How I Trade The London Breakout Strategy

Hi everyone. I’ve just uploaded a video introducing my way to trade the London Breakout Strategy, with a little “trick” so you don’t get caught in false breakouts.
Obviously, every system has its flaws and sometimes it doesn’t work, but I’ve had consistent results with hit, also, backtests show a nice winrate and risk reward ratio.
Here is the link - https://youtu.be/wc9YGk7Ju-4

Don’t take this strategy for granted, do your own backtest and demo trading before risking your real money on it.
Lots of profits to you all!

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Brother this one kills! Thanks a lot, I’ve done all the back test and I’m waiting to get on it today on my demo then to live.

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Im currently backtesting in gbpusd, gbpjpy and eurgbp on the full month of february. Once I have all the results I will make another video on it. Glad you like it! This week was crazy for this strategy aswell, LOTS of volatily and true breakouts formed.

So I’ve just backtested this strategy with the GBPUSD pair on the month of February, and got almost a 70% winrate, with 623 pips of profit. Still gotta do it for EURGBP and GBPJPY, but i’m happy with the results already.Capturar

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hi Jota… Logic approach and greate results… congratulations… but could you please apply this backtest for 2018 and 2019 different months?? becouse, as you know, thesedays are market is so liquid, values are changing dramaticly… let’s see if this strategy works in the slow or less moving makets or periods… lets see if this strategy works with less liquid times of market…

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Yes! Just let me know a month you would like me to test it. I’ve been actually trying to find a way to introduce the atr indicator so it measures the volatility, for better placing for stop losses and trailing stop, but by know I’ll stay with what I’ve got. Just let me know a month you would like me to test this!

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Lets say april and august 2019… As i see on Monthly chart, there are the smallest candels… So i thought that little movemens happened on these Months…

Hi , I’m from Slovakia and I Have utc +1, so my range is from 1:00 to 7:45 ?..,

Hello! Yes, I think its from 1 am candlestick to 7:45 candlestick

Okay, thank you , and you use any indicator or not?, only break the rectangle and go to Trade ?

I don’t use any indicator, just price action. I’ve actually found a better way to trade this strategy, since the market is very volatile, the 20 pips are not worth in the long term. Im preparing a video to release today or tomorrow, so you might want to check that out.

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Thank you man :fire:, i check the video :), and look this is my Trade from today

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I’m in that trade too! Yesterday was a horrible day to trade this on EURGBP and GBPUSD, but today on EURGBP its being awesome. Congrats!

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Yes , Yesterday i’m hit stop loss on gbpusd…, and you Trade this Breakout strategy only with trend ? For example gbpusd long uptrend few days and if your rectangle range break to the downside you go to Trade or not, Because is uptrend … so I think about it …

I use the 1 hour chart to look for entries and possible Support and Resistance levels, but I don’t ignore counter trend trading signals, I’m just a little more careful on those and place the stop loss and take profits a little bit tighter.

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Hi man, today you drop the video about this strategy ? :slight_smile:

Hi man , you know how to Trade new york session too ?:slight_smile:

Hey Jota, thank you very much for sharing your strategy and back-testing results! I know it takes a lot of time to do. I’m already subscribed to your channel.

I’m currently back-testing the London BO with different parameters (TP/SL/TS) on different pairs since the beginning of 2020. So far I’ve had great results with GBPUSD and GBPJPY. I just place the long/short trade in a TradingView 1H chart and then analyze the trade.

So far I’ve had success with 50TP/30SL/10p TS once I hit 30 pip profit and 30TP/20SL without TS. Both have yielded similar results.

I am planning on continuing to back-test different parameters for this strategy to find the optimal entry and exit rules and would like to know if you would be interested in creating a shared google docs spreadsheet for a collab back-test which we could then publish here. I don’t mind at all if the shared results are published by your acct, I know you are trying to build a YT channel also, so this could be of help.

If you are interested, just chat me up at https ://t. me/ hjamesf (please remove the spaces) I can also share with you the TV chart of my backtesting results so far. The idea is to put in some hours to test the major GBP pairs as well as the EURUSD from Jan '20 to May '20 with different entry and exit rules to see what works best.

Hope you and your family are well in this difficult time.

Kind regards,

James.

Hey Jota, I just wanted to give you a shout out and say that this strategy is GOLD! I have been trading the London Breakout for sometimes now using an alterted strategy I have whiped up. This however has been working absolutely fine and solved my problems of a false breakout days which can happen quite often during the London session. Some days you only catch 20 pips, some days are breakeven but some days are hundreds of pips to be caught.

Just wanted to say thanks for sharing and wishing you all the best!

I do have one question though, when there is a false breakout and the price reenter the Asian session range, do you enter 2 trades then as well with the first TP at 20 pips exactly the same with the initial trades?

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Hello!

Sorry for this LATE LATE response, I’ve been busy with a lot lately and I completely forgot about this post.

In the second trade, I place the first tp on the other side of the range. So imagine there is a short trade in the first breakout, if it hits the stop loss, I place the first tp of the second trade on the range high, and the other one I trail stop it.

Hope I got your doubt clear. Regards, João

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