Almost Perfect Fibonacci breakout strategy

I’ve been testing this kind of trading strategy for about 3 months in both real and demo account. The main problem of this strategy is to believe this strategy itself. With fibonacci, if all conditions are satisfied, 99% the target will be reach. This strategy works on any time frame but its recommended to use H1 or H4 only since these TF have less fakeout and why I am not recommend to use D1 or higher since its too long to wait for the trade setup and target to be reached.

The main conditions must be met are:

1. Price has made higher high on SELL signal and lower low for BUY signal. This Fibonacci breakout is a reversal strategy. So actually we buy at a low price and SELL at high price.
2. Do not use stop loss. Just use your lot management based on your account balance. Its recommend to have 1000 or 2000 USD for 1 mini lot per trade. So if you only have 100 USD on your account, you should use 0.1 mini lot on each trade.
3. Price must break out breakout line which is 100 fibo level. Do not open any trade if the price does not break this line.

Ideal BUY position

First, find and identify the most recent lower low. Make sure price has made a significant lower low. Then, when price move up and break the most recent high, it will reach the Fibo level 161.8. See my illustration below

 

OK, on the picture above, price has made 3 lower lows. How to trade it?

Draw Fibonacce retracement and make sure the 100 level is at the breakout line. I cannot explain in word but I hope the pictures above can explain more clear.

Ideal SELL Condition:

Same as buy but we need to have a clear higher high before we put a Short order.

OK on SELL condition, we must have a clear higher high and we put our order when price break the close of the low candle. I am not using the low of the candle, but the close. As always, the fibo level 161.8 is the good target.