Weekly Gbpjpy Breakout System - MT4/MT5 Resources

Hi everyone...I've been working on a weekly breakout system for a while now...just completed 1 year of manual backtesting so I can share it now...
Basically, we take the last 2 candles on last week's 4-hour chart as the breakout boundary.
Either way you can enter during the break...
Stop loss target profit 2x stop loss on breakout...
When the price hits the stop loss somehow, we add target profit x3 to the stop loss in reverse...
No trailing stop...
Transaction ends with sl -tp or weekend...
The 1-year result is a monthly average of 714 points...
Attached spreadsheet and chart...
Good luck
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Optimization of Bigricky
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Hi guys,
Have been following this system with great interest. I'm relatively new to Forex and am looking for a mechanical type system. I spent the better part of the weekend back-testing this system, and although the results looked promising as I applied the system and worked my way through each trade, unfortunately, it didn't look like it would fit the way I traded in 2005 and 2006. Before I continue, I just want to say that I'm new to this and there's always the chance that my backtests are flawed in some way.
I have attached a spreadsheet and MT4 template to show the setup for each trade.

I tried both systems side by side. I've used Harold's Rules.

System 1 - Profit on the 1x channel.
Use 2 bar, then back to 3 bar. If the channel is less than 100 points. Create a 100-point channel.

Add 7 pips to the upper level of the channel (spread allowed).
Buy and sell stop orders are placed 3 pips outside the upper and lower channel lines in order to actually break out of the channel before entering.
The stop loss level is also again set 3 points outside the channel to allow the channel to actually be breached before being stopped out.
Take profit on the 1x channel band.

Gaps - Ignore smaller gaps - less than 20 pips. ) for larger gaps if the gap is filled within the channel trade as normal. If the gap is outside the channel, do not take the trade. If the price returns to the channel and closes the gap, trade as normal. (I actually backtested ignoring the gap vs. waiting for the gap to close, and it didn't have much of an impact on the bottom line)

If the first trade goes through, that's it for the week.
If the first trade fails, a trade in the opposite direction is made after the trigger.

System 2 - Take profit at the 2x channel.
Same as above, but take profit on 2 x channel bands.

risk

The risk per trade is 1% of the account (compounded).
I find that system profitability is sometimes measured in points rather than account returns. I'm still trying to figure out how to accurately measure profitability. (Remember, I'm still a newbie).
For me, I only risk a certain % on each trade. Regardless of whether the channel width is 100 pips or 400 pips, the risk is still 1%. This means that some pips will be worth $1 (100 pip chan) or 25 cents (400 pip chan). Again, if I'm missing something here, I'd appreciate someone more experienced pointing me in the right direction.

I also deduct a 5% discount from profitable transactions. This is to allow for 3 point buffers on either side of the channel. (Probably more like 3%, but I like to think of worst case scenarios)

result

System 1 - Profit on the 1x channel.

2005 - Account return rate was 7.95%
2006 - Account return rate was 9.62%

System 2 - Take profit at the 2x channel.

2005 - Account return was 8.78%
2006 - Account return was 2.04%

2007 (2% risk per trade - compounded)
1x chan T/P (1x for second trade) 46.09%
2x chan T/P (2x on second trade) 65.21%
2x chan T/P (3x on second trade) 47.16%