... So if I can grow my equity an extra 1% a week from this, well fantastic!

I totally agree about the rigidity of a system playing a part in the success of the trader. For me, having rigid entries and exits helps filter out emotionally influenced trades.

Look forward to hearing more from you

Quoting jesperweber
Well, I'll see. Personally I don't believe in session-based trading. I watch them, because different market players make for different flows. I trade price action, which can be continuation or reversal, and look for support and resistance zones. The latter in my opinion are not defined by sessions, I confirm them on H4 charts. (Think about this: The last tick of the session is the session high and price continues rising; you need to enter with a market order. On the other hand going short after bullish session you are likely to miss the optimal...
  • #17
  • Sep 3, 2009 9:13am Sep 3, 2009 9:13am
Quoting DarkDays
Thanks for your input jesper, it is very welcome here. I am positive that this is not an optimized system, but as long as it provides me a positive net of pips on an average monthly basis I will continue to trade it.

After all it only takes me about 10 minutes to set up all the trades in a day... So if I can grow my equity an extra 1% a week from this, well fantastic!

I totally agree about the rigidity of a system playing a part in the success of the trader. For me, having rigid entries and exits helps filter out emotionally influenced trades....
Thanks for the nice words, and all possible success for your trading!

You'll mostly find me on the following two threads (neither my own):
Long-term direction:
http://www.forexfactory.com/showthread.php?t=191071
Short-term hints
http://www.forexfactory.com/showthread.php?t=156630
  • #18
  • Sep 3, 2009 2:46pm Sep 3, 2009 2:46pm
Are there any backtesters willing to run this system through its paces over the last few years?

I don't mean to seem lazy... But I don't have access to the software I feel I need in order to do it justice.

However, if anyone can educate me on what I should be using to backtest go right ahead!

With the current R:R if we can achieve a 75% hit rate with this system that would be phenomenal. Visual backtests of the last couple of months seem to reflect that...
  • #19
  • Sep 3, 2009 2:54pm Sep 3, 2009 2:54pm
Why H1? Why not M15 ?
  • #20
  • Sep 3, 2009 3:38pm Sep 3, 2009 3:38pm
Well entries are based off of highs and lows of a session. The iSessions indicator will work on other time frames, but there wouldn't be a reason to use M15.

But if you're talking about a different breakout strategy let me know.
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