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ALSI Breakout Strategy

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magicactus
Frequent Contributor
30minute & 5minute chart, the reason for this is that the first 30 minutes of trade is the most important data we can capture for a trading day. If there is news that has come out or any factors we arenÂ’t aware of it will be reflected in the first 30 minutes of trade. We use the 5minute chart for a trigger Method: The ALSI opens at 8.30am we donÂ’t do anything until 9am. Once we have the first 30minute candle close (the candle from 8.30-9:00) we mark off the high and the low of this candle with horizontal lines, precision is key here. From this point we have our parameters to go long or short as well as our stop loss level. There are 3possible outcome to our trade. 1: Take profit of 80-200 points 2: Getting stopped out 3: Taking a small profit We have a healthy risk:reward ratio with this strategy and good hit rate. This is a breakout strategy which works quite well. I am unable to quote source hence inverted commas. One can get up to three good trades in a day
7 REPLIES 7
Not applicable
Ive been watching a VERY closely related system to this, the Opening Range (OR) system is very common.

It might work for you, and theres a lot of benefits I found from it, like its low maintenance and generally it is profitable.
The negatives I found on it though is it often goes through months of breakeven/losses, and then suddenly a big burst, then 10 months of nothing. It takes a lot of emotional capital to trade.
Maybe as you use different parameters your experience might be different to mine though.
The other problem I had with it was the slippage, as the system is tested on exact levels but ALSI is not liquid enough.

What Im doing is testing this system on the DAX rather, I find developing systems for the ALSI is easier than developed markets, but a lot of it is illusionary as the slippage kills.
Ive had to too many professionals now tell me to rather look at the dax for me to ignore the advise.
magicactus
Frequent Contributor
BC, I added Bollinger Bands with an 8EMA which helps a great deal in establishing the trend. Normally use the range as the exit. Todays breakout is a perfect example. I also find the breakout is often retested, which certainly does test the emotions. My 2c
Not applicable
thanks, my exit strategy is very different to yours so the results could be significantly different. Will definitely have a look at it.
magicactus
Frequent Contributor
Also move my stop to break even once 80-100 points in the black, if its flying trail by the same amount. Thanks for your input.
magicactus
Frequent Contributor
BC If you want a screenshot of todays trade, will send you a mail
Not applicable
sure, be very interesting to look at. Thanks.

[email protected]
Rams
Super Contributor
The system is not important, but you must have one . Remember price, buy when it goes up and sell when it goes down, that's a good system......same as throwing darts. With good money managemnt , most systems will work. I decided to lose the indicators and such, was left with just 2 lines, now I have lost that too...