And no, I do not. This is a breakout strategy and this is how I trade it - simply whenever it breaks a range I follow.
You are more than welcome to alter the strategy however you see fit. If you want to add a MA or any indicator or draw lines or whatever that might help you to filter out trades.
I see this as a simple breakout, set and forget strategy and I typically don’t trade with a whole lot of indicators on my chart - was just never my style.
Do what works best for you personally. I do find though if you add in a filter of any sorts, while it can take you away from some bad and losing trades, it will take away winning trades too. Just got to find a balance.
Hi Greyton,
Not sure if i’ve replied to this already as my internet is playing up. Yes myself and another programmer enjoy working on a few EAs together, but mostly for other people rather than for running ourselves. Done over a few hundred over the past year! Hooked on it now!! This London Breakout we wrote for us to run, and we are selling this EA on MQL5 but that’s all I’ll say about that as otherwise i’ll be breaching some forum rules maybe…I’m here to share and gain ideas above all else, as we believe we can code any technicals. I personally don’t wish to be glued to the screen and be emotionally attached in managing trades so EA is perfect for me, especially with young kids and full time employment. We can also pull some fundamentals as indicators albeit harder to implement, even if just to know not to enter a trade when NFP for example (as @Cloudninee describes in his earlier post), but our London Breakout strategy is pure technicals at the moment, and rather straight forward but has all the parameters needed, to run successfully and profit from, I hope! I’ll keep posting here to let you know how I’m fine tuning the parameters and how it’s continuing to perform.
Sure @Cloudninee
You only wrote out what was in my head already to be honest and so you gave me the nudge to speed up a little. I’ve moved it 50 pips away but i like the idea of possibly positioning it near the range. I may code that in as an option Tempted to test the trailing stop as well but i’m running with Martingale switched on at the moment and so a trailing stop may not be the best combination as SL will be hit more often. Might run more than one instance of the EA just to speed up the testing. Only running MGale as it seems to have a good winning ratio, and unrealistic of having 5 consecutive losses, but of course I understand the risk this carries.
I did not place any trades yesterday due to NFP. Both my long term and short term (this strategy) strategies I try to avoid NFP. Other news are okay but I have had bad experiences in the past with NFP so I just choose to avoid it altogether - both a personal opinion as well as a personal preference thing. I know a lot of people even like to trade the NFP (scalp it etc.).
The market’s not going anywhere, skipping a day isn’t going to hurt me so it’s best to be safe, always.
@SamDavies Hey bud… I found this NY break out strat. Will test this out. But here you go if you want to test.
Awe man…I cant post links, Its a 15min candle strat…your range will be 1 hour before NY open and 1 hour after open…
I live in Brisbane as well and have a question regarding what actually constitute the last three candles BEFORE the London session opens, given that there is a one-hour overlap in the final hour of the Tokyo session and the first hour of the London session. In Brisbane time, would the three closed candles be the ones that close at 4PM, 5PM and 6PM. Please clarify as this issue has been confusing me for some time.
The 3 candles I use to determine the range are the 2PM, 3PM and 4PM candles. So at the close of the 5PM candle, essentially 6PM, I check in to see if it has broken the range. If not, I check back in the next hour and so on.
I like this strategy a lot.
Question: do you enter the trade regardless of the stop loss size or do you have a rule that if there has been a big move then avoid the trade? For example anything over 50 pips would mean the trade is avoided.
As i had seen a lot of positive comments and results from this strategy. There’s one question pop in my head . If there’s a extremely good strategy, is it possible for the broker or market maker, counter this strategy?
I have found a free EA which trades this strategy and has .set files for 9 currency pairs. If interested you can just type VFX London Breakout EA into a Google Search. I tried providing the direct link in this post but it was blocked.
I have missed the earlier chats on here so I’m unsure how the 3 hours are defined. Would be interested to know. Maybe this website helps you find the specific times for you @jatha1 if you enter Australia/Brisbane in to here: https://www.forexmarkethours.com/
Remember to bare in mind the broker time as well. It’s not rocket science but it is quite confusing never the less!
A 15min strategy - i’d be interested to know how that differs to the hour strategy and whether it can somehow complement the existing EA i’m running. Or might it conflict. Hmmmm…the debate around what time to define the range start and finish is something I’m not entirely confident on. Is there a proven best start and finish or are there conflicting views on this? The EA I’m running can do anything one wishes but it depends on the user putting in the best parameters, of course. It doesn’t look like mine will enter a trade today, for the first time, due to a volatile candle around 8am my time (GMT+1).
I wonder the same thing at times. If a strategy is very successful and becomes widely adopted, it may be evident to the market movers (if that’s a term) through seeing a huge lot size volume with pending orders in a particular direction. We’ve had customers in the past ask for EAs to be able to place lots of small simultaneous entries so to remain under the radar so to speak. He was trading large money. There are so many manual and EA strategies that I imagine it’s difficult to ensure everyone is loosing all the time so I just assume that there are winners and losers in this game, and we hope to be on the winning side, despite the odds.
I’m not too sure on that either so I don’t really have a defnite answer - hahaha. In saying that though, the market is so HUGE and the sheer amount of people trading different strategies around London open time is incredibly large, I really don’t think one particular strategy will be focused on by the broker/market maker/big banks etc. They are more concerned with the overall numbers of trades in each direction - I think.
Tempted to test the trailing stop as well but i’m running with Martingale switched on at the moment and so a trailing stop may not be the best combination as SL will be hit more often. Might run more than one instance of the EA just to speed up the testing. Only running MGale as it seems to have a good winning ratio, and unrealistic of having 5 consecutive losses, but of course I understand the risk this carries.
. If there’s a extremely good strategy, is it possible for the broker or market maker, counter this strategy?