Happy Halloween, earthlings! Before you head out to your gatherings and trick-or-treating, let’s all give kudos to October’s winner…
Similar to last month’s winner, this system is also looks to buy or sell at or near the previous day’s high or low. The rules are also very human-friendly:
- Entry: Look at the daily chart, and set a buy order at the previous day high and a sell order at the previous day low. Once one of these are triggered, cancel the other trade.
- Take profit: 20 pips
- Stop loss: When LONG, set stop loss at the previous day low. When SHORT, step stop loss at previous day high.
That pretty much sums up all the rules! Here’s a chart to help you follow along:
If you want to make it slightly more complicated and allow for some manual trade management, kbfc00 also suggests that once your orders are triggered, you may zoom in to the 4-hour chart. If price has yet to trigger your take profit or stop loss after the first 4-hour candle, you can move your stop loss to first 4-hour candle’s high/low +5 pips.
Overall, it is a rather simple system, which is what we are after. The question is, will this hold up against my trading framework or will it falter like many other systems? I will retreat back to my pod (which now looks like a pumpkin, no thanks to Happy Pip) and shall return next week with the mechanized version of the Simple Day Breakout System!
For bagging the most number of votes, the Simple Daily Breakout System will be featured on the BabyPips.com homepage for an entire month and will be backtested and graded by yours truly.
What an awesome deal, right? But don’t get your oil pans dirty just yet, we’re just getting warmed up!
The winner, kbfc00, will also be inducted into a very exclusive club – the Best Forex Trading System Hall of Fame. And to top it all off, he wins the right to donate $50 to a charity of his choice among the Golden List of Charities!
Submissions for November Best Forex Trading System contest
As we bid farewell to the month of October, we say hello to a new month and a new round of submissions. So now, I formally open the Best Forex Trading System contest for November and I invite you humans to share your trading systems once more! Just remember to follow the contest rules and regulations, and you’re all set!
What are you waiting for? Get your submissions in now! Let’s keep the dream of finding the Holy Grail system alive, my earthling friends!