The “classic” DailyFX PLUS Trading Signals is one of the most popular resources at DailyFX. It follows six diverse strategies and makes trading recommendations for 14 popular forex instruments. One of its strategies is called Breakout2.
Breakout2 is designed to perform best in market conditions where price is likely to move through an identified support or resistance level. When this happens, trading volume and price volatility often increase. Breakout2 attempts to capitalize on these situations by recommending to buy or sell in the direction of the breakout.
Breakout2 filters its trades with FXCM’s proprietary Speculative Sentiment Index (SSI). FXCM’s SSI is an excellent tool to gauge trader positioning and sentiment in the forex market. Using this information allows Breakout2 to fine tune its trades, making sure that price and trader sentiment are at desirable levels.
What does this app do?
The Breakout2 expert adviser (EA) is an automatic trading strategy that makes buying and selling decisions based on the trading signals generated by the “Breakout2″ strategy.
Breakout2 buys when the instrument’s price breaks above its 24-hour trading range and the SSI ratio is at or below -1.22.
Breakout2 sells when the instrument’s price breaks below its 24-hour trading range and the SSI ratio is at or above 1.22.
The trade size used by Breakout2 is always some multiple of five (e.g. 5 lots, 10 lots, 15 lots, 20 lots, etc.) because Breakout2 uses five stop loss orders and five take profit orders. Each stop loss and take profit order closes 1/5th of the trade. This money management technique is called “scaling out of the trade.”
The stop loss prices are determined by the instrument’s 24-hour high and low prices. When long, the stop loss price is equal to the price of the 24-hour low. When short, the stop loss price is equal to the price of the 24-hour high. The take profit prices are determined similarly; however, the average true range (ATR) is used instead of the 24-hour high and low prices.
Please Note: The MetaTrader 4 platform will only display the stop loss price and the take profit price that is closest to the current market price.
The following inputs are available in the EA’s properties window and can be defined by the app user:
The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results.
This Expert Advisor (EA) is only compatible with FXCM MetaTrader 4 software. It does not operate on MetaTrader 4 software provided by any other brokerage. Additionally, an FXCM account is required (including free FXCM demo accounts).
You must have Microsoft .NET Framework 4 installed on your computer. This software is included in the EA installation file.