50 Pips Daily Breakout Forex System

The 50 Pips Daily Breakout forex system is designed to capture market moves during the overlap of the three major market session hours.

This trading strategy is scheduled for entry between 7am – 7pm GMT, which translates to 10am – 10pm server time on our broker of choice, which is illustrated on the examples below.

Chart Setup

MetaTrader4 Indicators: KAMA.ex4 (default setting)

Preferred Time Frame(s):  30-Minute chart

Recommended Trading Sessions: Entry between 7am – 7pm GMT

Currency Pairs: Any low spread pair, such as EUR/USD, USD/JPY, GBP/USD,..

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following indicator or chart pattern gets displayed:

  1. Wait for our target market session to kick in. If the 7am GMT candle sees price finish bullish and also aligns above the red line of the KAMA indicator as seen on Fig. 1.0, enter a bullish position on the open of the next candle and set take profit target at 50 pips (a necessary condition for this strategy).

At this point, all you need to do is to ride the position(s) through the target session hours of 7am – 7pm GMT.

Stop Loss for Buy Entry: Place stop loss 5 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following holds sway:

  1. If price dips lower and hits our stop entry target, we can assume that our exit strategy has been triggered.
  2. We recommend the use of trailing stops considering our take profit target is set at 50 pips from entry point. This is in view of the strategy’s marginal use of technical indicators.

Sell Entry Rules

Initiate a sell order if the following indicator or chart pattern takes precedence:

  1. Wait for our target market session to kick in. If the 7am GMT candle sees price finish bearish (close below the session open) and also aligns below above the red line of the KAMA indicator as seen on Fig. 1.1, enter a bearish position on the open of the next candle and set take profit target at 50 pips (a necessary condition for this strategy).

At this point, all you need to do is to allow your orders run through the target session hours of 7am – 7pm GMT.

Stop Loss for Sell Entry: Place stop loss 5 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds true:

  1. If price rises higher and hits our stop entry target, we can assume that our exit strategy has been triggered.
  2. We recommend the use of trailing stops considering our take profit target is set at 50 pips from entry point i.e. exit once position(s) have attained 50 pips, considering the strategy’s marginal use of technical indicators.

Sell Trade Example

Fig. 1.1

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About The Trading Indicators

The Kaufman’s Adaptive Moving Average (KAMA) indicator for MetaTrader4 was developed by Perry Kaufman, to account for noise and volatility in the market.

Kama will carefully align with prices even when price swings are somewhat small and the noise is low.

Kama will realign when price swings expands and trail prices from a greater distance.

The KAMA indicator can be used to determine time turning points, spot overall trend and filter price movements.

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  • Up To 100 Pips Per Trade With Low Risk
  • Includes Entry, Stop-Loss And Take Profit Rules
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