Position Sizing for Breakout System

Click here to see the breakout system.

Now, the Stop Loss is simply the opposite signal. So if the long order triggered, then the Stop Loss would be the short order price, which would triggered the short order.
Everyday we'll have different range of Stop Loss. So if you want to limit your risk per trade, you will have to calculate the quantity.
After you know the high and low, and you adjust it with the spread, you can find the range,which is the Stop Loss.

Here is the example from yesterday on GBP/JPY:

Range : H - L = 72 pips
Equity : $100
Risk : 5% = $5
So, the quantity for a position with 5% risk on a 72 pips Stop Loss will be
($5/72) * Quantity Contract Size. Let say it's a mini account so it will be:
($5/72) * 10000 = 694.44 Quantity which is 0.06 Lot.

Actually it is not just for a breakout system, as long you know your stop loss. And this has nothing to do with risk-reward ratio, it is only to limit the risk. Okay hope this information is useful.. :)

Indicators for Metatrader

Guys, I added the 'Downloads' section. This will be the first post under that label. Here I got indicators for MT. I can't remember where I downloaded them, I think it was a forex website or something. I like to browse for MT4 indicators on the web. I like to try those different indicators on my chart, try to learn something from them and eventually I hope I can find my ultimate preferences of indicators. Not the ultimate system, just my ultimate preferences of indicators, which should fit my style of trading. So feel free to download them okay:)

DOWNLOAD HERE

Weekly Breakout

Hi guys, I found this system on Forex Factory. The system is for GBP/JPY. The system use the last 2 candles of the week on 4 Hour chart to determine the high and low. I was actually notice it myself so I was quite surprise when I saw the system on the Forex Factory. It is nice to know that someone else notice it too. :) Anyway the chart will look like this:

I use stop order above the high and low to trade this system, just 1 pip away. I also like to wait for the first candle on the next week to set the high and low, so the high and low will determine by 3 candles. Please check out the system on the Forex Factory here. The guy got details for target etc. :)

Oh, and the example above is from a good week, this week went ugly.. ;P See you guys next week..

19 - 23 May

The pair continued it sideway move. It was not until Thursday when it make a new high for the last 2 weeks. The pair went for 206.54 without a significant retracement, at least not significant enough for me because the price didn't cross the 5 EMA at all. However, trendlines proved to be worthy. I got the breakout align with 5 EMA cross 13 EMA and 21 EMA, gave me an entry signal. The target should be the next trendline but my plan was 50 pips for each entry. The pair went back down until 204.17 on the next day, at 61.8 retracement level.

My result ends up well for this week, gain 176 pips and reach my 3% average growth target. I said last week that I expect the pair break the 202.60 support. Well..it was a strong support ;P USD/JPY did break my trendline and bounced on the trendlines. GBP/USD break my Daily trendline although it already touched the Daily upper Bollinger Bands. Okay thats all. Have a nice weekend people.. :D


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