London Open Breakout Strategy (Looking for other LOB Traders)

This is my London/NYC breakout strategy; I’m looking for London Breakout traders who have a similar strategy I want to hear if you have anything to say.

  1. Find Up or Down trends. (1H)
  2. Find a thin horizontal range that makes up for the whole Asian session. (1H)
  3. Create Ultra Conservative rectangle box, that sometimes might include the previous NYC highs or lows (1H)
  4. Wait for Strong breakout of the rectangle (5M)
  5. Buy @ Market (No Limit/Stop entry orders)
  6. Monitor 1M for the close of position
  7. Trail position with a stoploss every time structure is broken to the direction we are profiting

Risk 1-2%, with a stoploss of 25 pips. Usually, I’ll only let a trade go against me 12.5 pips (1%)

Do not add to position, on any given night we could make up to 10%, without adding.

When you are dealing with an actual trend this is what you should actually see.

Hi and welcome,
The examples show what is supposed to happen. Can you include other examples of a choppy market and false breakouts? Have you backtested this model, and been able to provide any statistical data that shows, for example, % wins and % losses, target TP% and actual TP%s, distribution and net profit / loss for set TP and SL levels?

I’m showing you how the strategy should work, but you want me to show you how it wouldn’t work. You want examples of a choppy market, but you shouldn’t be in a choppy market. False breakouts happen but it’s already been proven that more often than not a false breakout won’t happen. If the opposite was true, then the London breakout strategy wouldn’t be as renown as it is.

Sounds like you want proof but I’m not here to prove anything.

I’m looking for London Breakout traders who have a similar strategy and who want to share their 2 cents.

No, you are not here to prove anything but for other members to get any value from your post, they should be asking such questions and expecting answers that do not appear to be defensive.

When you say you should not be in choppy markets, does that mean your plan is valid about 20% of the time and not to be used about 80% of the time? And what entry criteria do you use to “know” the market is trending that day instead of about to be choppy? That is why I asked have you backtested and does your plan have a system expectancy. Not awkward questions, really. Should be included in any trading plan.

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