Money making Breakout system

[jeet1970]

Hi

I will appreciate if someone help in coding this system for GBP/USD. I read about this system in Kathy Lien's book and traded manually for 6 months. I have modified the rules a bit, which are as follows:

Starting at 7am, London time, wait until 30 pip range is developed. If the range is not developed within 3 hours, ignore the day.

Once the range is developed, put a buy stop 5 pips above the upper range. Place the sell stop 5 pips below the lower range. If buy stop is filled, trailing stop is the lower range, and if sell stop is filled, trailing stop loss is at the upper range.

Breakout of the range must happen with increased volatility, which is measured by teh rule: Range of candle > Average Range of last 5 candles.

Position is closed by. either

Take profit at 100 pips
Trailing stop loss
Stop loss

This system makes money 3 out of 5 days a week, and every week in last 6 months has been a positive performer.

Thanks for your help.

[flexie]

Some questions then:

And what time frame are you playing in?
Atr? or just a simple average of the 5 bars?

[jeet1970]

I am using 15 minute bars. I don't use any oscillator, just the 5 bar rule. Since I am manually trading, just the visuals of candles tell me that the breakout is happening with a large candle.

[ronaldosim]

Can I understand if you mean the 30 pips ranging to be

a. between 7am and 10am London time, check if the highest value and lowest value is greater than 30 pips or
b. between 7am and 10am London time,look at 5 sets of 15-min bars and check if the highest and lowest value of the 5 15-min bars to be greater than 30 pips or
c. between 7am and 10am London time, look at 1 single 15-min bar and check if the highest and lowest value is greater than 30 pips

[jimjpy]

That's all?

[jeet1970]

Hi Ronald

The range may take anywhere from 1 Hr to 3 Hrs to develop. For example, its 8.30 and my (HighestHigh - LowestLow >= 30 pips), then I expect it to be a trending day and will place orders for the breakout. If the range is not developed by 10am, I expect that it will be sdeways action for rest of the day.

So the check is done every 15 minutes (after every bar), as I don't know when the condition will be true.

[Peace Lover]

Originally Posted by jeet1970

Hi

I will appreciate if someone help in coding this system for GBP/USD. I read about this system in Kathy Lien's book and traded manually for 6 months. I have modified the rules a bit, which are as follows:

Starting at 7am, London time, wait until 30 pip range is developed. If the range is not developed within 3 hours, ignore the day.

Once the range is developed, put a buy stop 5 pips above the upper range. Place the sell stop 5 pips below the lower range. If buy stop is filled, trailing stop is the lower range, and if sell stop is filled, trailing stop loss is at the upper range.

Breakout of the range must happen with increased volatility, which is measured by teh rule: Range of candle > Average Range of last 5 candles.

Position is closed by. either

Take profit at 100 pips
Trailing stop loss
Stop loss

This system makes money 3 out of 5 days a week, and every week in last 6 months has been a positive performer.
\

Jeet,

Could you please explain the system with a chart??? It will help us picture what your talking about

Thanks for your help.

[FXSeo]

jeet1970,

It would help a lot if you can post a sample chart (if not more) on a sample trade. That way it helps to visualize and aid in understanding the system.

Cheers!

[jeet1970]

Hi

Please see the chart attached. Here you have a range established from 8pm CET. The breakout happens to the upside and the profit potential was 70 pips.

[jgerousis]

The system you are imposing here in this thread is quite similar to hans123 trading system. Hans123 is using bothe EUR and GBP to trade, and he has broken the day into two trading sessions.

Breakout systems are great, however, they fail largely in chopping or rangin markets. You may find it useful to download Hans123 indicator and see foryourself, you can extract the code and change it to fit your system.

Regards
yanni