Very Simple Breakout (into a Trend) Syst
2:1 high/low breakout
The screenshot below shows a very simple system with templates and indicators attached.
1. Trading of any liquid instrument shows a historical trend trend.
2. Select a trigger time range (displayed 1 hour) - draw horizontal lines at the last significant price movement high and low.
3. Wait for a candle to close above/below the last swing high/low per step 2.
4. Sell/buy this candle, it can be closed as long as the following conditions are met:
a. Trend exists within the next 2 time frames... triggered by 1 hour. Indicator (points) showing the relationship of the 12/26/9 MACD signal line to its MA line.
The points in descending order must be;
Downtrend; red, red, green, red or red, red, red, red
Uptrend; green, green, red, green, or green, green, green, green
(i.e. indicating that the MACD signal line of the next time frame (4-hour) has crossed and points in the direction of the expected trend, while the next higher time frame above that time frame (daily) points at least in the direction of the expected trade, if not also crossed below its MA line.
b. The entry point falls within the 20-day average spread range.
Risk = maximum 2% of the account, risk:reward ratio 1:2, i.e. set an oco order - stop loss above the opposite horizontal line, limit order is twice the stop loss.
Trade across multiple instruments (e.g. 5 FX pairs)
* Countdown indicator (attached in zip file) shows the time remaining until the current candle closes.
* Also included here are audible alerts for Cable, Euro, Swiss and Japanese Yen, which can be set horizontally.
*The zip file also contains 15 minute triggering MACD points.
A 33.33% hit rate (winning trades as a percentage of total trades) breaks even.
I plan to demonstrate the system with 5 pairings in January of the new year and will report the results on this thread... feel free to play along.
Platform/Chart = MT4.
http://i41.tinypic.com/ftly86.gif
The screenshot below shows a very simple system with templates and indicators attached.
1. Trading of any liquid instrument shows a historical trend trend.
2. Select a trigger time range (displayed 1 hour) - draw horizontal lines at the last significant price movement high and low.
3. Wait for a candle to close above/below the last swing high/low per step 2.
4. Sell/buy this candle, it can be closed as long as the following conditions are met:
a. Trend exists within the next 2 time frames... triggered by 1 hour. Indicator (points) showing the relationship of the 12/26/9 MACD signal line to its MA line.
The points in descending order must be;
Downtrend; red, red, green, red or red, red, red, red
Uptrend; green, green, red, green, or green, green, green, green
(i.e. indicating that the MACD signal line of the next time frame (4-hour) has crossed and points in the direction of the expected trend, while the next higher time frame above that time frame (daily) points at least in the direction of the expected trade, if not also crossed below its MA line.
b. The entry point falls within the 20-day average spread range.
Risk = maximum 2% of the account, risk:reward ratio 1:2, i.e. set an oco order - stop loss above the opposite horizontal line, limit order is twice the stop loss.
Trade across multiple instruments (e.g. 5 FX pairs)
* Countdown indicator (attached in zip file) shows the time remaining until the current candle closes.
* Also included here are audible alerts for Cable, Euro, Swiss and Japanese Yen, which can be set horizontally.
*The zip file also contains 15 minute triggering MACD points.
A 33.33% hit rate (winning trades as a percentage of total trades) breaks even.
I plan to demonstrate the system with 5 pairings in January of the new year and will report the results on this thread... feel free to play along.
Platform/Chart = MT4.
http://i41.tinypic.com/ftly86.gif
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