Breakout - 15 Minutes a day - 10-20 pips - Every day - 95% profitable trades

[Bigtent]

Has anyone tried using much larger gains and stoplosses. Like 50 pips for each. Although not ideal, as a starting point this could prove quite useful to see if you can actually make money from bigger swings. These are obviously dependant on which pairs you're trading. I had a look at cable, and AUDJPY and both seem to have potential. This is taking into account intraday whipsaws too.

My EA has the ability to change TP/SL to whatever you want.

 

[captaincol]

My EA has the ability to change TP/SL to whatever you want.

Hey BigTent, If you wouldn't mind giving the AUDJPY pair a run through, or 50 sl and 50 tp. How long does it take to run? And what software do you use?
Cheers

 

[Bigtent]

Hey BigTent, If you wouldn't mind giving the AUDJPY pair a run through, or 50 sl and 50 tp. How long does it take to run? And what software do you use?
Cheers

Just Metatrader4.

Save the attached filed under C:\ProgramFiles\<your metatrader directory>/experts and restart Metatrader and you will see it under Expert Advisors in the Navigator.

You can then open up the Strategy tester and play with it all you like on any pair/timeframe/period whatever.

 

[captaincol]

Just Metatrader4.

Save the attached filed under C:\ProgramFiles\<your metatrader directory>/experts and restart Metatrader and you will see it under Expert Advisors in the Navigator.

You can then open up the Strategy tester and play with it all you like on any pair/timeframe/period whatever.

Excellent. Thanks Big Tent, i'll let you know my results.

 

[Da.DesiTrader]

How did this one go?

 

[captaincol]

Sorry I've been really slack at back testing. I just noticed ODL have stopped giving me free data on my demo account. Anyone know someone else good to use?

 

[captaincol]

The stats come out pretty mixed, certain pairs trend straight up, others go straight down. I was using mainly a 50pt SL and 50pt TP, which would indicated that for sme pairs you could reverse the trading strategy and buy on the break of the previous day low, and sell on the break of the previous day high.

 

[captaincol]

AUDUSD SL 30 TP 50. An intersting result, masses of profitable trades, but also masses of losses. I'm not sure this is a viable technique.



Bars in test 2600
Ticks modelled 15015999
Modelling quality n/a
Mismatched charts errors 9886
Initial deposit 10000.00
Total net profit 31922.60
Gross profit 318288.20
Gross loss -286365.60
Profit factor 1.11
Expected payoff 15.42
Absolute drawdown 9755.80
Maximal drawdown 17969.80 (98.66%)
Relative drawdown 98.66% (17969.80)
Total trades 2070
Short positions (won %) 928 (29.63%)
Long positions (won %) 1142 (31.44%)
Profit trades (% of total) 634 (30.63%)
Loss trades (% of total) 1436 (69.37%)
Largest
profit trade 589.60
loss trade -252.80
Average
profit trade 502.03
loss trade -199.42
Maximum
consecutive wins (profit in money) 6 (3051.20)
consecutive losses (loss in money) 23 (-4576.00)
Maximal
consecutive profit (count of wins) 3051.20 (6)
consecutive loss (count of losses) -4576.00 (23)
Average
consecutive wins 2
consecutive losses 4

 

[puregold24carat]

This is sadly going to fall apart when you try to trade it live.

 

[wackypete2]

Nothing wrong with the logic here since you are building on momentum, but with most methods you need some sort of filter. For starters try taking longs only when above the 50ma and sorts only when below the 50ma. Also I wouldn't take the same direction trades for more than 3 consecutive days. Just throwing out ideas here. Maybe someone could add code to Bigtent's ea and test different types of filters.

Peter

 

[fayalac]

5 pips?, work with London or New York Markets and it could take some minutes to make that!.

This is an extremely simple breakout system and it works as follows:

If previous day high is exceeded by 3 pips + spread = buy TP = 5 pips SL = 10 pips
If previous day low is exceeded by 3 pips + spread = sell TP= 5pips SL = 10 pips

Works on the principle that once a breakout occurs,its most likely to travel quite a bit in the direction of the breakout due to the sudden surge of market orders and other entry orders pilled up at these levels.
5 pips is conservative,the price may and does travel much further but this is a very easy way to make consistent profits - almost every day.
Due to the tight stops I use extreme amounts of leverage,I risk as much as 5% of my account per trade.

Stick to the pairs with the lowest spreads for obvious reasons.

Happy piping!

 

[Da.DesiTrader]

Try 120 t/p with 40 s/l at a break of 20 points on gbp/jpy. Surprisingly 100% annual return for past 3 yrs.

 

[martinii]

Hi everyone

Could you please tell me what time frames the systen is traded on?

 

[captaincol]

Try 120 t/p with 40 s/l at a break of 20 points on gbp/jpy. Surprisingly 100% annual return for past 3 yrs.

break of what? previous days high/low?

 

[NVP]

Yes,but when probability is on your side and when you are "diversified" on 4 pairs its not really such a great issue.
Sure,you could get a day where all 4 pairs go against you and you lose 40 pips and you get a margin call or you get wiped out.
I rarely trade to the hilt with 50 lots but I am just saying,since the odds are stacked so much in your favor you can afford to take allot of risk to.
I rarely trade with such large positions but I was just giving it to you for illustration purposes,trying to make you realize that when 5 pips is "certain" its not that bad at all,you can make a real living out of it - that's what I do.
I am sorry If I offended you.

*Hugs elefteros*

Btw,eisai ellinas?

Hi all

sorry couldnt resist a comment............anyone want to talk about how/why these particular "diversified" Pairs were chosen.....I might be able to add a little to the debate there....

N

 

[Christiaan]

i think it is brilliant yet so obviose.I have been collecting stats on the 2 day breakout system and and was not that impressed,but I have seen enough to know that this system will work.Because of the small stop-loss and high accuracy rate you can use high leverage.

You can even use it with while trading another system.In a industry where most of us fail this system can be my safety net as well a guaranteed way to make money while I get my foot in the door.

here is another though imagine that you have a manual system let's say you risk 50 pips and tp at 30.Now your risk only 1% of you capital.Because this other system has a smaller stoploss your dollar value per pip will will be much higher.So you still only risk 1% capital but here is the diffrence your %winning trades will be much higher let say 10% higher .Then you should make more money,i don't know the exact numbers but it's a good thought right?

thanks a lot!!

 

[Da.DesiTrader]

If you back test this over a number of pairs. Even with daily period bars, its a loser. Let alone on 5M bars. Too small a range to trade its breakout perhaps, secondly the larger range breakouts tend to be fake outs more often, unless you are going at a higher pip padding level but then screws up your risk/reward. I wish if making few pips every day was that easy.

 

[Clarkie73]

Is this system traded in the London session?



Breakout - 15 Minutes a day - 10-20 pips - Every day - 95% profitable trades


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This is an extremely simple breakout system and it works as follows:

If previous day high is exceeded by 3 pips + spread = buy TP = 5 pips SL = 10 pips
If previous day low is exceeded by 3 pips + spread = sell TP= 5pips SL = 10 pips

Works on the principle that once a breakout occurs,its most likely to travel quite a bit in the direction of the breakout due to the sudden surge of market orders and other entry orders pilled up at these levels.
5 pips is conservative,the price may and does travel much further but this is a very easy way to make consistent profits - almost every day.
Due to the tight stops I use extreme amounts of leverage,I risk as much as 5% of my account per trade.

Stick to the pairs with the lowest spreads for obvious reasons.

 

[TraderNumber7]

Newbies,

Don't let failure or the negativity of others stop you from continuing your creative thought. Yes, over the longer term, simple break-out systems of the previous High and Low, won't have enough accuracy to be considered a high-powered trading methodology. However, that's not important. What's important here, is that as a Newbie you don't get discouraged and prevented from more creating thinking. At least the OP was hunting for ideas and that's the most important ingredient of all for lasting, long-term success as a Trader. Now, here is a way to turbo-charge your simple break-out methodology.

There are other price levels on the Daily Bar that can be used with very high levels of accuracy, for simply break-out trading. It does NOT have to be the previous High and the previous Low. Think creatively about "price" itself and derive other, non-high and non-low break-out levels of the previous bar to use. They are there, use your imagination to find them. Could it be a level between other levels??? Use your imagination to set the level and then test it.

Lastly, does your break-out level always have to be a price level at all? Can it be something other than Price? Could it be an Indicator Level instead of Price itself? Hmmmmm. Could it be the Peaks of something as simple as the ADX +DI and -DI, for example? What settings would you have to use in the ADX to derive a +DI and a -DI that gave you reliable break-out performance, now that you know can trade the break of something other than Price itself?

If you can trade the Upside Peak of an Indicator level, can you also trade the inverse troughs of that same Indicator? Price MUST move! Trading Rules 101. If Price stops moving vertically, then game over for all of us, because that would mean that all volatility has left the building. So, *SMART* break-out Traders use pairs that have high volatility ratings, which can always been seen using your basic ATR for starters. An even *SMARTER* Trader just might load the ADX on that pair with high daily volatility (high ATR) and take a close look at the behavior of the +DI and -DI lines.

If a Newbie wanted to AND was creative enough, he or she could make a living from the ADX alone. Hands down - just trading the Break-Out NOT of Price, but of specific levels of both the +DI and -DI.

This is why I like these kinds of posts from Traders and why I love trading in general. You can take a very simplistic concept like trading the break of "price" and ultimately learn that "price" is not the only game in town when it comes to trading the "Break."

That's a little insider tip from the world of hard-knocks and experience. May the savvy enjoy what's been given to them and my the wise seek the treasure of what's remained unspoken, yet appears so vividly on the surface.

For those with ears to hear, eyes to see and the creativity to bring it all together.

Remember: "Price" consolidation is one thing, while "Indicator" consolidation can take your trading to another level. It is a very stealthy way to trade, if done correctly. Do your OWN homework.

 

[SA Trader]

This is an extremely simple breakout system and it works as follows:

If previous day high is exceeded by 3 pips + spread = buy TP = 5 pips SL = 10 pips
If previous day low is exceeded by 3 pips + spread = sell TP= 5pips SL = 10 pips

Works on the principle that once a breakout occurs,its most likely to travel quite a bit in the direction of the breakout due to the sudden surge of market orders and other entry orders pilled up at these levels.
5 pips is conservative,the price may and does travel much further but this is a very easy way to make consistent profits - almost every day.
Due to the tight stops I use extreme amounts of leverage,I risk as much as 5% of my account per trade.

Stick to the pairs with the lowest spreads for obvious reasons.

Happy piping!

hi there,
I like the sound of your system, but at what time do you check on the price level - is there a certain time every day that you make this call ?
Thanks