I am more than happy to trial it if someone can forward it to me - I have a VPS MT4 set up..

Thanks for the offer but we would rather that this didn't happen thanks - It's copyrighted and should not be shared.

However, if you do purchase the system we welcome your feedback for sure.


ReviewTeam - www.systemsfortraders.com

Originally Posted by Reviewteam

Hi,

Thanks and we cannot comment as we never tried it - To be honest we wouldn't know what to do !

Hopefully someone else can comment on this, someone with a bit more experience of MT4/EA's than us.


ReviewTeam - www.systemsfortraders.com

The EA should be accurate compared to manual trades, since breakout EAs are some of the simplest to code. ( Provided that the EA writer knows how to code a pending order - some don't!

It is simple to test the EA using the Strategy Tester facility in MT4 - its found under the View tab.

Ian

Thanks for that Ian, we will try and have a look one day even though it is something we have all, always avoided.


ReviewTeam - www.systemsfortraders.com

Hi Review Team,

I'm new here and would like to firstly say thanks for a great website.

I have been trading this breakout system now for quite a while on one of my live account with good results. It suits my trading style (I could never scalp trade). What follows is my own ramblings on this strategy which may help other readers who are considering purchasing this system.

If you trade this "straight out of the box" it will be profitable. (over the longterm)

Initially, this is how I traded it, but as time went on my understanding and confidence in the system increased, and I have changed things just a little.

The great thing about any breakout strategy is that you can back-test it easily, and I have spent a lot of time going over past data to try and fine tune this method. Like the author states, it doesn't really matter that much whether you choose 7AM, 8AM or 9AM for the GBP/USD breakout time, because each one would be profitable. 9AM is the most profitable but, up until recently, that was no use to me because I was out of the house by then. Accordingly, I set my breakout time at 8AM (still starting at 21:00 the previous day). I originally started by using the 7AM time. Since June, I have reverted to the 9AM breakout time.

"1 Minute Daily" for me usually turns in to "20 Minutes Daily" because I normally eyeball the charts looking for local highs and lows that may alter my entries slightly.

I do make use of the "wave" indicator, but in a different way to the author. If overnight price action is firmly above the wave (bias to the long side) then I still place both a long and a short order, but with a reduced (half) lot size for the short trade, as I am basically trading against the trend with the short trade. Vice-versa for short bias. If the wave is a complete mess (price ranging) then there is no short-term bias and both orders are set the same. Please understand that if you only traded "with" the wave, you would miss all the lovely reversals, which happen quite frequently.

If I am able to monitor the trade, I watch to see if the price is stalling near the TP. I drop down to the 5 or 15 min chart and look for any reversal patterns. If I don't like what I see, I am out of the trade.

If the trade is still running after 24 hours, without hitting its TP target, I reduce the target by about 15% as it usually means the trade is running out of steam. This seems to work well. However tempting, it's important that you don't close too many trades prematurely, as this will really skew the win/loss ratio.

The stop loss gets moved to breakeven if I get home in the evening and I am in the money (but still not hit TP).

I trade every day (even NFP) but I am wary of these days (and bank holidays) and will always reduce my lot size by half or more.

It must be said that this strategy only has a slight "edge". The win/loss ratio isn't remarkable and the risk/reward ratio is slightly negative. However, it does seem remarkably constant over a long period. As an example of just how constant this strategy is, just take a look at the following four periods (each 7 months long) :

Period 1 (Jan 2008 - Jul 2008) 105 WINS, 72 LOSERS = 59% / 41%

Period 2 (Aug 2008 - Feb 2009) 101 WINS , 77 LOSERS = 56.5% / 43.5%

Period 3 (Mar 2009 - Sep 2009) 109 WINS, 74 LOSERS = 59.5% / 40.5%

Period 4 (Oct 2009 - Apr 2010 partial) 107 WINS, 76 LOSERS = 58.5% / 41.5%

So, over a period of 568 trading days, there was a swing of just plus or minus 3% between winning and losing trades. This shows how powerful this strategy is over the long term.

Risking 10% of equity per trade is just plain suicide with this method. Even trading with 5% makes for tearful drawdowns on occasion. Early 2009, I experienced a 60% drawdown, and banging in the orders every day during this 3-week period took all my strength and faith in the system (and faith in myself to be honest). However, trading with a 5% risk also means you get out of the drawdown pretty quickly when things turn around (which they ALWAYS do). I now trade with a 2% risk per pair.

This is very much a long-term strategy. Over the short term, this strategy is only reasonable. If I had started with this system in Jan 2009, I would probably have ditched it. (To be honest, it would have probably given me a margin call). If ever I begin to doubt this strategy, I look back at my records, or I simply back-test a given period and this reinforces my belief in the methodology.

I hope the above helps

Dave

Hi Dave,

Firstly, welcome to the forum and we are glad you like it.

Secondly, thank you for taking the time to write such a detailed post, it's exceptional. It's the sort of post that makes this website such a useful resource for everyone and we would love to hear back from you in the future regarding your progress. Be interesting to see how we get on month to month, assuming we make the decision to continue with this system.

As a note - How much have you noticed rollover costs eating into your profits/adding to losses or are you trading on a Traditional (as opposed to Spread betting) trading account?


Do remember, your comments are important, if you decide to purchase this system, please support us by using our link and by reporting back your findings, both are valuable to us and the service.

ReviewTeam - www.systemsfortraders.com

Rollover costs are not something that bothers me yet (but see below). I have a live account with FXPro, but I use this for my charts only. I don't place trades through FXPro, but their live feed is better than their demo feed so I opened a small live account just for the feed so to speak. I place most of my trades with OANDA, so I pay or receive interest on all open positions. This seems to even-out over time.

I am currently demo-ing Smart Live Markets which I believe is the first spread-bet company that provides a MT4 platform. This would be purely for UK tax reasons, so a no-brainer for me really (once I have used up my UK CGT allowances).

On another point, today's G/U setup is a classic example where I would be aware of local highs/lows on the chart before setting my buy and sell orders. I adjusted my buy order to be above the high made at about 16:00 GMT yesterday.

Dave

Thanks again for that feedback - makes sense!

All,

After some testing by Sarn (thanks Sarn) we have just made available the Trade Calculator we use ourselves for this system. Its available here to logged in members only.

Hope it helps.

Real-Time trading this month, GBPUSD (09:00) Monday - Thursday and USDJPY (11:00) Monday - Wednesday.

GBPUSD
• 22 trades, 10 winners and 12 losers = -15.5%

USDJPY
• 12 trades, 5 winners and 7 losers -12.5%

Note: Figures assume a 5% risk of account balance per trade and include all spreads and rollover costs.

So, a bad start for us with 1 Minute Daily but as per the review we are prepared for these drawdowns on the basis, long term, it will be profitable.

Do remember, your comments are important, if you decide to purchase this system, please support us by using our link and by reporting back your findings, both are valuable to us and the service.