In this post I will be reviewing the Magic Breakout Forex Strategy. This is a manual forex trading strategy primarily to be used on the MetaTrader 4 trading platform. As the name suggests, it is a breakout strategy that puts emphasis on having good money management in place. I would always try to have a good risk to reward with wins larger than my losses. When trading forex, I would always try to cut my losses short and let my winning trades run.
Magic Breakout Trading Strategy
The Magic Breakout trading strategy is very easy to follow and has money management foundations that you can reference or use your own. Personally, I would trade the major currency pairs such as the EURUSD and GBPUSD as they can have more liquidity whilst also having some of the tightest spreads.
Furthermore, I would trade on the higher time frames, at least 1 hour and above as I tend to find that the breakouts are more obvious than the whip saws I can sometimes see on the lower time frames.
The Magic Breakout strategy includes a combination of technical indicators that aim to pin point the breakouts and filter the trend, helping to ensure that it finds breakouts in the overall trend direction. It gives you potential areas to place your stop loss which is at a point where the breakout may have failed. You can move the stop loss as the trade moves into profit, trailing your order and locking in profits. It also gives you a possible point of exit thus taking the guess work out of trading.
Trend and breakout strategies are very popular because they can work when used with good money management and filtering out ranging markets – as Magic Breakout does. It is very simple to understand and thus suitable for the beginner trader whilst also being a very useful strategy for the more advanced trader.
Magic Breakout Summary
This is a solid manual trading strategy that gives clear entry and exit signals. The indicators are easy to understand and it is very flexible as it can be used across multiple instruments and time frames thus giving plenty of trading opportunities. The package includes a very detailed instruction manual with trading examples.
It can be used stand alone and is good as it is without needing to add any more indicators to confuse things although you may want to further analyse the validity of breakouts with your own initiative and price action analysis – with consideration to current market fundamentals.
It comes with full support, detailed instructions, propriety indicators for MetaTrader 4 and a 60 day money back guarantee. If you are looking for a ready to use out of the box trend and breakout system then I you may wish to visit the Magic Breakout trading strategy website for more information and trading examples.