Breakout Deviation Level 20 Pip System


#1

After watching this video about Darrell absolutely killing it, Mike gave me an idea of this system. I modified the entry and limit and this is what i came up.

A KISS (Keep It Simple Stupid) trading system of 20 pip stop/profit. Your welcome to post you opinion or help me test it out.

Rules:

  • One trade per day winner or loser (+/- 20 pips)
  • Submit signal after 9 PM ET
  • Sleep while you make your money work

Entry:

  • Create an OCO order everyday on the 0.5 deviation level (BUY) and the -0.5 deviation level (SELL) with a 20 pip stop and a 20 pip limit so that when one get executed the other one cancels.

Pros:

Cons:

  • 20 pips to small stop/limit
  • Breakout strategy will not work all days (Ranging market)

Result:

GBP/USD

(0.5 deviation level) 60% Profitable

  • Week 1(3/13-17): 4/4 (100%)
  • Week 2(3/20-23): 1/3 (33%)
  • Week 3(3/27-4/1): 1/4 (25%)
  • Week 4(4/3-4/8): 5/5 (100%)
  • Week 5(4/10-4/15): 3/5 (60%)
  • Week 6(4/17-4/22): 2/5 (40%)

(0.7 deviation level) 57% Profitable

  • Week 1(3/27-4/1): 2/3 (66%)
  • Week 2(4/3-4/8): 1/5 (20%)
  • Week 3(4/10-4/15): 3/5 (60%)
  • Week 4(4/17-4/22): 4/5 (80%)

Example:

Two trades. One lost, one won.



#2

Nice! Will definitely take a look into that! Keep the posts and charts coming, thanks man!


#3

I tested this on EUR/USD for a month, march 1-24 and it was 50% 7wins/7loses. I wouldn’t do this on days when there is big news. So i excluded the days when the market whipsawed, which i know happens bcus of big news.


#4

February had 12 wins and 3 loses tho. 80%


#5

I have seen that using the 0.7 deviations is more profitable than the 0.5 level when backtracking on some pairs and filters some the ranging days.


#6

Nice work guys! Thank you for the post and thank you for the testing! Keep it up and please keep posting any results you find or different levels that work better on different instruments etc. Thanks…Traders Helping Traders, love the community here that jumps in and does some backtesting