3-10 柱突破 (3-10 bar breakout)

Hi all,

here's an idea I've been playing with to try and have a completely automatic discretion free strategy to supplement other methods when time is a little tight.
The entries are straightforward and will throw you into a high probability position in line with the current momentum. The exits are more difficult to systemise although I'm using a simple method which is giving positive expectancy at the moment.

Time frame: 4 hours, simple barchart and 3-10-16 macd
To define current momentum, I'm looking at the crossing of the zero line of the 3-10 line - that's the blue line on my chart. If it goes positive I'm looking to buy the next high, and if it goes negative I look to sell the next low. That's it.

The chart shows the entries for July, there are 9. Using the TP parameters below there are 8 winners and a live trade still over the weekend. Going back a few months the worst period seemed to be early June with 4 losers in a row, but it seems to be averaging around 90 pips a week. Obviously July was an exceptional month for this strategy.

To keep it disciplined I'm using a take profit of 80 pips (on GBPUSD - I'm not looking at any others) and a stop of 80 to give a simple R:R of 1:1, so it's relying on more winners than losers. 80 seems a good compromise figure although many runs go on to make several hundred, but I'm looking at using the ATR for this also. However, as it stands it is working and I've started to use it to free up time when I am unable to spend longer looking at charts.

The trouble I'm having in modifying the exits is that it starts moving away from the maintenance free system I'm after. I wanted to throw this idea out there as the basic idea seems quite robust as long as there is volitility to drive some movement, and it works on the basic premise of selling weakness and buying strength. Have fun.