New Breakout strategy for GBPUSD
So, as per my previous post, I mentioned that I did trade. I like breakouts so this is very similar to what I was doing before except that rather than taking the low and the high between 4 – 7am UK time, I am taking the low and high of a much higher time frame… 9pm to 9am. I then do the same thing, buy when the upper barrier is breached or sell if the lower barrier is breached. The target is the size of the band and the stop loss is the other side of the range. I wouldn’t trade though if the range between the two bars is more than 120 pips or so.
Also, I’m taken a much larger timeframe, the range is a lot larger than that when I take it between 4 and 7am. To ensure that I don’t go too big, I have to trade smaller lots. I am not prepared to risk more than 5% of my trading pot for each trade.
Anyway, I traded this today after disowning (temporarily) the previous system. The upper band was 14490 and the lower one 14394. The upside target was 14586 which is 96 pips. However, I am also risking about 90 pips for the trade so I had to trade at half my usual size.
Guess, what, it was a winner! I made all 96 pips in a few hours! Shame it was only half the normal size but a good start to a new breakout strategy for the GBPUSD market.
