40# Hans123 Breakout Trading System

Submit by Radical (Written by Hans) 04/04/2012



  • Determine the 06.00 CET – 10.00 CET High Low on EUR/USD and GBP/USD

  • Determine the 10.00 CET – 14.00 CET High Low on EUR/USD and GBP/USD

  • Set BuyStop at High + 5 pips and SellStop at Low - 5 pips for both timeframes and both currencies

  • Set Target Price at entry + 80 pips for EUR/USD and entry + 120 pips for GBP/USD

  • Set StopLoss at entry - 50 pips for EUR/USD and entry - 70 pips for GBP/USD. If the other side of the Breakout is within 50 pips for EUR/USD or within 70 pips for GBP/USD then the StopLoss will be that level (Longtrade: SL = Low range - 5 pips = SellStop; Shorttrade: SL = High range + 5 pips = BuyStop)

  • Use a trailing stop of 30 pips for EUR/USD and a trailing stop of 40 pips for GBP/USD

  • At 24.00 CET all orders expiring and close all trades at market. On Friday we do the same at 23.00 CET.

you do wait till 10 am and set the Orders according to the values and then to 2 pm and do the same. In this case you leave the Orders from the first session.

So, it's possible that you during the day have 2 positions in EUR/USD and 2 positions in GBP/USD.

When I speak about a trailing stop, the trade has to be in plus. So on EUR/USD the SL will be moved to breakeven after a gain of 30 pips is reached. After a gain of 40 pips the SL will be moved to +10 pips. The trailing stop works only to the plus side.

I don't cancel orders at 2pm. If there is a false breakout the first trade will be stopped out and the short will be triggered. The maximum number of open trades per currency is two. But it is possible that during the day all (four) orders were executed per currency.


You can also consider to trade USD/JPY and USD/CHF with this system. I think the overall result will improve if you trade the four majors with this system.

I always set BuyStop and SellStop orders. So I take every breakout. Sometimes there is a rebound and you can enter the trade with a better price. But there are always breakouts without a rebound and than you miss some very profitable trades. That's the raison I take every breakout, because you never know which breakout will rebound.



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