Simple Day Trading Breakout ~ forex market times gmt
Simple Day Trading Breakout is a strategy can be implemented as a full trading system and best of all is that you can use it even if you just can trade 10 minutes a day. The best period to use this strategy is between 8h and 18h GMT (3am and 1pm EST).
We can use this strategy only for EUR/USD and for GBP/USD. Since the rules for each of these currency pairs are different, I’m going to divide this strategy rules for each currency pair.
The first thing you need to do is to draw 2 lines: one at 24h GMT (7pm EST) and the other one at 8h GMT (3am EST). These lines are going to be our entry point’s reference.
If during this period EUR/USD has moved more than 60 pips, you won’t have any trade during the day. If EUR/USD has had less than 60 pips volatility during this time span, you can have a buy or a short sell opportunity.
In this strategy, we will use a fixed stop loss as well as a fixed target.That’s why you can use this strategy as a mechanical trading system.If at 18h30 GMT (1:30pm EST) you’re still holding the trade becauseit didn’t reach your target or your stop loss, you should exit thetrade.
This strategy can be used in 5, 10 and 30 minutes as well as in 1 hour charts.
Trading rules Simple Day Trading Breakout
To enter in a long position: You should enter your buy order 10 pips above the higher line - that you draw in the chart -, which represents the higher price EUR/USD achieved between 24h and 8h
GMT (7pm and 3am EST). You should also place a 25 pips stop loss order.
To exit a long position: Your target is 40 pips. If EUR/USD doesn’t reach it, you should exit the trade at 18h30 GMT (1:30pm EST).
To enter in a short sell position: You should enter your short sell order 10 pips below the lower price achieved between 24h and 8h GMT (7pm and 3am EST). You should also place a 25 pips stop loss
order.
To exit a short sell position: Your target is 40 pips. If EUR/USD doesn’t reach it, you should exit the trade at 18h30 GMT (1:30pm EST).
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Simple Day Trading Breakout |
The short sell order was triggered at 1.4286. You now have a stop loss set at 1.4311 and a target at 1.4246. Our target was reached. We made 40 pips profit on this trade.
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