Newtron Bomb
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Time based break outs can be fraught with perils.. I did try to point this out along with some other points over there but it was not well received and the folks on that thread continue to plug away at it.
One of the things that kept it going and looking good backtesting was the financial melt down when we were seeing regular daily 3c 4c 5c and more movements and it was really hard not to make any money with any type of strategy
If you are looking at this method I would strongly recommend that you factor in a range of movement as a filter. A simple rule would be Price done more thane 65% daily ATR. No trade.
LAst weeks GBP break out comments should be a good enough and recent example of what price does when ATR done. Thats right, most commonly price stops
One of the things that kept it going and looking good backtesting was the financial melt down when we were seeing regular daily 3c 4c 5c and more movements and it was really hard not to make any money with any type of strategy
If you are looking at this method I would strongly recommend that you factor in a range of movement as a filter. A simple rule would be Price done more thane 65% daily ATR. No trade.
LAst weeks GBP break out comments should be a good enough and recent example of what price does when ATR done. Thats right, most commonly price stops
while we're in wind-dwon mode until the New Year, I thought you might want to look at alternative breakouts.
over on FF, there is the 7am-9am "Big Dog" breakout.
1400-1600 USD Breakout Strategy. (Around US OPEN)
http://www.forexfactory.com/showthread.php?t=103682
if anyone wants to do any analysis, it may give traders 2 bites of the cherry of a day.
ie, 2 lots of 20 pips perhaps?