169# 10 pips a day
Simple Breakout System
Submit by Janus Trader (Writtten by Garbonzo) 02/01/2012
This is an extremely simple
breakout system and it works as
If previous day high is exceeded by 3 pips + spread = buy TP = 5 pips SL = 10 pips
If previous day low is exceeded by 3 pips + spread = sell TP= 5pips SL = 10 pips
Works on the principle that once a breakout occurs,its most likely to travel quite a bit in the direction of the breakout due to the sudden surge of market orders and other entry orders pilled up at these levels.
5 pips is conservative,the price may and does travel much further but this is a
very easy way to make consistent profits - almost every day.
Due to the tight stops I use extreme amounts of leverage,I risk as much as 5% of my account per trade
So every trade we take has a positive expectancy to earn us 3 pips.
This includes the spread because your numbers indicate price fails to travel by 10 pips about 14% of the time while our profit target is only 5 pips so your choice of using 10 pips actually means that its slightly better than 86%.
EUR/USD 5 TP - 15 SL
AUD/USD 5 TP - 15 SL
USD/JPY 5 TP - 15 SL
GBP/USD 5 TP - 15 SL
USD/CHF 5 TP-15 SL
In the picture 10 pips trading system in action.
Share your opinion, can help everyone to understand the forex strategy.