50 pips with GBP/USD, without any indicators
Gbpusd
Mine is simple enough, wouldn't even necessarily call it a system. It's the age old breakout idea, just according to my observation I've come up with a time window to trade, and have decided on how my money management is going to be. I don't like to idea of looking at the screen all the time. I like my time away from the computer. So this system ideally let's me have a lot of time away from the PC.
I look at GBP/USD after 4.35 or 4.40 pm (it's GMT+8 here), because I notice during this time there's usually a spike or reversal that could take out my stop if I entered.
Usual thing, if it breaks the channel of 8 am - 4.40 pm, go long if upper channel is breached, go short if lower channel is breached. I set my stop loss at 25 pips, take profit 50 pips. Once it's achieved, I do not trade the rest of the week. Start again on Monday.
If no trades are open at 7.50 pm, I cancel all working orders and wait for set up next day.
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Breakeven
I breakeven when it's 33 pips in profit. So far I didn't specify a expiry time for the trade, so I let it either hit the 25 pip SL, or 33 pips to breakeven. Once it reaches 33 pips, we don't lose either way. We either make 0 pips, or 50 pips.
So few things will happen:
Stop loss hit: 25 pip loss.
33 pips profit: Move to break even
- SL hit, 0 pip loss
- Target hit, 50 pip win.
I've learnt that trading defensively works best for me.
Mm
When I setup only past 4.30 pm, I might miss out some good moves between 2-4 pm, sometimes it might be the only good move of the day. But reversal is quite often here, so I'd rather let the market iron itself out then do the breakout system.
As for me canceling trades at 7.50 pm, this is something I'm still looking on fine-tuning, but so far, I think I'd rather stay out of the market when 8.30 pm approaches. Spikes most likely will happen, so if the trades get triggered by this spike it would be a loss. So I might be missing moves here once again, but there's too much uncertainty here for me to want to be in.
As for the MM, I attached an file here to help me stay on track. It shows how much a 50 pip gain would affect the account every week. Considering I compound my gains, with a $3500, in about 2 years, it'll be close to $20,000. That is there is absolutely no deviation from the plan, strict 50 pips per week.
Not really phenomenal but some other systems' standards, but if only I have $30,000 to start with today, in 2 years, if I make only 50 pips each time (sometimes on a bad stretch, it might take 2 weeks to achieve the 50 pips), this 30k turns into $215k.
Hello
I am in France (GMT+2) so what is the time for me !?
10:30 AM ?
Channel breakout from 2:00 AM to 10:30 AM ?
Do you trade in demo or live account ?
Thanks
Time
Hmm, let's see, if you are GMT+2 and I am GMT+8 then we are 6 hours apart.
So if it's 4.35 pm my time, then it would be 10.35 am your time.
7.50 pm my time is 1.50 pm your time.
So basically for you, the window would be 10.35 am - 1.50 pm.
Do you have daylight savings though? If you do it might make a difference. I can't understand how to calculate DST for the life of me, so maybe someone from that side can help.
Hello
I am in France (GMT+2) so what is the time for me !?
10:30 AM ?
Channel breakout from 2:00 AM to 10:30 AM ?
Do you trade in demo or live account ?
ThanksLive
Been following this setup for a few months on demo, am confident enough to be live with it now with this strict money management plan I've drawn out.
This is not my first live account attempt, so I know the danger of deviating from your trading plan and MM. So this time I'll kick myself into having perfect discipline so I don't lose another account.
Previous trades.
I've been looking at this setup for some months now. I'll go back to the charts and make screenshots on trades from January 2008, that's when I start looking at this setup.
I'll show exactly how the trades were carried out. Won't skip any weeks, to show all the good weeks and also the bad weeks. I'd like to show that there will be definitely times that the market can beat up any strategy badly, but with good money management, a good trader will be able to pull through and come out a winner.
I'm using a semi-martingale money management for this strategy, and I understand many people would think martingaling is a terrible idea. That's why my version of semi-martingale is a scaredy-cat one, because I'm aware of how fast it would blow the account if done incorrectly.
Thanks for sharing this setup with us,I'll try it!
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RSI, stochs, MACD and all these indicators might work well for many, but I feel uncomfortable with them. I like something simple. I'm using something that has been working well, without any indicators, just strict money management.
All I need is to make 50 pips every week. With this system, if you look back at the charts, it's been achieved almost every week. There was about 4 or 5 times when it wasn't achieved in one week, but took 2 weeks, but still in the end the 50 pips was achieved. This is where strong MM discipline comes in to save the day.
*Time stated here will be in GMT+8.
I'll open the GBP/USD chart at 4.35 pm. I trade the breakout of the channel from 8 am - 4.35 pm. Usually I set up the trade at 3 pips away from the high/low. Stoploss 25 pips, target 50 pips.
If no trades are opened at 7.50 pm, I cancel all trades. Wait for proper set up the next day.
If I get stopped out, I do not re-enter the same day. I wait for a chance the next day, between 4.35 pm to 7.50 pm. I increase the lot size just enough to recover my loss the previous day. Some would freak out at this point because it's sort of a martingale strategy. Firstly, I'm not doubling up my lots, but 1.5 times. Because my stop loss is 25 pips, it's half of my target. If I lose, I need to make 1.5 times the next time to recover my loss and achieve my target. But this is not entirely the case all the time. I do have a table drawn out on how many lots I would buy on the first, second, third try etc, and how many pips I would set as target. I will gradually increase the target size so that I could keep the lot size low.
It needs to be a balance of manageable lot size, and achievable pip target. I would like to achieve my target in as little tries as possible, so keeping the pip target more achievable is very important to me.
Because of this semi-martingale strategy, I start off with trading 1% of my account. This leaves plenty of room for me to trade safely.
After I achieve my 50 pips for the week, I stop. No matter what.
This strategy might not promise as much pips as some other strategies, but for me this is simple enough to keep me happy. Indicators and such give me a headache, maybe because I can't understand it or it just seems like noise to me. Even very good indicators needs to be used with good money management, otherwise someone could just as easily blow their account.
So, what's the potential of this strategy? Let's say we start with a small account size. $3500.
In 52 weeks, or shall I say 52 successful attempts (some attempts take 2 weeks, but that happens only a few times a year), you will be making $188 dollars per week, that is $752 dollars per month.
Of course if you could start of with a larger account, all the better.
So here's how it looks like: Starting capital; How much you would be making in 52 weeks
$3500 ; $752 monthly
$10,000 ; $2152 monthly
$15,000 ; $3228 monthly
$20,000 ; $4304 monthly
$30,000 ; $6460 monthly
I don't know about you, but this is more than enough for me to live comfortably. I very much prefer having a stress-free strategy, than to live on fear and greed for the promise of a much larger return, which is not guaranteed. The numbers stated above, I can safely say if I keep my head level, stick to my system and MM, is more or less guaranteed.