Best Thread GBP/USD Breakout

[Paulie_5]

Hi Claudia,

First post on this thread, thanks very much for sharing.

Out of interest, if you had traded the 7am signal today (and therefore incurred a 20 pip loss), would you then have traded the break to the downside ?

Or once stopped out, do you just leave it for the day ?

And just a comment that will perhaps help others out (which took me a couple of reads of the thread to understand) ....

You say that you ignore spikes. Many would take a spike to mean an extreme price movement which results in a very long upper or lower shadow.

To clarify this, you ignore all shadows .... ie you take into account just the body of the candle (open/close), when working out your range.

This wasn't that clear to me at first, but that could just be me .....

Good luck with this for 2010, I'll be watching closely !

Paulie

 

[Shikamaroo]

changed my mind. i took the short to help the market get to line 2. i connected the two recently established highs. there is also confluence with the 50 ema on the 5 min chart

 

[ez0770]

I put a bit of breathing space in the entries, usually 5-10 pips, so +25 pips for me this morning.

well done. I also "filtered" the first break out and manage to take 26 out of the market today. The way I went about it is I waited for a reversal after 3 green candles before putting my buy/sell stop orders in

 

[neil]

Yes be interested to hear about that. I was in the cot so..

I will be trading next week but thought I would put this chart up from IG....the 6am and 7am bar highs were close enough to be a double top...hence the real breakout for a short (The spread would have stopped you from going long?)

 

[Crawsthorne]

I will be trading next week but thought I would put this chart up from IG....the 6am and 7am bar highs were close enough to be a double top...hence the real breakout for a short (The spread would have stopped you from going long?)

That is true, but I don't think it is the case for Claudia's rules. The IG mid-price for the close of the 6am which was the highest bar and therefore the trigger was 51.6 and the mid-price high of the 7am bar was 54.2 which is sufficient to trigger as Claudia herself admits, although she missed it and subsequently took the short. I admit here is other evidence that the high would not break, but according to my understanding of the rules, the long was valid.

Charles

 

[foredog]

That is true, but I don't think it is the case for Claudia's rules. The IG mid-price for the close of the 6am which was the highest bar and therefore the trigger was 51.6 and the mid-price high of the 7am bar was 54.2 which is sufficient to trigger as Claudia herself admits, although she missed it and subsequently took the short. I admit here is other evidence that the high would not break, but according to my understanding of the rules, the long was valid.

Charles

I had my order at 58, missed by around 0.2...luckily. When the close of the 6am and the high is only a few ticks different then I'd say its better to go above the high. If it's 15 ticks then there's scope for the trade so go for the lower entry.

 

[mpat89]

anyone short?

 

[bedsit]

Short - as per system. IMO downtrend.
That was a quick 15min loss.
Maybe better tomorrow?

 

[mpat89]

stopped out

 

[Alexbabwa]

I lost 20 pips on the short too. Had my order to sell at 55. Luckily my other order got triggered, In at 992 just got took out at 612 so i guess i break even as i took the spread in to account. First time using this morning breakout strategy, looks promising.

 

[mpat89]

ditto, break even for me too, better then a loss!

 

[bedsit]

Hi guys,
I don't get it - according to system stop loss should be 20 pips.
Unless you have a nice SB company that doesn't want you to suffer any losses, so they come with different prices from the market in order not to upset you.:?:

 

[Paulie_5]

Bedsit - I think they went long on the breakup as well ... so loss for the first trade, profit for the second. Overall break even.

 

[bedsit]

Thanx Paulie,
I thought that as per system you enter only once.

 

[mpat89]

we broke the rules

 

[Paulie_5]

I don't think this has been clarified on this thread - I asked the question in post #767 ....

But I guess the important thing to note is that different people will have different methods -

Claudia enters the trade on the break of the range ignoring shadows/ spikes
Gamma involves fibs and pivot points
Wil68 trades the break of the 6am candle
Some will choose to enter a second trade on the opposite break - some will enter once.

You need to do what works for you ....

But if you want to follow Claudia's exact method who started the thread, then we need to wait for her to clarify.

Although judging by it, she's out shoe shopping ....

 

[Alexbabwa]

Im not trading the exact same as Claudia Bedsit. I allow 10 or so pips slack after the trigger price if i feel it may not go my way, as i did this morning (still got triggered though, might widen it). My long buy wasnt intended directly, i hadnt moved it to the OCO window and forgot about it. I will however trade both ways in future. Stop 20 but will move it to a trailing stop from breakeven. Looking forward to this always exciting to try out new strategies.

 

[gamma]

Breaksouts work better in the direction of the trend.

Over the past couple of days the trend has not been easy to establish

 

[neil]

Short - as per system. IMO downtrend.
That was a quick 15min loss.
Maybe better tomorrow?

What am I doing different ?

 

[bedsit]

Hi Alexbabwa,

I've heard about bracket orders (to have 2 orders on opposite side) and sometimes unlucky traders experience double loss, or if lucky like today break even. I don't know how good is that for GBPUSD and wouldn't do it without research.

As Gamma said, may be good idea to trade on break in the direction of the trend (if possible to see it) and ignore counter trend trades.

About extra pips breathing space could be good, but again - that's not Claudia's system.