Here is a simple London breakout strategy based on a variation of my BoxFibo indicator from my London Progressive Strategy thread.
I simplified the indicator to place the initial entry points just between what would normally be the 27 and 38.2 fib extensions on both sides of the box. I didn't want to extend it past the 38.2 extension, although it can be feasibly accomplished, because the farther away we move our target, the tougher it is to reach the intended targets as it move in proportion to the box size. I wanted to make sure we had a higher probability of reaching our target.
The Profit Target line was carefully calculated to produce the same amount of pips as the box size. So, if your box size was 40 pips, your Profit Target lines should be exactly 40 pips from your entry point. Because of the smaller box size, this is not intended to grab a ton of pips, but to hopefully increase the success rate our trades.
You will need to place the indicator on a 15 minute chart. The start time is placed from 03:00 to 06:00 GMT, which is the 3 hours leading up to the Frankfurt open (if your broker's GMT time is not GMT +0, you'll need to adjust the times accordingly depending on your broker's GMT time). My broker is GMT +1 so I will start at 04:00 to 07:00. The obvious reason we put this before the Frankfurt open is to have the box drawn before the volatility kicks in and before the breakouts occur.
With regards to the trades that occur, you can handle them various ways. You can
A) take the first trade you get and just make one trade a night, win or lose, or:
B) take all of the trades that present themselves, it is your choice.
If you trade using option B) and still have open trades when the new box forms, you can leave the trade til it hits either you Profit Target or stops out, or you can close all open trades before the start of the new box around 03:00 GMT whether your trade is in profit or not, which is what I prefer to do so not to overlap the trades. I prefer the latter mainly because if I decide to incorporate any *Martingale type of approach, I need to know the new lot size I need to use before the next trade presents itself.
The nice thing is that you really don't see a lot of trades in a row that are losers. The most I've glanced at was 4-5 in a row, so you could experiment with a *Martingale style approach and increase lots on your losers to make up for your losses. Take 4-5 low spread pairs (i.e. Eur/Usd, Usd/Jpy, and so on) and play around with it over the next several days and over the weekend and then starting on Monday, the 12th, I will pick out a few pairs and show some examples of how the trades would have unfolded. You should see roughly around a 65-75% win ratio overall. The pairs I will be monitoring are:
Eur/Usd
Gbp/Usd
Usd/Jpy
Eur/Jpy
Usd/Chf
I highly suggest to not take trades if the box size is over 40-50 pips on all pairs. Generally, this is because a larger price movement has already occurred before the open and will make it more difficult to reach out targets. I'm not saying it's impossible, but use your common sense before you place any trades.
Good luck!
V4.0 version of the EA...
New features:
- Added Trailing Stop capability
New inputs:
TrailingStopPips(0)- pips to trail the StopLoss; when 0 no trailing is applied (fixed SL as before).
TrailingStopStep(1)- trailing SL will jump by this amount instead of trailing at every tick; (helps limit the number of sent orders, and therefore order rejections).
- Added profit lock-in after fixed profit:
"BreakEvenPips"- when "BreakEvenPips" is >0, SL is moved to BE+"BreakEvenProfitInPips" when price has reached BE+"BreakEvenPips". Works independently from "AllowHalfClose" option (but uses the same BreakEvenProfitInPips value); Will also be trailed if TrailingStop is selected; (inspired from Steve's MPTM EA...)
"MaxRisk"- if >0, then order size is the min of Lot input and calculated max Lot based on MaxRisk and Stoploss;
- All open/pending trades will be closed when the EA is unloaded;
- replaced order-related functions with "reliable" versions of them... (will retry 10 times at timed intervals if call fails).
- when MagicNumber is 0, a unique MagicNumber is created by the EA, MagicNumbers will be different for each pair/timeframes. This helps running the EA on different pairs/timeframes without having to manually change the MagicNumber.
- added Alerts when the Indicator Settings Global Variables cannot be found. The EA will stop trading in this case.
- fix: in V3.0, objPrefix default value was not set to "LB-" as it should have been, leading to error 130 "invalid stops"
London Breakout Full Trading Package.zip
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