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Simple morning hours breakout system - forward test $1000 => ? (Simple morning hours breakout system - f)

author EAcpu | 2 reads | 0 comments |
Hey, Happy New Year 2016!

In this article I would like to introduce and forward test an extremely simple breakout method where I take 30 minute candles from 9:00-9:30 (CET => GMT+1) and place Stop Buy and Stop Sell orders above and below. That's it. The trading pairs are EUR/USD and GBP/JPY…

Well, here are the more readable rules:

  1. Trading currency pairs: EUR/USD and GBP/JPY.
  2. Select a 30m candle from 9:00-9:30 (CET => GMT+1) and place two stop-loss buy orders above this candle and two stop-loss sell orders below this candle (risk 0.5% each).
  3. Stop loss is 90% of the candle size of all orders.
  4. One of the orders had a price target of 100% of the candle size, and the other order had no price target (let it run).
  5. Order duration is 1 day.
  6. Once the buy or sell order is filled, place another buy order 1/2 below the entry point. The settings for SL and TP are the same. The reason for this is to add to the position on the initial pullback.
  7. If a target is reached, the opposite order is cleared.


The idea behind this is to take advantage of the usual volatility in the early hours of the European trading session.

I'll see some example transactions later. The initial risk per trade is 1.5%.

cheers!

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