Breakout Strategy | MT4 EA Download - MetaTrader 4 Resources

Hi everyone, I've been surfing these forums for a while and have seen some great strategies and some not so great ones. I recently decided to become a member and came up with my strategy and it has helped me a lot.

The best thing about both of my strategies is that they work for people like me who have a job or go to school. The first strategy can be completed in about 30 minutes once a week for a large number of points. The other one takes about 30 minutes max, if you're good at it and how many currencies you use, I'd cut it down to about 15 minutes Monday through Thursday morning. As you noticed I never trade on Fridays, I look at the charts but usually the moves are too slow or unpredictable to trade safely.

4H strategy

The first strategy is by far the simplest and it is the 4 hour breakout. This has been discussed many times in these forums and while they all remain almost unchanged, they are essentially the same.

This strategy should be implemented once a week and then forgotten about. Just set up and place your order on Sunday evening.



So when you look at the screenshot above from my MT4, you will see that the strategy is very simple. It starts every Sunday evening at 00:00 or at the beginning of every week. If you use Metatrader 4, you can just click Ctrl-Y and it will set the lines for you at the start of each week.

You can then draw a line or box the size of the first candle of the week like in the ym screenshot. This will make the low of that candle your sell signal and the high of that candle your buy signal.

Very importantly, I recommend adding a buffer of 5 to 10 pips on the highs and lows so that you are protected against bad signals, as I have seen this happen before, when the price is only 1 or 2 pips below the low or high, opening a trade only to get stopped out when it goes in the opposite direction. Usually after 5 to 10 points, the price will continue to move in this direction.

I usually set my take profit at 75 pips and then set my second price target at 150 pips. This method is very effective and rarely fails. My stop loss is usually 50 pips.

so..

Stop loss 100 pips
T/P1 75 points
T/P2 150 points

I've been trying to track my stops and use different indicators to help me decide when it's better to exit a trade or stay in a trade, but this does require more interaction and deviates from the "set it and forget it" approach that I want.

I will be posting some indicators I have been experimenting with soon to see if they work on the 4H chart. I will also post the results with a trailing stop.

This strategy works or should work on all JPY pairs, but I've only tried four of them: USD/JPY, GBP/JPY, EUR/JPY, CHF/JPY

15 minute strategy

This is my second strategy, and it does involve a lot more interaction than my previous strategy. This is to take advantage of the breakout that occurs from 7am to 9am during the New York breakout period.

This strategy is known on this forum as the "Big Dog Strategy" and if you read these posts you will understand what this strategy means. The New York Stock Exchange opens from 7 a.m. to 9 a.m. ET and the market goes crazy. You will see a lot of price movement during and after this period, and you will take advantage of it.

Check out the screenshot to see how it's set up:



As you can see, setting up this policy is also very simple:

1) Two vertical lines, one at 1100 GMT and 1300 GMT
2) Two horizontal lines, one at the lowest candle line and one at the highest candle line

That's all you have to do, if the price breaks the low line then you sell, if the price breaks the high line then you buy.

That's the essence of this strategy, I've heard of people using Fibonacci lines etc. But I usually aim for 50 pips on my first T/P and 100 pips on my second T/P.

So...

Stop loss 50 pips
T/P1 50 points
T/P2 100 points

I usually just try to get 50 pips and unless I see some really good price movement I might push the T/P higher, but usually I don't see how it moves on the screen so I just say 50 pips is a good amount.

When I first used this strategy I just cut it by 20 points, but only if you want to be really safe. I'm still experimenting with trailing stops and indicators for this strategy and will post them once I have more news.

This strategy works really well for me. It should work on most USD pairs, but I've only used it on four of them: EUR/USD, USD/CHF, USD/CAD, GBP/USD

Here's another screenshot from a week or two ago so you can see how simple and effective this strategy is:



The circle is where you enter the trade. I'll post more screenshots once I have some free time.

Hope this helps everyone, these are two of my favorite strategies so far and I hope some of you like them too.