![]() ![]() There are many variations of the London Breakout Forex Trading Strategy but in general, their essence is to catch and follow the first impulse at the beginning or before the opening of the London session. Properties of the London Breakout Forex Trading Strategy Alternatively, you can use a script for opening OCO (One Cancels the Other) orders. When using this strategy, be sure to monitor the chart to avoid the random execution of pending orders. Plus, it works well without technical indicators. Luckily for a trader, it doesn’t require advanced trading skills. ![]() In this article, we focused on the light version of the London Breakout strategy. Plus, a too big range may indicate a strong trend or high volatility. Otherwise, we don’t enter the market because this would make the distance to pending orders too big and increase the risk of a late entry. I’d like to remind you that your price range must not exceed 70 pips. Don’t forget to close the positions, which were not activated by taking profit, at midnight the next day. We place a take profit at the Buy Limit level. As a result, a price reverses and starts to go down, which is exactly what we need. It goes up and forms a false breakout (which looks like a market maker triggering stop-loss orders one by one). Then the price behaves in a fairly predictable way. We place a stop loss of 30 pips above the sell level and 30 pips below the buy level.Īs soon as the Sell Limit order is activated, we remove the Buy Limit order. ![]() At 9 pm, we place two opposite orders 30 pips below and above the opening price of a candle. Over the period between 12 am and 9 pm, a price moved 60 pips. If the price range is more than 80 pips, this is not a good sign for entry. As soon as one of the orders is triggered, we remove the other one.Īccording to our strategy, a take profit equals the full price range and a stop loss equals to half of the price range. We set a Sell Limit at the half of the price range (1X) above the current price. We set a Buy Limit at the half of the price range (1X) below the current price. At 9 pm sharp, we place two opposite limit orders. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
February 2023
Categories |