Extracted Thread (per thread starter's request)

1) If you had actually read the thread, you would have seen my posts where I answer these questions.

2) If you are already using a successful breakout system similar to mine, why not tell us how you handle fakeouts instead of asking?

Jeesus you are so bitchy! Chillax and get off your throne for a second.

Taking a stoploss is not a real way forward because everyone does that. I was hoping someone could come up with something better than what is currently known.

I have seen what happens to people here who offer an opinion other than your own so I did not want to annoy you. I was hoping for real usable solutions to the normal trading problems with systems like yours, and without incurring your bitchiness, was hoping someone else would offer up solutions. Since getting bolloxed by you doesnt matter now, my solutions are time-slice, SR avoidance, 4H/1H swing hi/lo entries and tight BE, jumping trail exits. I take as much of a fast move as possible but usually exit too early (no shame in making money by exiting too early!)

But I do like your system. Just the messenger is a bit harsh.

@ ShoppingGuy: You're not funny, you're not cool, and if all you're going to do is waste my time you are not welcome here. This thread is about learning, not about who can flame the best. There are a lot of guys posting here, but only a few try to throw their weight around. Most have already been banned. So you can become useful, or you can become banned too. Your choice.

RE Your questions, they have already been addressed in this thread and others related to it. All you gotta do is spend the time to dig it out.

OK. Wasnt trying to flame. Didnt realise this was a learning thread. Been searching for a solution to a minor trading problem (fakeout management) for a long time and yet to find one that works the way I want. Good luck with the Breakout system.

OK. I will try to attack your questions each individually. Apologies if I don't come across too clear but I will do my best. I will also share my personal Breakout trading strategy that I have come up with using this method and the guidance of the forum participants.

Before I answer: "HOW ARE TRADERS HANDLING FAKEOUTS?" I want to say what FH has said in his previous post for the record.

I know what you mean by fakeouts BUT try to realise there are no such thing. You are actually saying how does a trader handle price going the direction of his trade and then turning around and going the other direction? Ask yourself that question(not tryna be rude) for a second. That sounds to me like a few things. Entry Strategy.SL Strategy. Exit Strategy.

What I can say is how I try to avoid these supposed "fakeouts".

Entry.
1."Moving the entry further from the boundary?"
Yes.
Initially my method of choice would be to wait for a close outside of the box(boundary) of more than 5 pips. (15M charts for me by the way)

Noticed how I said I wait for a CLOSE because a "fakeout" would mean it went to that price and came back. So just wait for the close of that 15M.
Simple as that.

2. Waiting for the market to come to me.
Then after that close of the 15M chart in the direction of the breakout I take a look at the 5M chart just to confirm the direction of the breakout. Ya'know that's why you see my entries a little "late" beacuse that's about 20mins after the breakout and I'm now entering the trade. Crazy huh?

BUT as you will see in the next chart I post that sometimes it doesnt matter how long you wait. you are letting the market come to you.

Now we are in a trade! Exciting

3. Setting my stop loss.

My stoploss is at the bottom of the box on the other side of the breakout.
ALWAYS. That's 30 pips away(the box is 30 pips and that's static). It doesnt change.

However, what does change is my lot size. Depending on how much I wanna risk per trade.

4. Exiting. It's upto you.

Theres two sides to this coin.
A. You could go on a higher lot size and take a quick 5pips out and call it a day!

Pros/Cons:Higher chance of being stopped out. Faster results either negative or positive. Less market exposure

B.You could go on a lower lot size and "ride the wave" in your direction eating up pips on your way to the bank!

Pros/Cons: Less chances of you being stopped out by the market. Longer time for results negative or positive. More market exposure..


The single most important step of them all.........

4. Patience. Patience. Patience. You are a sniper with a one shot kill mindstate.

Take a look at that chart that you pointed out again the GBP/USD one. On that trade I actually bought at the close of the first breakout candle. Though it was only a 7pip profit I pulled out. It was still a profitable trade.

Patience. I used to put in 10 trades a day. It's almost Thursday and I'm on my what 6th,7th trade for the week.


Anderson
"Money Management will make you rich"

Chart attached.

So if you take a look at that chart now you will see that PA went to my TP (1.0705) but you know me, had to pull out the money when I saw I was up 10 pips.

Took 10 pips. cool.

Had I left it it would have been 40 pips as I write this.

I love this. Still learning
Anderson

...

Great job here. Thanks FH and all contributing followers.

I'm in ...

FerruFx

Hi I'm new here . I like the breakout system...

can't find the indi to download..

Go here...Page 1

http://www.forexfactory.com/showthread.php?t=304770&page=3

FerruFx, welcome aboard! Between you, Steve H. and Squalou we now have 3 of the very best coders of the FF posting here. I am happy beyond words!

Ferru, my breakout system went very quickly to the EA developmental stages once Steve and Squalou came on board. So here are the 2 most important/recent posts regarding its design. Feel free to jump in with any ideas or questions you might have.:

http://www.forexfactory.com/showthread.php?p=4803823#post4803823

http://www.forexfactory.com/showthread.php?p=4804271#post4804271

The market has opened for the week, and once more we have a perfect price arc which starts and ends at the extended CZ.

These are a few charts. I managed to pull out about 60 pips today using the stairstep strategy. I hope it's working well for everyone following this method also.


Still learning
Anderson

Chart attached SGD/JPY.
One more for the day as i was just browsing.I hope to have ten pairs to use this strategy on daily.
(looking to TP at 62.55)

Thanks again Fh
Anderson

Interesting. I never considered trading SGD/JPY because it's an exotic. But the bid/ask spread is only 4 pips.

Hey Forex Hard,

I just picked up this thread after reading about it from Steve HopWood. I like the simplicity of this

Al Mo

You're very welcome, Anderson. You're doing great. Keep those pix coming!

FxH

Welcome aboard! Like my first post says, it's so simple, it's hard. Posting charts (like Anderson has been doing lately) is always welcome.

FxH

Chart attached

I never looked at this pair either but my normal pairs wasn't giving me much at the moment so I went searching for some new prey.