2# Open Day Trading System
Intraday Breakout Trading System
Submit by Janustrader 02/04/2011
Setup
1. Open a 1 hour chart at 1:59 EST (GMT-5) and identify the high
and low of the 1:00-2:00 EST bar, see the example below:
The system works on the principle that once a breakout occurs (intraday breakout),
the price is most likely to go strongly in the direction of the
intraday breakout due to the market daily activity after 2:00AM EST.
2) Determine the 1:00-2:00AM EST bar high and low:
High and Low 1:00 AM= 1,4172 high and 1,4157 low
The formula is
1:00-2:00AM bar high/low difference = X
In our case high = 15 pips =X
Long Entry Position for intraday breakout:
Place a BUY STOP order at “1:00-2:00AM EST bar HIGH + X”
level.
In our case the BUY STOP order is 1.4172 + 15 = 1,4187
A stop loss order should be placed at the 1:00-2:00AM EST bar
HIGH. In our case the Stop Loss = 1.4157
Take Profit: (for a buy order)
Option I ( profit 10 pips )
Take profit for a BUY order should be placed at your entry +10
pips. In our case 1,4187 + 10 = 1,4197
Option II ( profit 10 - 100 pips )
(Option II is recommended for traders with trading experience, I
still recommend Option I – 10 pips)
Use a trailing stop = 10-20 pips to maximize your profit. In most
cases you will make 50-100 pips profit in a strong market.
SELL order position for intraday breakout:
Place a SELL STOP order at the “1:00-2:00AM EST bar LOW - X”
level.
In our case the SELL STOP order 1.4157 - 15 = 1,4142
A Stop loss order should be placed at the 1:00-2:00AM EST bar
LOW. In our example the Stop Loss = 1,4172
Take Profit: (for a sell order)
Option I (profit 10 pips)
Take profit for a SELL order should be placed at the entry - 10
pips. In our case 1,4142 - 10 = 1,4132
Option II ( profit 10 - 100 pips )
Use a trailing stop = 10-20 pips to maximize your profit ( as
explained for a buy order ).
Tro 2009 Buy Zone BFD Breakout
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Write a comment
eric (Tuesday, 02 April 2019 16:04)
what pair can use this strategy?
William (Tuesday, 03 March 2020 22:40)
I have just looked at the chart and it seems that the 1H candle you talk about is 22:00 Greenwich time. But results seem random.