Simple Breakout System for GBP/USD and EUR/USD
-Determine the 06.00 CET – 10.00 CET High Low on EUR/USD and GBP/USD
-Determine the 10.00 CET – 14.00 CET High Low on EUR/USD and GBP/USD
-Set Buy Stop at High + 5 pips and SellStop at Low – 5 pips for both time frames and both currencies.
-Set Target Price at entry + 80 pips for EUR/USD and entry + 120 pips for GBP/USD
-Set Stop Loss at entry – 50 pips for EUR/USD and entry – 70 pips for GBP/USD.If the other side of the breakout is within 50 pips for EUR/USD or within 70 pips for BP/USD then the Stop Loss will be that level.(Longtrade: SL = Low range – 5 pips = Sell Stop; Short trade: SL = High range + 5 pips = Buy Stop)
-Move the SL to breakeven after a gain of 30 pips for EUR/USD and a gain of 40 pips for GBP/USD.
-If a certain position is taken and price turns against you and it breaks the other side of the breakout channel then turn. If the breakout channel is broader then the stop loss first the stoploss will be hit. If the breakout channel is narrower then the stoploss then hitting the other side means that you have to turn your position.There is only one turn per time frame possible .
-At 24.00 CET all orders expiring and close all trades at market On Friday we do the same at 23.00 CET.
6 – 10 CET or
8 – 12 GMT
10 – 14 CET or
12 – 16 GMT