Hey guys, I am a trading beginner and have recently started to research on London Breakout strategies. I realised that there are “1001 ways” to trade the breakout. Though most strategies are largely the same, the results seem to vary rather greatly.
Examples of LBO:
• Entry based on the high / low of the last candle before London Open. (H1)
• Entry based on the high / low of the entire Asian Session prior to London Open. (H1)
• Entry based on the breakout of the candle 30 mins after London Open (M15, M30)
Entry based on the past 6 candles before or after London Open (M15)
So I would like to see what type of strategies do you use? What kind of risk management techniques do you use and what currency pairs do you trade?
hehe
London Daybreak Strategy
ahhhh Josh Martinez who can’t pronounce the word STRATEGY instead he says STRAGI hehe
Mate, let me say it like this
dont’ give josh any money, Josh has his own interests at heart
Josh does know how to trade, so you can derive this knowledge for free from his you tube videos.
however, if you sign up to Josh Martinez course you will quickly understand that you are being groomed to work for him so to speak
he is growing his own network
he will teach you a few things and then he will teach you to scam people
now… because you have a decent amount of money invested at this point and you get that speech about how you should make your own you tube videos etc etc
which in fact teach you to lie to people because you will get commissions for referrals to josh’s program
at the end of the day mate, you are not going to be a trader, you are going to be a puppet that grows his network while you put in time to YOUR TUBE CHANNEL
it’s a con, ok
i’ll give him the fact that he understands trading
but, he has chosen to take the path of stuffing people around
it is profitable for him … sure
but do you really want to do this to people is the question you need to ask.
now to answer your question
WHICH STRATEGY DO I USE
mate, it’s completely irrelevant and would take a while to explain
but, point is… even if told you … it might not work for you
Develop your own mate
i would say do this…
watch Josh’s you tube channels and start with that strategy… TEST IT ON DEMO if it works for you
then tweak it as you see fit to create a new strategy
and for gods sake, Hope that you can actually pronounce the word STRATEGY
i mean… how dumb of him… right
you’d think that he would know that he can’t pronounce STRATEGY so why not call it the LONDON BREAKOUT SYSTEM right ? hehe
No… Josh needs to be Josh
has to choose a word that he pronounce as the name for his system… what a nob hehe
im an I.T. Engineer
if i can’t pronounce the word TECHNOLOGY might use a simpler word like COMPUTER or TECH
what idiot picks a name they can’t pronounce and then goes on you tube of all things and announces to the world that he can’t pronounce it hehe… idiot
Hey Martin_K, thanks for the reply! For most parts of it, I don’t really understand what or who you are talking about… But I’d focus on replying to the parts that I do. Hahaa.
I understand that what works for you may not work for me and is still in the midst of developing something (currently, performing backtests based on varying entries) that works well for me.
This post is to get a general sense of how the veteran “London Breakers” trade the breakout and how you guys manage the trades. Cheers!
If you skip to the 12:00 mark in the video below, his pronunciation of “strategy” sounds fine.
I don’t see the need to criticize one’s accent.
I could nitpick and point out that in many instances, you don’t properly capitalize the first letter of your sentences. And how you don’t use periods to end your sentences. And how it seems like your keyboard is broken due to the confusing usage of line breaks. But I ignore all of this and just try to read your posts.
and Joshua Martinez has THE LONDON DAYBREAK STRATEGY
Please tell me that i’ve misunderstood you and that YOU HAVE NOT GONE WITH JOSH MARTINEZ…
ok, fair enough
well. i’ll say this then
I"m not a veteran, I’m good, I’m profitable and been trading for 7 years
i wouldn’t say i’m an Expert, i wouldn’t say i’m a veteran
i doubt you’ll find any veteran’s on this site to begin with
and the next thing i’d be thinking is… if you have experienced traders like this, why would they be sharing their strategies to begin with ?
at it’s fundamentals , most experts will tell you to work out your own strategy
you will then reply by saying "i’m trying to get ideas from you guys"
they will then reply by not giving you information because
this proves that you don’t have ideas and if you don’t have ideas, how can you trade successfully ?
also no one showed us the way, we had to work everything out on our own, why are the newbies of today special and get to get given all the secrets for free… think about it
so ok
A GENERAL ANSWER (which will probably be of no use to you ) but… here it is
They watch the market and find patterns, they assess the risk at a certain time vs the reward potentially and decide if taking the trade is acceptable or not
that’s the general answer
here is a video for you
yes, it’s very basic and general, BUT MAYBE YOU NEED TO HEAR THIS… who knows
can’t hurt to watch it
go here
go to this course
it’s free, you don’t need to pay anything,
you MAY need to open a free account with trading view… I’M NOT SURE
but there’s nothing dangerous about visiting this
it’s a good listen and Lex van dam is a good trader
now… would i recommend doing the $5000 Course… hehe… Probably not
each to his own
but i’m not here for that
i’m just saying… WATCH THE FREE INTRO COURSE
i think it might give you a few ideas from a veteran
Hmm, actually I really have no idea who Joshua Martinez is. I started swing trading around July 2017 with Elliot Wave + some enhancements. Then one day, I just thought of trading the market’s open due to the volatility, started off with NY open but didn’t see much success so I explored London. I googled for London Breakout strategies to add to my intraday trading arsenal and that was where I came up with the entry conditions listed in my first post.
Please do not be mistaken - I am not asking for the “secrets” behind the strategy or ideas. As mentioned, I am in the midst of developing something that suits me, so I already have my own data on target and stops, rules on my when I will not take a trade, when an active trade expires, etc. I just want to know what other “London Breakers” take as entry (based on whatever that is already readily available on google) and the risk management technique (i.e. auto-trail, trail based on recent swing high/lows, “X” pip movement, etc.). It’s really up to the community to decide if they want to share.
But for myself, this is currently how I enter the London Break;
• Entry & SL based on the highs / lows of the past 3 candles with a 3 pip buffer prior to London Open.
• If gap between my entry and stop loss is over 50 pips, I will not take any trades.
• Trade exclusively GBPUSD on H1.
• Depending on how price move, I switch between auto-trailing and trailing based on swings.
Nothing else. Again, this information is freely available somewhere on the internet. Nothing is truly original anymore in this time and age.
So nope, I do not consider myself special. I am trying to get answers through myself AND other traders. Trading can be a lonesome journey, but it can also be enjoyable when you have buddies to trade together with.
I grew my account through researching, backtesting and forward testing rather intensively so no, there is no way I am paying $5000 for a forex course!
Knowledge can be free if you know where to acquire and it can make your trading profitable if you know how to apply that knowledge
Thanks again, really appreciate your advice though.
Hey Daggore, I’m in the midst of backtesting the LBO myself. Got 3 month worth of data for GBPUSD, GPBJPY and currently (as of now) 1 month for GBPAUD. My process is similar to yours except for entry which I specifically set after the close of 3am est time candle, i.e 10 pip buy stop order and 5 pip sell stop order of the 3 am candle.
My risk is similar to yours, as in I would not take the trade if the gap is 50 pips above as I’m aiming for a 50 pip profit for every trade.
The results for the 3 month worth of data came back positive for GBPUSD and GBPJPY.
GBPUSD performs very well for my trading strategy, with 200+ pip gains monthly (for 3 months).
GBPJPY performance was relatively ok, +700pip gain the first month, +400 the second, but -90 the third month. Now, that might seem great (+700 gains, woahh), but the problem with this pair is the wild swings that occurs. The second month particularly had 12 missed trades due to SL being above 50. The third month was a losing month, so consistency is a problem as well. Overall, this pair gives you wild swings and less trade due to risk.
GBPAUD is in progress, but so far its not looking good. First month had a -200 pip loss. The reason was because of the abundance of occurring ‘fakeys’. So, might need to tweak the strategy.
That’s it for now. I guess if someone wants to start trading LBO, start with GBPUSD. It’s consistent, so far.
It’s nice to hear that someone is on the same train as me!
Hey Daggore, I’m in the midst of backtesting the LBO myself. Got 3 month worth of data for GBPUSD, GPBJPY and currently (as of now) 1 month for GBPAUD. My process is similar to yours except for entry which I specifically set after the close of 3am est time candle, i.e 10 pip buy stop order and 5 pip sell stop order of the 3 am candle.
I hope I am understanding this right, you take a +10 pip buffer from the 3am candle close high with SL at the low for a buy stop order; a -5 pip buffer from the 3am candle close low with SL at the high for a sell stop order?
Is there any particular reason for such interesting buffer?
The results for the 3 month worth of data came back positive for GBPUSD and GBPJPY.
GBPUSD performs very well for my trading strategy, with 200+ pip gains monthly (for 3 months).
Agreed, that’s why I trade only GBPUSD and nothing else. However, I am in a bit of a drawdown lately. Gotta take note on DST and all though. Based on what I went through, the market will take some time to get “accustomed” to the DST change.
If you’d like, we can further this conversation and exchange pointers!
I did not test it long enough to have a conclusive result, but I didn’t see much improvements in results when I did use it. Have you tested with one though?
Furthermore, I think LBO is “dead” in a sense, considering that this strategy banks on the volume of orders during the London Open - recent months have shown very weak volatility and volume during the London Open, which either results in a false break or non-event. Well, it’s not working out for me at least.
Would love to hear feedback from anyone still testing or using any LBO strategies…
Lol I regret reading your last paragraph, I’ve just now found the London breakout strategy and to read that it’s not working hurts do you have any updates about it?
Or what’s strategy do you use now for success? Like you said before im not looking for your secrets just tell me the name or point me in the right direction
do you have any updates about it?