Morning Breeze Strategy

[feb2865]

Please see the atachement

Regards

Raul

[MrPaul]

Raul,

Thank you for putting this into an easy to understand document! I have begun to backtest and have found that it is a profitable method indeed. An interesting thing I have noticed is that more ofthen than not, if the Market is able to push through the H/L and complete a candle by a meaningful degree, it can pullback deeply and still end up closing above/below the breakout (basically following the initial direction) by the close of the day. That to me was very interesting...Back to more testing...

[feb2865]

Thank you Paul

wow!!! I have never thougth about it. Excellent observation Paul.

If you have any questions don't hesitate to ask...

Raul

[Soultrader]

Thank you very much Raul. Very kind of you to share it with us. I have a question for you.

Do you take the 15minute bar from 9:15 to 9:30 am? Or is this a strategy based on the opening 15minute breakout?

I ran a quick backtest (need to do more) and found this very effective (9:15 to 9:30 bar) but a very fast trade good for 10 points most of the time. At times the markets do indeed take off in the direction of the breakout but can be very hard to capture the move since I would look for a quick 10 points. Will need to run some more backtests... thanks though

[torero]

Thanks for sharing, Raul. The advice is worth as much gold as the system itself. (what can I say, I'm sucker for inspirational stories).

I find the only way to determine momentum since it's so important is using 2 charts: one 15min and a 100 tick chart, and synch them to see how fast the breakout take place. This is for backtesting historical data. But I'm going to watch for a while in real time to determine what is acceptable pace of momentum before making an entry. Raul, hope you can talk us through in chat room. Thanks again.

[feb2865]

Hi James

I hope you're feeling better by now. Yes I take the bar from 9:15-9:30

Torero

100 tick charts sounds like a good idea to me. I use 15 and 5 minutes charts for backtesting The more accurate you can gauge momemtum, the better will be. Feel free to add any input.

Remember, the core of this strategy is momentum

I want you guys to really backtest this strategy to the extreme. Take your time

Think about this: If all your trades can be done in 1/2 hour...instead of waiting the whole morning /afternoon bitting your nails hoping to see if the market cross over/bounce any significant level. In my opinion it will have a significant impact on the emotional side of trading. Plus will make you $$$$$

That's why I want you guys to backtest it real good. Make sure you know what you're doing.

Overnigth trading simply put is money for us to be taken. But you have to be fast.

see you guys in the morning

Raul

[Soultrader]

Thanks Raul... still very feverish but feeling somewhat better. I havent been this sick in years.

I dont use any type of momentum indicator and would like to ask if the flow of the tape is enough to judge momentum? Let's say the breakout occured to the downside with enough 10+ lots (for YM) on the bid, would this be enough momentum to confirm this breakout strategy?

I like to watch for size and the flow on the tape. Usually if the tape is rolling fast, this indicates a potential move in either direction. As the tape slows down, price tends to become choppy and I look to exit (if im in a position) or remain flat.

[TinGull]

Once again, Raul, THANKS!!!!

[namstrader]

Thanks Raul, your personal story is very inspirational. A breakout setup for the toolbox, and most importantly, is being able to breakout from all the warnings and lack of confidence.

[carter]

Very interesting strategy feb. I never traded currencies but will look into this. Thanks