4H Box Breakout

Hi, thought I'd share this system:

This system is extremely easy to use and is extremely profitable. I've seen breakout strategies for daily and weekly. I've never seen one like the one i'm about to present.

DRAW a box connecting the high of the first 4hr candle(00:00) EST of the week with the low.
If I had a penny for every time someone has asked which candle it is..i wouldn't need to trade forex to make money. For the next person who is going to ask, follow these instructions.
Open your MT4 platform(i use FXPro). Press Ctrl+y on a 4hr chart. Lines will magically pop up and at the start of every week the first 4hr candle should form on the line. This is the candle you use for the High and Low.

Rules:
- Add a buffer of 10-20 pips on each end of candle
- Buy on upper break of weekly box (including buffer+spread)
- Sell on lower break of weekly box (including buffer)

SL - other side of Box
TP1 - 1x box size
TP2 - 2x box size
TP3 - 3x box size
TP4 - 4x box size

This system works on many JPY pairs.
GBP/JPY
EUR/JPY
AUD/JPY
CHF/JPY
CAD/JPY
May work on other pairs, testing is required however.


I like to use 2x box size as TP but if im around and the price is about to continue on an upward path, i wait for break of TP2 and ride out the profits until i see fit. I don't profits at 1x size of box because larger reward is key.

Advantages
- 30 mins a week
- no worrying about charts filled with indicators
- higher reward than risk on EACH trade
- easy to back test


Feedback would be great from all you FX experts and GOOD LUCK!

Forex = uncertainty

Thats the bottom line. The reason why there are good traders is because they understand the concept of money management. I'm under the impression that you have lost some money on the forex which is perfectly normal, happens to the best of us. This system is 90% mechanical. If you are a beginer than you should leave it like this.

So the question is, how do you know when to use what strategy, or if the strategy is just performing well for the time being. It is difficult to know this and i'll be honest I don't know what time of day its best to scalp, or use a 15 min strategy or many other trading strategies for that matter. What I do know is, is that its all about risk to reward. RISK LESS THAN WHAT YOU CAN MAKE AND ONLY USE 2-3% OF YOU ACCOUNT PER TRADE. Now as starter how do you know where to set the profit? or if its a good idea to set a Stop Loss there or somewhere else.

If you're using a repainting indicator or MACD, or RSI or any of those magical indicators we all found when we started the Forex, it is hard to find where to set the targets. The lines don't tell you where to set anything.

With this system there is a simple box. You place the orders, the SL and TP and go to sleep. Your account will not blow over night because you risk less than you can make.

To break even with the 2x TP, you would need to lose 2 times and win once. 3x TP, lose 3 times and win once to break even. The odds are definitely on our side and thats the best thing to have when you are trading. The Holy Grail of Forex is your High School math class because thats where you learn probability.

Try this if you don't believe me. Chose a position, long or short. Flip a coin, if its heads than you won, tails you lost. Everytime you win add 2 points and everytime you lose subtract 1. Do this 10 times and see were you stand. This is the same concept with the box breakout.

Keep in mind that this strategy also uses logic because we take a position on the break of an important candle of the week. So don't worry we aren't risking our money by flipping coins.

The entry is important. BUT THE EXIT IS MUCH MORE IMPORTANT. This is again the reason why a lot of people fail. Our natural instinct is to ask, "OK, so where do I get in? ". Realize that the exit is more important.

Man you've got a good copy and paste option going on there jahual89

samills70 said:

Man you've got a good copy and paste option going on there jahual89

Click to expand...

Yep, much better thread over at FF!

:clap:

lol

sb

samills70 said:

Man you've got a good copy and paste option going on there jahual89

Click to expand...

There are 2 currency pairs which we will look at for trading; the GBP/JPY and the EUR/JPY, on Capital Spreads charts.



This method is my own interpretation of the very interesting thread on the Forex Factory forum 4H Box Breakout - Forex Factory which i copy and pasted above .



Each week, on the 1 Hour Time Frame, note the high and the low between midnight and 4am on the Monday morning GMT+1. To the High add 10 pips and the spread, to the Low subtract 10 pips and the spread: these are the order levels, or triggers for Buy and Sell trades.



Monitor the charts between 8am and 9am each morning GMT+1. When the price opens within the box marked out by the High and the Low, and moves through a Buy or Sell trigger, take the trade. Do not trade outwith these times.



The Stop Loss should be the other side of the box; for a Buy trade it’s the Low, for a Sell trade, it’s the High. Take Profit is 200 pips. Often the profit can exceed 300 or 400 pips, so if you can monitor the trades move your TP and Stop if you wish, but don’t give up more than 50 pips profit.



That’s all there is to this one. It’s yielded 700+ pips in May and it can be developed from here, but if you stick to trading only the signals between 8am and 9am it will be very productive.

jahual89 said:

Hi, thought I'd share this system:

This system is extremely easy to use and is extremely profitable. I've seen breakout strategies for daily and weekly. I've never seen one like the one i'm about to present.

DRAW a box connecting the high of the first 4hr candle(00:00) EST of the week with the low.
If I had a penny for every time someone has asked which candle it is..i wouldn't need to trade forex to make money. For the next person who is going to ask, follow these instructions.
Open your MT4 platform(i use FXPro). Press Ctrl+y on a 4hr chart. Lines will magically pop up and at the start of every week the first 4hr candle should form on the line. This is the candle you use for the High and Low.

Rules:
- Add a buffer of 10-20 pips on each end of candle
- Buy on upper break of weekly box (including buffer+spread)
- Sell on lower break of weekly box (including buffer)

SL - other side of Box
TP1 - 1x box size
TP2 - 2x box size
TP3 - 3x box size
TP4 - 4x box size

This system works on many JPY pairs.
GBP/JPY
EUR/JPY
AUD/JPY
CHF/JPY
CAD/JPY
May work on other pairs, testing is required however.


I like to use 2x box size as TP but if im around and the price is about to continue on an upward path, i wait for break of TP2 and ride out the profits until i see fit. I don't profits at 1x size of box because larger reward is key.

Advantages
- 30 mins a week
- no worrying about charts filled with indicators
- higher reward than risk on EACH trade
- easy to back test


Feedback would be great from all you FX experts and GOOD LUCK!

Click to expand...

I googled my 4H Box Breakout system. And look what I found, great job Jahual for learning how to copy and paste. It'll really get you far in life. Visit Forexfactory.com to actually read my system.

Ace284 said:

I googled my 4H Box Breakout system. And look what I found, great job Jahual for learning how to copy and paste. It'll really get you far in life. Visit Forexfactory.com to actually read my system.

Click to expand...

this coming from a newbie

jahual89 said:

this coming from a newbie

Click to expand...

Jahual - Ace is not a newbie. He developed the system that you copied and pasted here. You presented it as your own system which is fairly unbelievable. Here's the link to Ace's thread on FF 4H Box Breakout @ Forex Factory
Of course jahual you already have it. But you chose not to post it so people woukd think this is your system.