London Open Breakout

[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.

 

Like Kraven says...R/R is important!!

I have been looking at a three part system - buy/sell three lots with TP at 15, 30 and 50. SL 15, that gives me a 45 risk and 95 reward but the 15 retracements killed that.

With the 10:30 start I have noticed that there are a number of 40 minimums and few losses after a small gain so I am thinking of a 25 SL and 35, 40, 50 TPs maybe even higher for the last figure.

 

Freddie

Edited July 23, 2010 by Freddie
Grammar

[Freddie]

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 ...

 

I will try to put this on to today's early picture.

 

I'll post now and add the pic as I sort it out, I'd like to see your system in action. Not much good at reading - picture tells a better story.

 

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

 

I make that a 33pip win. I must read the book and get a handle on this, looks a good system.

 

Freddie

Edited July 23, 2010 by Freddie
Pic update

[pauli79]

I'll go along with that title..Breakout Trading Ideas...sounds ok to me.

[kraven]

freddie i was thinking of something similar for RR. on news bar entry like i've described with 3 lots SL 10, TG1 15, TG2 30 TG3 where ever (say 45). that would keep losses to 30-35 and profits 45, 30, 15 = 90....3:1.

this is only for 'news bar breakout' entries.

i'll look into joining a site to let me download pic (bit of a hassel) then i'll try to post tonight.

 

i'm online normaly from 8 til 4, pop out from time to time, and later on 11ish in the evening

 

when do you guys trade? as sometimes i feel i'm posting to myself for hours.

 

i'm going to miss the bank news at 5:00, if i were here i'd trade the news candle, bit i'd wait for the 15min news candle to close. why don't you try it.

Edited July 23, 2010 by kraven

[pauli79]

freddie i was thinking of something similar for RR. on news bar entry like i've described with 3 lots SL 10, TG1 15, TG2 30 TG3 where ever (say 45). that would keep losses to 30-35 and profits 45, 30, 15 = 90....3:1.

this is only for 'news bar breakout' entries.

i'll look into joining a site to let me download pic (bit of a hassel)

 

when do you guys trade? as sometimes i feel i'm posting to myself for hours.

Hey Kraven I normally start around 6 am ish UK time and go on until I'm fed up of bagging all the pips so Im normally around.I only look at the forum ad hoc though during the day and when I know I have time to do stuff.I`m always around at some point however.

How about you...you have a pip quota of 30 pips I think you said and then you pack in?I should get more like that.

[Freddie]

Hi Guys,

not trading just watching when I am allowed to. I am usually awake at 0500 UK but off to bed by 20:00 UK unless you are replying to the thread. Then I am too interested in what you have to say!!

 

In Malaysia I am up at 24:00 UK and in bed by 16:00 usually.

 

Like the staggered TPs for the news. Would have been better than waiting for an exit.

 

I will PM a mod about the change of title. I actually like the 'open and news' one forget what was actually said, I will post this and then go look.

 

Freddie

[kraven]

no i don't pack in. but if i get say 60 pips and loose 30 i'll quit.

 

if i have a good day and get 90pips say monday. then the next day i don't make any and loose 30 and still quit as i would have still have the extra 30 for the day before.

[kraven]

http://i1040.photobucket.com/albums/b404/kraven1_photos/v.gif

[kraven]

wwwwaaaahhhhhaayyyyy. above was my trade today. what a hassel.

[kraven]

below is how i trade the news candle. it also explains the SL and TP strategy

 

%5Bimg%5Dhttp%3A//i1040.photobucket.com/albums/b404/kraven1_photos/v-1.gif[/img]

[kraven]

if there's any questions about pic's i'll be back later tonight.

 

it's pretty obvious the market needs time to digest the bank solvency news. on bloomberg many are argueing about the results being released after the European markets are close, they think it's a bad idea as it give traders and news agencies a chance to mull over the numbers over the weekend. if they don't like them it could be a blood bath for the Euro/GBP on monday, if all is good then a nice rally me thinks.

As there's no news on Monday morning a 8:15 breakout might be good. the extra 15mins will give a bit of time to see what the UK market plans on doing.

[pauli79]

Hey guys it looks like hard work trying to download screenshots onto here.

Anyhow Kraven the charts are great and easy to follow what you've done cheers.

I now need to read Easynewstrader again and understand it a little more too.

How profitable did you say it was Kraven as you have been using it a while.Whats %age winning trades etc.

[freddy]

if there's any questions about pic's i'll be back later tonight.

 

Hi Kraven,

 

I've been reading this thread with pleasure, thanks to you and Freddie to start it,

I usually avoid news time, but your approach appears to be safer than usual, and I will try it.

 

 

Question:

About your Buy Stop Entry, is it 2pips + spread?

and don't you think a 10 pips Stop seems little, (today it was without retrace), but sometimes price can go back and forth very sharp before going in the right direction?

 

Thanks again.

F.

[kraven]

pauli i realy couldn't give you a percentage answer, but it's good enough to keep using it to trade. It's also less subjective, you know when to enter and if you can control yourself and not be greedy you'll know when to exit (i sometimes struggle with this like today)

 

freddie my broker is 2pips which i try not to think about. i get in 2pips above candle, if i can exit with 32pips i'm happy (gives me 30pips profit). I always try to add the spread when exiting, i don't think about when entering.

 

Yes 10 pips isn't much. And as i've mentioned before is subject to change, why? the market reaction is nearly always predictable to very good news and very bad news. like this morning. however if you have a big news candle (say 40pips) we may get some retracement but you know following that will be a steady rise. today i believe the market would have risen further but after news the market only had room for another 70pips then it was well above daily average (something to be aware of).in this senario i'd be looking at the bottom of the candle as SL.

When i feel the news was ok i may give it 20pips SL

if i'm unsure how the market will react i'll give it 10pips

 

just to give an idea:

12th 9:30 UK GDP (ok) this is a good example as to why we go in a couple of pips after news bar closes. news bar was down, next bar moved down 1 and shot back up past top of news bar activating our buy. SL10 would have worked, price went 100+pips up

 

13th 9:30 consumer price (Good) SL10 would have worked, price went 120+pips up

 

14th some data market all over the place

 

15th 1:30 US PPI, dips after entry by 17pips, price goes 100+pips

 

16th 1:30 US CPI + other data (mixed) price breaks 5pips above news candle then heads down (touchy one but we lose). it breaks lower candle (we re-enter) and heads down 90pips

 

20th 9:30 UK morgage approval/sector borrowing, it breaks lower candle (we enter) and heads down 68pips

 

22nd 9:30 retail sales, SL10 would have worked, price went 50+pips up

 

today 9:30 GDP, SL10 would have worked (it pulled back 9-10pips), price went 45+pips up

 

a 10-20pip SL is often the max you need. i exit manualy but i always enter 50pips SL incase of a blip (internet goes down or a trader sell trillions instead of billions)

Edited July 23, 2010 by kraven

[Yorgo]

Very interesting this thread, so look my trade

Trade : buy Gbp Usd At 1.52765 Sl = 1.52578 Tp = 1.54450

Profit 168 pips because my broker use 4 numbers

Entry at red line exit at blue line see the graph.

 

http://img827.imageshack.us/img827/9899/exbreakout.jpg

[kraven]

Hey Kraven I normally start around 6 am ish UK time and go on until I'm fed up of bagging all the pips so Im normally around.I only look at the forum ad hoc though during the day and when I know I have time to do stuff.I`m always around at some point however.

How about you...you have a pip quota of 30 pips I think you said and then you pack in?I should get more like that.

 

Pauli as you start earlier then me you may find this interesting. Basicaly you mark the high and low of the 6am candle, then drop to 5min tf. when a full 5min closes above/below 6am candle high/low you enter. it's good for catching the Frankfurt open. there's a strategy based on this somewhere on the net, but what it doesn't tell you is to get-out at 8am or as soon as a candle goes in oppersite direction after 8am. I've seen the london open reverse the Frankfurt open many times. i tried this in the past with decent/mixed results.

 

I've also been mucking around with a weekly one, i take ten pair. I get the weekly candle and find the high and low and put buy/sell orders at the top and bottom (give 5pips). SL is 20 TP 50. this way you can have 5 loses and 2 win and be BE. i let them run and check them following weekend to see results and to do it again for next week (i'll do this tommorrow). last week was a winner, this week a looser(6 loses, 2 wins = -20). Beauty of this it takes 20mins on the weekend only.

[kraven]

charts a bit cluttered and small Yorgo, make it hard to workout. looks like your using a box breakout? Where you using a breakout time range (say 10pm till 10am)? Also one before US open?

[Yorgo]

Not chuttured for me, i know that i do, so i use two box breakout, Breakout London session and Breakout New York session.

I trade only between both sessions or before two hours ending Asian session.

The others indicators for survey my trade or if i want to do a pyramid system if i want more pips.

My guppy's indicate the way and advertise a reversal tendance, Trix will confirm it with tudorgirl etc ....

Edited July 24, 2010 by Yorgo

[Freddie]

I've seen the london open reverse the Frankfurt open many times. i tried this in the past with decent/mixed results.

 

I have heard about this before: I heard "Frankfurt shows the way" and " London will often reverse what Frankfurt does".

It is good to have such useful knowledge!!

 

I shall certainly look at your early morning strategy, getting out by eight though. When I am in Malaysia it is around my lunch time so useful to me. Thanks, Kraven.

 

Freddie

[German]

Pauli as you start earlier then me you may find this interesting. Basicaly you mark the high and low of the 6am candle, then drop to 5min tf. when a full 5min closes above/below 6am candle high/low you enter. it's good for catching the Frankfurt open. there's a strategy based on this somewhere on the net, but what it doesn't tell you is to get-out at 8am or as soon as a candle goes in oppersite direction after 8am. I've seen the london open reverse the Frankfurt open many times. i tried this in the past with decent/mixed results.

 

I've also been mucking around with a weekly one, i take ten pair. I get the weekly candle and find the high and low and put buy/sell orders at the top and bottom (give 5pips). SL is 20 TP 50. this way you can have 5 loses and 2 win and be BE. i let them run and check them following weekend to see results and to do it again for next week (i'll do this tommorrow). last week was a winner, this week a looser(6 loses, 2 wins = -20). Beauty of this it takes 20mins on the weekend only.

 

Correct in your statement , The system or idea was first called the "Big Ben Trade" back about 4 years ago and there is lots of info on the net. You are also correct about the fact that when London comes on line if there has been a big move at the start of the Frankfurt open, and the move has gotten either into the "oversold or overbought area" that London session willl at the very least reverse the move AKA: retracement, or even change the trena altogether. How these seller keep fooling some new traders into buying worthless BS , is still a mystery to me.

[john225]

Kraven where can i find the news trading breakout system?

[Freddie]

Kraven where can i find the news trading breakout system?

 

The system is 'easy news trader' by Dean Saunders. A search will find it on this site. To save you the trouble, since I am checking it as well, just follow Kraven's directions as in this thread.

 

Found the download:

 

Code: http://rs28tg.rapidshare.com/files/136768105/3703093/Easynewstrader.pdf

 

Freddie

Edited July 25, 2010 by Freddie
link

[Freddie]

... How these seller keep fooling some new traders into buying worthless BS , is still a mystery to me.

 

I was OK with your post up until the above bit, then you lost me. What is it that the sellers are selling us?

 

Thank you,

 

Freddie

[pauli79]

Pauli as you start earlier then me you may find this interesting. Basicaly you mark the high and low of the 6am candle, then drop to 5min tf. when a full 5min closes above/below 6am candle high/low you enter. it's good for catching the Frankfurt open. there's a strategy based on this somewhere on the net, but what it doesn't tell you is to get-out at 8am or as soon as a candle goes in oppersite direction after 8am. I've seen the london open reverse the Frankfurt open many times. i tried this in the past with decent/mixed results.

 

I've also been mucking around with a weekly one, i take ten pair. I get the weekly candle and find the high and low and put buy/sell orders at the top and bottom (give 5pips). SL is 20 TP 50. this way you can have 5 loses and 2 win and be BE. i let them run and check them following weekend to see results and to do it again for next week (i'll do this tommorrow). last week was a winner, this week a looser(6 loses, 2 wins = -20). Beauty of this it takes 20mins on the weekend only.

 

Hi Kraven.When you say 6 am candle do you mean the price at 6 am open UK time equiv. to 7 am Frankfurt opening.

[iwjw]

Maybe I could find the answer to my question by going through all posts again, but:

The 9:30 candle...are we always talking about 9:30 GMT or are we talking about 9:30 London what would be 8:30 GMT during DST

I think it should be the latter

thanks in advance