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This is a BREAKOUT STRATEGY for the GBP/USD and USD/JPY currency pairs.

It is true that trading a BREAKOUTSTRATEGY can be a gold mine. In the financial markets, nothing works better than breakouts because every big move starts as a breakout from consolidation.

The BREAKOUT STRATEGY relies on choppy movement in the Forex pairs GBP/USD and USD/JPY during the Asian session. After the European Market open, the market reacts more quickly and there is a high probability that price will breakout from consolidation. What is important here as well is the fundamental concept, that the price moves much further during the day. Because the night range is most often just a small fragment of the daily range, there is a high probability that price will break from consolidation and it will hit at least one of the targets placed close to the consolidation area. Of course there is a small chance that price will stay in a small range all day long. However, usually news events are moving the market and price makes new highs or lows during the day. Finally, the market moves in one main direction. My goal is to profit from the short-term trend in a single day.

The BREAKOUT STRATEGY is based on the fact that price is forming a consolidation from time to time because of slower movement.

I trade all breakouts and that's my unique way. Most traders trying to filter false breakouts or they give up and stop trading after a false breakout. Actually, nobody can predict the market.

Every morning when all the trading conditions are met, I place at 09:00 London Time one buy stop and one sell stop order for the currency pair GBP/USD and at 11:00 London Time I do the same for the currency pair USD/JPY. If the actual Market price is to close to place a pending order, I buy or sell immediately at the best available current price.

The pending orders are valid for the GBP/USD until next day 08:30 and for the USD/JPY until 10:30 London Time.

The distance between the upper target is equal to the range and to the stop loss. The same holds for the lower target. Since the daily range will overrun the night range, in most of the time at least one of my targets will be reached. If one target is missed, the market change direction and to profit on the other side to recover the loss. But some days can happen I loss on both trades.

When one order is filled, both the profit and stop loss will become active.
If the stop loss is hit, then the other order is filled. If the profit target is hit, I cancel the other pending order.

Sometimes I will change my opinion during the trade and I close the trade before hit stop loss or take profit. It will usually happen if the market isn't developing as I expected and the charts show me that the trade lost its power.

I start trading off with risk of 1% of my total capital on any opening trade.

Here with Global Forex Signal I can only open every time the same lot size, so the result here to my account are different.

To see my real performance have a look at: http://www.mt4i.com/users/fxtc02

Happy Trading!

ForexInvestI - Forex Investment Strategy

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 +1.9% +8.4% +4.7% +0.1% -6.1% +13.1% +13.8% (+0.7%)
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Pips $
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Strategy Name ForexInvestI
Date Started 2010-05-24
Number of weeks 28
Max concurrent lots 4
Max drawdown for 1 lot 300 (pips)
Min account amount $ 5000
Max drawdown for full amount 50 % OK
Trading currencies USD/JPY, GBP/USD, GBP/JPY
Pips $
Total +1770 pips +$1843.45
Total profitability +36.87 %
Trades 195
Profitable Trades 114
Loss Trades 81
Win ratio 58 %
Maximum account level +1771 pips +$6844.64
Minimum account level -348 pips +$4620.66
Max loss -952 pips -$952
Max loss (%) 19.00%
since 2010-08-26 to 2010-10-26
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