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 follows:

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.

Write a comment

Comments: 1
  • #1

    Rishu (Friday, 20 September 2019 20:01)

    nice strategy to take profit.