What do you guys think of this system?

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At 5PM EST:

1- Close out any open positions
2- Cancel any unexecuted orders
3- Set an Entry Buy order 1 pip above previous high
4- Set an Entry Sell order 1 pip below previous low
5- Set stops and limits using the following guidelines:

50 pip profit target, 25 pip stoploss if ADR ABOVE 200
40 pip profit target, 20 stoploss if ADR BETWEEN 175 and 199
30 pip profit target, 15 stoploss if ADR BELOW 175

Do no trade if ADR is below 100

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How to calculate ADR (Average Daily Range):

It may be easiest to use an excel spread sheet for this.
Take the H/L for each day, for the past 14 days.
For each day list the amount of pip's between the H and L
Example. H = 1.5623 L = 1.5586
5623 – 5486 = 137
Add the total amount of pip's for all 14 days and divide it by 14.
This will give you the average daily range.

this is an old system, saw similar system to it a couple years ago on another forum the guys were going to take a $300 account to $1 million, they made it to $20 + thousand and the thread stopped. I do not know if the market changed on them or what happen.

Give it a go on demo account. the money management they were doing was starting at $300 and trading $1 per pip, once they doubled the account then they would double the trade size (once the account hit $600 then they went to $2 per pip, to $1200 then $4 per pip etc.....)

Good luck

Would be nice with an EA

Has it been working for you? I'm new, how do I check what the H/L has been every day? Does it work with other currencies?

Ya, this was an easy one.... Happy Thankgiving! Please let me know how this works out for you.

Also, you'll have to work on the ADR values. The ADR for the last two years is only 124.

Attached Files

GBPUSD_tsd_v1.mq4 (4.9 KB, 415 views)

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"Anyone who has never made a mistake has never tried anything new." -Albert Einstein

I haven't manually tested the system. But I have just backtested the EA. Whoops, this system eats my account fast. Not sure if its the actual system, or the actual EA. Hmmm...

What does this do?
Thanks

Geezer,

The system worked when the markets had some volatility. However, as Nich pointed out, the volatility has left the market and these breakout systems are now languishing. That is why you see that kind of losing results.

set up entry buy order 1 pip above previous high but which high? for the day or the last hour or what?

Who has been using the strategy ? And how is the profit ?

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Nic
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