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London Open Breakout


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To kick off, here is my new Breakout strategy:

 

Break out range - 10 to 1030 BST. Kraven, in another thread told us how UK news causes problems for the London Open breakout with spikes and reversals. This was indeed a good tip ao I took it on board.

 

Many people use the asian session or similar. I think that I only want a small range to breakout from so I use half an hour.

 

GBP/USD is the most volatile we are told so that is what I watch. I don't trade it live since I have dodgy internet. It comes and goes.

 

What else to tell? Ah! the indi - 'ant_GUBreakout_V.O.4 by andee'

 

http://i914.photobucket.com/albums/ac341/freddieforII/2206.jpg

 

Large 'buscuit coloured' area is just a marker for 0800 to 1000 london open. Price is just breaking out...

 

Anything else please ask

 

Freddie

Edited by Freddie
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Here is today's result:

 

http://i914.photobucket.com/albums/ac341/freddieforII/2206Sabotage.jpg

 

The dark lines show the time of the range, red lines a continuation so that one can see where the breakout occurs.

The range here is over 30 so any 'pop out and go to the other side' is a fail!!

 

While I cannot trade live I am just watching.

When I trade it properly I will use three pending trades each way with TPs of 20, 35 and 40 SL 25.

Winning days yeild 95 pips each way. Today would be a loss of 150 pips.

Edited by Freddie
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this ea may help you baktest these strategies. http://www.forexfactory.com/showthread.php?t=239788

 

Thanks for the consideration but I would have no idea what to do with it. EAs are quite beyond me. I need total hand holding with anything like that.

 

The other thing is that generally people say that back testing is useless. I don't know but I will look back a couple of months to see what happened and since I have three months until I can go live, I will record the results daily until then.

 

Having said that, I have tested other breakouts and they have all failed. I do believe that Kraven's 10 o'clock start has some merit.

 

Freddie

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Hello all, see you've started Freddie. how do i insert pics off the harddrive?

 

For this site one needs to make them jpeg and one has to have a url for them.

I use MS 'office picture manager' to crop them to the right area then 'paint' to save them as 'jpeg'. Next 'photobucket' to save them online and to find a url which I copy and paste into my post.

 

Lots of fiddling about but needs must!

 

Freddie

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bloody hell, i'll just describe my trade today.

 

lower channel level was at 1.5150 upper at 1.5226. i got the upper level from the 9am 15min candle. when big news is due, like retail sales this morning at 9.30 i'll draw my lines before it happen's, and see how the price moves. Sometimes with news the price mulls around (like today after 15:00 US housing data) then i'll take my time and the line to 10:00am and not trade till then, a lot of the time the news is seen as minor, then too i take the 10am (it's amazing how small news can cause a slow but big price move). Sometime's the price shoots up (like this morning on data) you can often predict this and should be prepared (hence me taking the 9 candle high). My price target is the size of the channel (which was 70pips today, but i'll settle for 30 as that's my daily target).

 

i also sometimes trade off the 15min news candle, taking it's high and low as my breakout channel. if i'd done that i still could have got 48pips.

 

SL varies, sometimes i take the low/high of the previous 2 candles.

 

hope this is clear because the pic maularky is too much, know wonder you don't see many on here.

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when the news is as good as it is today i stupidly jump in. tried to buy at .5371 but was given a price of .5381. i have a SL at .5305 just under the last red 15min candle (bit big but i'm cofident it won't get hit,however this changes with sentiment). My main concern is the bank stress tests but news leaking out says all uk banks (and most euro banks) will pass. fingers crossed as i could ride this all day (and possibly longer) if thats true.
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those who are looking for a breakout box can go here

 

hxxp://www.forexfactory.com/showthread.php?p=2229552

 

click on the paper clip icon. all breakout one's pretty much do the same. there's also a GU USopen one there. time will have to be altered to suit.

Edited by kraven
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OK. if you follow the 15min candle rule (after 15m news candle enter when price moves above/below candle) you'd be 50pips up as i post with a SL of 35 (news candle size). im currently on +65 which i would normaly be happy to take however with the bank news coming soon i may hang-on. only problem being is the market can spike terribly in both directions with this much waited news, this could take out my SL which i've just move to just short of entry price. If price hits +70 i'll take it. then maybe try to re-enter after news just to be safe.
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To kick off, here is my new Breakout strategy:

 

Break out range - 10 to 1030 BST. Kraven, in another thread told us how UK news causes problems for the London Open breakout with spikes and reversals. This was indeed a good tip ao I took it on board.

 

Many people use the asian session or similar. I think that I only want a small range to breakout from so I use half an hour.

 

GBP/USD is the most volatile we are told so that is what I watch. I don't trade it live since I have dodgy internet. It comes and goes.

 

What else to tell? Ah! the indi - 'ant_GUBreakout_V.O.4 by andee'

 

http://i914.photobucket.com/albums/ac341/freddieforII/2206.jpg

 

Large 'buscuit coloured' area is just a marker for 0800 to 1000 london open. Price is just breaking out...

 

Anything else please ask

 

Freddie

 

Freddie the long BO would have given you about 17 pips before retracing.Why dont you also monitor it as a scalping type strategy too.That is maybe set TP1 at 10 pips or so and see what happens.

The reason I say this that Ive been playing about with the NY open from 1200 to 1400 BST with a 10 pip scalp and it works well.Average about 150 pips a month.Use a 15 pip SL.

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pauli don't have anything less the 1:1 ratio eg 15 tp 15 sl

 

if the GU goes past 1.5500 sometime early next week i think (if news is good) we could have a hell of a GBP rally to 1.6400. only news for next week is US data until thursday (uk jobs and consumer credit). if US data is poor then up it may go and quickly.

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OK. if you follow the 15min candle rule (after 15m news candle enter when price moves above/below candle) you'd be 50pips up as i post with a SL of 35 (news candle size). im currently on +65 which i would normaly be happy to take however with the bank news coming soon i may hang-on. only problem being is the market can spike terribly in both directions with this much waited news, this could take out my SL which i've just move to just short of entry price. If price hits +70 i'll take it. then maybe try to re-enter after news just to be safe.

 

Yesterdays trade came in this morning for about 125 pips.I left it at 10 am and didnt take profits just to see.This mornings kicked in as you said and Ive taken 50 pips.

With my normal trading I was looking to go long on EU before the news as it was setting up nicely.I trade purely price action and S and Rs so it gave me a great signal.So the news went the right way and gave me a FEW pips....lol.Also the GU H1 candle pattern was bullish so everything was right and it all moved together.

I honestly think that a lot of the big boys know the news before it comes out and the set ups before the news normally give the right direction or this could be me thinking there's a great conspiracy going on...lol again.

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i moved my SL a few time and i've just exited trade at +20. a bit dissapointed could have used .5400 as my support but i'd moved SL from +50 all the way down to +20 and didn't want to go any further. remember a 'profits only a profit when it's banked'. May get in again don't know yet.
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'breakout trading idea's' freddie i though you traded the '5 bar'?

 

That is for trading from a chart. Breakout was always my first love, but she tended to spurn me. Now with your assistance I think that we will have a marriage made in heaven!!

 

http://i914.photobucket.com/albums/ac341/freddieforII/230615m.jpg

 

Your picture for this morning but I noticed it wnt down for a sell breakout-- Just as I am typing this the electric has gone!!

 

I am on my lap top battery but the router from my neighbour has gone down. I will try to save this and send when the 'tok' returns.

 

Only a couple of mins but I'd better send this in case of another break...Internet not returned yet.

 

Freddie

 

Add: The sell went down to 42 then retraced.

Edited by Freddie
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