How I Trade The London Breakout Strategy

Interested whether you manually exited any of the losses @jota9913?
Was there any consistent average R:R or was it based solely on a maximum potential loss of 30 pips, gunning for the 20 pip upside each time?

Another question was that you mentioned you’d updated the strategy since the initial post, has much changed since you posted this?
In my backtest of August/September on the GBPJPY this had some pretty incredible results. Only a backtest, will be forward testing shortly.

I haven’t closed any positions manually, only if there are some big big news coming and I really don’t want to deal with the volatility.
I’m using an rr of 1:3 when the range is small to medium, and using an rr of 1:2 when the range drawn is bigger than usual.
I was going to update the strategy but I’ve since started coding with MQL5, and started developing this strategy as an EA, not only to backtest more efficiently, but to trade it automatically without emotions or any human erros.I’ll probably end up doing a video but I really want to get the EA completely done without any failures.
The backtests are promising though, so It might be worth it to forward test it by now.

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Nice one, very glad to hear that you’re still on the case. Man I had some more questions but can’t remember right now.
Off the back of your reply, is there a numbers-based way you’d determine whether the range was either small/medium or in the large category (via ATR etc)?
I can understand the move to the EA, from the tests I’ve done it does seem to be very promising but does require you to be on the ball.
Before you started looking into the EA, can I ask how you were hitting the orders on the exact start of the next bar? - Was it just a matter of timing e.g candle closes at 9:15 and you’re right there watching it close hovering over the market order button?

If you have any other questions you can contact me directly via email (forextradingkeptsimple@gmail.com) or via Instagram @vanguardtradingfx

I’m still looking for a way to determine if the range is too big or small, so once I have something that really works I’ll update it in the video.

Well I would place two alerts on both sides of the range, and when an alert was hit, per example on the lower range side, I would go on the charts each 15 minutes to check if the breakout happened. It sucks doing it this way, thats the main reason why I’m coding the EA ahah

Basically use alerts to your advantage on TradingView

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Hey @jota9913, I recently discovered your way of trading this system and it intrigued me. It seems to be promising in the short backtesting I have done. Is it correct that your strategy of placing 2 trades would be the same as closing 50% of one trade at 1R and moving SL to break even, and then trailing the SL?

Are you still trading this strategy, and how is it going now?

Hi @jota9913. I was just wondering how you handle situations where there’s a false breakout that doesn’t hit the initial TP of 20 pips, the 2nd order would never have a SL or TP set. From what I understand the result would be that one order would hit the SL at the range mid, the other (no SL or TP) would then be closed at the end of the day.

So essentially this:

image

I like the idea of the London breakout strategy, when it works, but a loss of 70 pips hurts. You could set the SL of the 2nd order to the mid as well, emergency scenario. That would reduce your loss to 60 pips, still rather painful.

I thought about closing both if a bar closes back inside the range but you then could be closing orders that return to a breakout and continue to profit, like this one:

image

Thanks for any feedback you can give!

S.