Open Market Breakout

Open Market Breakout EA

This EA is designed to achieve high profits robustly and consistently. You can use it on your accounts or funded accounts. It is focused on maximizing profits within low drawdown values ​​to keep your account safe and to be able to meet the prop firms' evaluations.

London Breakout Strategy

The London Breakout strategy is a popular trading approach used in the forex market, designed to capitalize on the increased volatility and liquidity that often occurs at the start of the London trading session. The strategy is based on the premise that the opening of the London market (which overlaps with the end of the Asian session) often sets the tone for the day's trading.

 Key Components

1.  Time Frame:

   • The strategy typically focuses on the first few hours of the London session, which starts at 8:00 AM GMT. Traders often look at the price action from 7:00 AM to 9:00 AM GMT  to identify potential breakout levels.

2.  Setup:

   • Identify the high and low of the price range formed during the Asian session (usually between 12:00 AM GMT and 7:00 AM GMT).
   • Draw horizontal lines at these high and low points to create a "range" or "box."

3. Entry Points:

   • Buy Signal: Place a buy order a few pips above the high of the Asian session range. This is triggered if the price breaks above this level, indicating bullish momentum.
   • Sell Signal: Place a sell order a few pips below the low of the Asian session range. This is triggered if the price breaks below this level, indicating bearish momentum.

4. Stop Loss:

   • Set a stop-loss order just below the breakout level for buy trades or just above the breakout level for sell trades. This helps manage risk if the breakout fails and the price reverses.

5. Take Profit:

   • Traders often set their take-profit levels based on a risk-reward ratio, such as 1:2 or 1:3. Alternatively, some traders use technical indicators or support/resistance levels to determine their exit points.

Advantages

• Volatility: The London session is known for high volatility, providing ample trading opportunities.
• Liquidity: The overlap with the Asian and later the New York session ensures high liquidity, reducing the likelihood of slippage.
• Clear Entry/Exit Points: The strategy provides well-defined entry and exit points, making it straightforward to implement.

Considerations

• False Breakouts: Not all breakouts lead to sustained trends. Traders should be cautious of false breakouts and may consider using additional indicators or filters to confirm the breakout.
• Market Conditions: The effectiveness of the strategy can vary based on market conditions. It tends to work best in trending markets and may be less effective in ranging or choppy markets.
• Time Zone Awareness: Traders need to be aware of the correct time zones and market opening times, especially during periods when daylight saving time adjustments are in effect.

Recommended: Trade on USD/JPY M5

Parameters

    START_HOUR: Define the start of the range in hours.

       END_HOUR: Define the end of the range in hours.

CLOSING_HOUR: The hour of the day to close open positions and pending orders.

                LOTS: The lots per trade.

        SL_POINTS: Stop Loss in points.

       TP_POINTS: Take Profit in points.

      TRAIL_STOP: To use or not a trailing stop.

              MAGIC: To set a magic number to your trades.

Recommended Params

    START_HOUR = 1

       END_HOUR = 7

CLOSING_HOUR = 22

               LOTS  = 0.01 (For $100 accounts)

       SL_POINTS  = 100 (100 points or 10 pips)

      TP_POINTS  = 200 (200 points or 20 pips)

     TRAIL_STOP  = true

             MAGIC  = 61 for good profits :) 

 

The backtesting shown in the images was done with Tick Data Suite high quality data.

Disclaimer: The trading strategy presented here has shown positive results in past performance; however, past performance is not indicative of future results. Trading involves significant risk, and there is no guarantee that this strategy will yield profits or avoid losses in the future. All investments and trading decisions should be made with careful consideration of your financial situation, objectives, and risk tolerance. You are solely responsible for any trading actions and outcomes. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.

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