Trade Entry
the first 4H bar of the week close, add 50 pips to set the breakout box high, subtract 50 pips to set the breakout box low. If a trade closes, take the close of that bar, add 50 pips to set the new breakout box high, subtract 50 pips to set the new breakout box low. Continue until Friday.
Entry Conditions
Condition 1 Ruleset: Follow the MA’s; Set the stoploss according to the MA's
Buy order: If a buy order is triggered and the Red MA is below 20 pips from entry, Set the stoploss to the Red MA.
Sell Order: If a sell order is triggered, and the Red MA is above 20 pips from entry, set the stoploss to the Red MA.
Condition 2 Ruleset: Set a trailing Stop
Buy Order: If a buy order is triggered, and the Red MA is 20 pips or higher from entry, set a trailing stop to 50%-75% of the Breakout Zone. The % is your own personal risk preference, but never more than 75%, otherwise it’s pointless to reduce 100% stoploss.
Sell Order: If a sell order is triggered, and the Res MA is 20 pips or lower from entry, set a trailing stop to 50-75% (reasons for this found in buy order) Breakout Zone.
Rules When a trade is in play
Once a trade has been triggered, and you have determined what condition you must follow.
Condition 1:
Buy order: So your trade has triggered, and the Stoploss is set to the Red MA. Update the stoploss at the open of every new bar to match the position of the Red MA. Because this acts like a manual trailing stop, if the Red MA retraces, do not update until the Red MA retraces again, and passes the last highest position the stoploss was adjusted to.
Once the stoploss is equal to Break Even or greater, set the stoploss to Break Even.
Once the Black MA passes over the Break Even point, Adjust the stoploss to follow the Black MA. Because this acts like a manual trailing stop, if the Black MA retraces, do not update until the Black MA retraces again, and passes the last highest position the stoploss was adjusted to.
Sell order: So your trade has triggered, and the Stoploss is set to the Red MA. Update the stoploss at the open of every new bar to match the position of the Red MA. Because this acts like a manual trailing stop, if the Red MA retraces, do not update until the Red MA retraces again, and passes the last highest position the stoploss was adjusted to.
Once the stoploss is equal to Break Even or greater, set the stoploss to Break Even.
Once the Black MA passes over the Break Even point, Adjust the stoploss to follow the Black MA. Because this acts like a manual trailing stop, if the Black MA retraces, do not update until the Black MA retraces again, and passes the last highest position the stoploss was adjusted to.
Condition 2:
Buy order: So your trade has triggered, and the Stoploss is set to be a Trailing Stop. Keep track of where the Red MA is located while the trailing stop is inside the breakout box.
If the trailing stop crosses the Red MA before reaching Break Even, adjust the Stoploss to the Red MA and follow Condition 1 Buy rules from Red MA on.
If the trailing stop reaches Break Even before crossing the Red MA and after crossing the Black MA, set the Stoploss to Break Even, follow Condition 1 Buy Rules from Break Even on.
If the trailing Stop reaches Break Even before crossing the Red MA and before crossing the Black MA, Keep the trailing stop active, once it crosses the Black MA adjust stoploss to Black MA and follow Condition 1 Buy Rules from Black MA on.
Sell order: So your trade has triggered, and the Stoploss is set to be a Trailing Stop. Keep track of where the Red MA is located while the trailing stop is inside the breakout box.
If the trailing stop crosses the Red MA before reaching Break Even, adjust the Stoploss to the Red MA and follow Condition 1 Sell rules from Red MA on.
If the trailing stop reaches Break Even before crossing the Red MA and after crossing the Black MA, set the Stoploss to Break Even, follow Condition 1 Sell Rules from Break Even on.
If the trailing Stop reaches Break Even before crossing the Red MA and before crossing the Black MA, Keep the trailing stop active, once it crosses the Black MA adjust stoploss to Black MA and follow Condition 1 Sell Rules from Black MA on.
For all conditions!!!!
If your orders have not been stopped out by the end of the week, close all orders before market close.
Close 1/2 Position
I recommend closing half a position once it reaches a profit of 100% Breakout Box and letting the other half run it’s course.