Daily break strategy

[k_minos]

Hi all,

I have been following this for a week now and it looks that it gives good results.

all credits to Basber at the FF thread link is http://www.forexfactory.com/showthread.php?t=362038

This is how he describes the system.

"System Properties :

Set your fibonacci levels and descriptions like this :

Level ----- Description
0 --------- Entry (%$)
1 --------- Entry (%$)
-0.5 ------ TP2 (%$)
1.5 ------- TP2 (%$)
0.236 ----- SL (%$)
0.764 ----- SL (%$)
1.25 ------ BE (%$)
-0.25 ----- BE (%$)
0.5 ------- BE (%$)

Now, adjust fibonacci between high and low of the previous day. As you know previous day will differ on different brokers. 00:00 GMT is recommended, but I use GMT - 1 for my calculations because of my broker time. It's not that different from 00:00 GMT. For better view, you can draw fibo on M15 TF, but it doesn't make any different on how you trade.



How To Trade :

Now that you know how to detect previous day High and Low, let's get down to how to trade this :

We have two types of entries on this method that, First one and Second one. I will discuss the idea behind it after I told you what are they.

First Entry : Buy 3 pips above the High of previous day (Entry on fibo lines), SL is 1 pip below "SL" line on you fibonacci tool. We have 2 TPs. One is when price reaches "BE" line above the high of the previous day (1.25 fibonacci or -0.25 fibo, depends how you draw the fibo.), then you should close half and put your SL at BE (Bring your SL on your entry point - No risk from here). You second TP is "TP2" line on your fibo tool. Vice versa for short entry.

Second Entry : When you enter long (After entry triggered), you should place a sell order right where your SL is. SL for your sell order is 1 pip above the previous day high and TP1 (and of course BE (Break Even) Point) is 0.5 on fibo which is shown is "BE" on you fibo between two "SL"s. TP2 is 1 pip above the "SL" for short entry. You must erase the order IF price reaches TP2. Vice versa for short entry.


** You must cancel all your orders when current day comes to an end and place new orders due to current day's high and low.

** Avoid gaps. It means don't place orders on friday High/Low if you broker slip the entries due to gap. I will place the orders on the first trading hours of the new week for monday if the gap didn't break the high or low, not on friday night. If it's broken, then there is no orders for me on monday.

** I will not trade if the range is above 170 in previous day because of overbought and oversold issues.

** If you have sunday on you chart, combine sunday and monday. It means if sunday have a lower low than monday's low, then the low for setting orders for tuesday will be sunday's low, not monday. Vice versa for highs.

** If your trades continues to next day, don't change anything. Stick to last day's strategy, and also place new day's order along with your open positions."

and the following is the idea behind the strategy and the pros and cons

"The Idea behind it :

As you may know, Daily High and Low plays an important role on technical analysis for short-term and medium-term traders. So break of this levels may reach targets. But if the price didn't reach final TP (TP2), then we can consider a false break and reverse our position even if price reaches BE point after breaking the previous day's high or low. But if price reaches TP2, then we will consider it a true break, that's why I told you to remove your "Second Entry" order when price reaches TP2, no matter that you are in the trade or not.



Pros and Cons :

Pros :
** No need to be high skilled trader to understand and trade this method.
** Maximum of 7% drawdown from 2011 till now and happend just once.
** When price reaches TP2, your profit covers a little more that 1 loss. (Sharpe Ratio > 1)
** You can personalize TPs to fit you own personality.
** Very clear method. No self-judgement involved.
** Easy backtest.
** You have one trade per day in average, so if you're greedy in taking trades, you'll be satisfied.


Cons:
** Limited Profit in main form.
** May forgot to place "Second Entry" orders is not at pc. (Will be solved with an EA)
** Gaps (More smaller the gap your broker provides, the better the results.)"

An EA has not been ceated to trade this nor I could find one anyware that will place the secondary trade in the chart.

I will be posting my daily trades here

Many thanks

Minos

[kelisa]

Minos?

I also trade daily breakout for gold.

[k_minos]

Minos?

I also trade daily breakout for gold.

I haven't try gold, I only do it on EU and on demo to see if it produce any results.

How do you find trading brek out =s for gold?

[k_minos]

Hi all,

I will start fresh this week, apologies for not posting but I was trying to semi automate the trading unfortunatly unsuccesfully. See the image of how the trade should have been today.

[4xPIPAHOLIC]

What happened? No results....? No posts? Where is everyone?