Although this is my first post on this forum, I am not completely new. I have been watching, learning and observing for several months while I was getting ready with my trading plans etc. I am new to trading but have gained some knowledge through loads of books and demo trading, and of course many interesting threads here for which I should thank all of you.
I have learnt a great deal from here from some of you. I just left my job , had enough of it and have decided to give it a go with trading forex. I have given myself 6 months to have a reasonable income through trading having strict MM rules and working only on a few strategies which work well for me. I have been working on in for the last months quite consistently.
And hence I started testing some strategies which I found matched the most to my personality. After spending days on many strategies I have come to a conclusion that using too many indicators just does not work for me. Most of them are lagging and eventually having the knowledge of readin PA through charts is probably the best way to make a successful trading career.
And of course there is no holy grail as such as you have to not only find a way which works for you but also you have to master it before you go live. While doing this I came across the London breakout strategy.
I am not sure if someone else has done this the way I did , but the results from Feb to end of july were amazing. My rules were very simple. The result is astonishing. I started testting this on 2nd Feb till end of July. There were good and bad months, but overall it worked out pretty good. Now the way I did was probably more gambling than trading. My point is, that now having the data from the trading , this could be refined and made more profitable I guess. The testing results overall were as follows:.
Days processed Months processed 5. I am also attaching the excel file with each trade. I am going to amend the rules next time and do another one with slightly different approach. I know this is not a new strategy and I also know that this has been discussed many times , but I could not find a thread with proper analysis and actual trade example with statistics of success or failure rates.
I would love to hear some comments, negative or positive about this. I understand very well that past performance is not a gaurantee for future success, I also take into account that when you go live you behave differently and the emotion factor needs to be taken into account.
Also , the news and daily fundamentals. But overall it is quite surprising that just 3 hours work could potentially keep you going.
I look forward to hear from some of the experts, any comments would be highly appreciated. Any twists, turns, amendments to refine this would also be welcome. I am going to start live within a month or so with a k account. If you think I will loose all of it with the above strategy , please let me know LOL.
So I bet your bad months were just before the pound started going up, up and up I dont think I wrote anything to get such a reaction from you fbxnet. I dont understand what upset you so much. Before comparng me with a Monkey, go through the excel file and see the results. You can place the trades as they are and you will get the same.
And I did not make any money on this as this was just a test result. Profits were made both on long and short so GBP going up does not have to do anything with this.
By the way GBP was going up throughout the long term period of the test and on a TF of 15 minutes that does not mean much. This method you're working on is, as you say, well known under different names such as London open, etc.
The technique is based on creating a "box" and then trading the breakouts in either direction from that box. There are as many versions as there are traders is my guess. I'm familiar with this method although work and such make it impossible for me to be present to trade during these hours. Box breakouts offer some of the best risk to reward ratios you can get in trading, so it's definitely a worthwhile trading style.
The beauty is in the details such as close the other when one gets hit? You seem to have put some effort in to this and I assume you've come across this: Otherwise check it out. I think the big dog break out is the major thread but I'm sure it's all worth a read. Thanks for posting your system.
Can I just say it's nice to read a post where someone explained their system in a way which:. But really, thanks for posting the system. I've been checking out several different systems like this one. I'll keep yours in mind. Thank you very much indeed for the reply, I will go through the threads you mentioned and try to adapt and fine tune into my way.
Thanks for the comments. Please be aware that this is still not a system. This was just a raw experiment to see what happens if we take out the "when x crosses y, enter" kind of rules. I posted the thread as I was amazed by the result and the simplicity of it. At this stage it would be dangerous to jump in live. I am now analysing the data from the six months and getting other kind of reports which will hopefully help me fine tune the system in my way.
Monday Tuesday Wednesday Thursday Friday Additionally , I want to go back and see what happened when I bought on resistance and sold on support, what was the trend on higher TF charts , 60 min and 4H, and whether or not the profit was made in the direction of the trend, if yes how many times etc.
This and hopefully some more information from fellow members would help me to formulate a strategy which will suit my needs. The profits were fairly higher than the risk taken, however there were too many trades which resulted in a loss, and this is what needs attention. To minimize it even further. That was what I was looking comments on and that was the whole idea behind this thread. I am now working on another test from Jan to Aug , so 8 months, trying to add a few more things which will come out of the analysis from the first one.
I am curious to see if Monday was your most successful day and how the other days pan out in consistency. Why don't you continue with this thread? It seems interesting to me. Are you still trading this system today? Appreciate your reply and Happy Trading always veryspecial1.
This is one of the best methods I ever trade, but my version is pinned on Newyork open, which overlaps the London session to create the highest volume in the day. I never really made money until I switched off ALL indicators - now that I learned to do without them I can use any without getting lost.
Tell me you spat on your boss's desk and told him the truth? Keep yo head up! Yea, I'd agree; this sort of "break out" strategy was one of the profitable methods that I used during my earlier months. However, based on your statement, I believe you are under EST? Because I am, and I've always wanted to modify the London Breakout Strategy in some ways that would allow me to trade more efficiently with more profit. Mine wasn't as elaborate:.
Set profit target at major fib levels mostly When trend is reversing or when a price reveral pattern that runs counter to my trade is detected. In some rare cases where my trade was open until NY closing, I've exited with small profit. I got the method s from around too. Basically relies on volume increasing during the peak market monemts - so I switch on 'volumes' see mt4 preferably h1 timeframe; see how the three peaks in volume are such that gmt is Asian high more evident for EY, it never stops for the night , then London Open, then the highest at London - New York overlap which is the highest.
Someone really geek over at FF called this overlap The London Rush as the name for her very briliant method Try to observe how during these peaks price makes its largest moves.
EY is slow and steady while GY does those breakouts. The volume thing is clockwork - if nothing happens, still the longest candles ride the larger volume monents. Something with 30 minutes before London or New York opens, volatility increases sharply. My current favourite rendition is the volume pattern on h4 frame? PA on h4 and above is more reliable and hiding stops two or so bars behind price in steady trend works well here than on h1.
If a h1 bar starts to pull a very fast one on me on peak volume, or it closes with the volume peak pointing in the wrong direction, then I jump out to regroup at a better position' or invert hurriedly depending on the momentum.
Other dynamics and considerations will be involved but that gives an added edge. Mechanical entry and exit is best with this method, though experienced discretion is aquired soon afterwards. Nowadays I base my trading on other mainstream methods, but I can still swear by the London-Rush phenomenon. Free Forex Trading Systems. Hi everyone Although this is my first post on this forum, I am not completely new.More...