Another London Breakout method | Forex Factory

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Another London Breakout method

  • #1
  • First Post: Edited Jul 26, 2010 3:41am Jul 22, 2010 9:57am | Edited Jul 26, 2010 3:41am
This is another London Breakout method.
There are similar methods here on Forex Factory but I prefer open a thread in order to not generate confusion. Any suggestion on how to improve the method is welcome.

I’m using this method on EUR_USD and GBP_USD with 1H charts.
I’m using a demo Interbank FX platform with 5 digits.

These are the rules:

· Long Breakout level: the highest high from 3.00 GMT bar to 6.00 GMT bar (4 bars) + filter.
· Short Breakout level: the lowest low from 3.00 GMT bar to 6.00 GMT bar (4 bars) – filter.
· Default filter is 2 pips on both sides

Entry the trade if these levels are broken starting from 7.00 GMT to 15.00 GMT.

· Stop level for long trades: Short Breakout level – filter.
· Stop level for short trades: Long Breakout level + filter.
· Default filter is 2 pips on both sides

· Long Trailing Stop: lowest low on the previous 2 bars.
· Short Trailing Stop: highest high on the previous 2 bars.

No take profit.

Close all residual trades @ 21.00 GMT (@ 19.50 GMT on Friday).

Money Management: 1% risk every trade

Please see attached my demo trades from Monday 19.

See attached expert advisor and infos on how to use it.
Attached File(s)
File Type: zip 4 digits.zip   4 KB | 1,641 downloads | Uploaded Jul 26, 2010 3:41am
File Type: zip 5 digits.zip   4 KB | 1,777 downloads | Uploaded Jul 26, 2010 3:41am
  • #2
  • Edited 10:16am Jul 22, 2010 10:01am | Edited 10:16am
Here are the rules to use my expert adivsor for this method.

ü Big_Dog.mq4: insert this file in the “Expert” folder
ü Lots_Long.mqh: insert this file in the “Include” folder
ü Lots_Short.mqh: insert this file in the “Include” folder
ü Punto.mqh: insert this file in the “Include” folder

· Box: you can define how many bars to consider, from 6.00 GMT. Default is 4, so I consider 6.00 GMT, 5 GMT, 4 GMT, 3 GMT.
· Start_Trade: default is 7 GMT, London open.
· Stop_Trade: default is 15 GMT. I choose this hour because the last economic data are usually realised @ 14 GMT and I give to the cross another hour to break or not the box, if needed.
· Close_Trade: default is 21 GMT, when the US session is closed (on Friday trades are closed @ 19.50 from the expert).
· Filter In: 2 pips ad default. I apply this filter to the breakout levels.
· Filter Out: 2 pips as default. I apply this filter to the stop level.
· Risk: my default is 1% every trade but you can customize.
· Fixed_Lots: you can decide how many lots to trade, leave 0 if you want to use the fixed fractional method with a fixed % risk.
Attached File(s)
File Type: mq4 Big Dog.mq4   9 KB | 1,362 downloads
File Type: mqh Lots_Long.mqh   2 KB | 1,150 downloads
File Type: mqh Lots_Short.mqh   2 KB | 1,085 downloads
File Type: mqh Punto.mqh   < 1 KB | 1,162 downloads
  • #3
  • Jul 22, 2010 10:11am Jul 22, 2010 10:11am
These are my trades from last Monday.
Attached File(s)
File Type: xls Breakout.xls   16 KB | 1,622 downloads
  • #4
  • Jul 22, 2010 10:15am Jul 22, 2010 10:15am
Nice trades on EUR_USD in this period
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 23 KB
  • #5
  • Jul 23, 2010 2:07am Jul 23, 2010 2:07am
hi!

i like your trading breakout method,

bigdog ea ,can you explain why it is used .whether it will place trade for us.
  • #6
  • Jul 23, 2010 4:31am Jul 23, 2010 4:31am
Hi, the expert can trade for us. It's important to attach it on the graph before 7.00 GMT, so it is able to determine the breakout levels.

Please follow the instructions I wrote in previous post to save the files in the right folder.

If yuor broker is 4 digits you must delete a zero in the Punto.mqh file and use 2 instead of 20 as filter in and out in the expert options.
  • #7
  • Jul 23, 2010 4:42am Jul 23, 2010 4:42am
Will try it.
Thanks.
  • #8
  • Jul 23, 2010 7:47am Jul 23, 2010 7:47am
Done for this week, see the attached summary.

Please note that I choose to start with $ 500: the system allows me to trade only 0.01 lots at the moment.

Today small pips on EUR_USD and a good trade on cable.
Attached File(s)
File Type: zip London Breakout.zip   597 KB | 2,409 downloads
  • #9
  • Jul 23, 2010 5:45pm Jul 23, 2010 5:45pm
Hi,
Just a question that where are we supposed to save the EA files.
  • #10
  • Jul 24, 2010 2:13am Jul 24, 2010 2:13am
Quoting jillsaab
Hi,
Just a question that where are we supposed to save the EA files.

Here are the rules to use my expert adivsor for this method.

ü Big_Dog.mq4: insert this file in the “Expert” folder
ü Lots_Long.mqh: insert this file in the “Include” folder
ü Lots_Short.mqh: insert this file in the “Include” folder
ü Punto.mqh: insert this file in the “Include” folder

remember that you must compile the Big_Dog.mq4 in the editor

If you use a 4 digits platform please use the attached Punto 4 decimals.mqh instead of Punto.mqh
Attached File(s)
File Type: mqh Punto 4 decimals.mqh   < 1 KB | 912 downloads
  • #11
  • Jul 24, 2010 3:50am Jul 24, 2010 3:50am
Quoting Alberto_Jazz
Here are the rules to use my expert adivsor for this method.

ü Big_Dog.mq4: insert this file in the “Expert” folder
ü Lots_Long.mqh: insert this file in the “Include” folder
ü Lots_Short.mqh: insert this file in the “Include” folder
[font=Wingdings]ü...

Does the EA takes care of Broker timezone? I am using Liteforex Broker which has +3 GMT TimeZone. So should I add 3 to all the time related inputs?

Thanks,
Prakash
  • #12
  • Jul 24, 2010 8:15am Jul 24, 2010 8:15am
Quoting reachjj
Does the EA takes care of Broker timezone? I am using Liteforex Broker which has +3 GMT TimeZone. So should I add 3 to all the time related inputs?
Yes, you can modify external variables Start_Trade, Stop_Trade and Close_Trade adding 3 hours to the default GMT values.
  • #13
  • Edited 9:02am Jul 25, 2010 8:37am | Edited 9:02am
Hi Alberto

I use GoMarkets and I think it starts at GMT+2 for the day.
So to use your London Break, what is the "time" I should set and look upon?
Thanks for the pointer.
P.S. I am (a newbie) not use to GMT.

tpat
  • #14
  • Jul 25, 2010 10:16am Jul 25, 2010 10:16am
EA producing bunch of "ZERO DIVIDE" errors while small backtest.
Viewer Discretion Advised: Shall we shag now or should we shag later? :-)
  • #15
  • Jul 25, 2010 11:08am Jul 25, 2010 11:08am
Hi Alberto

As I am new and do not know anything about EA.
Perhaps I can do your London Break using manual (mechanical).

Based on your given chart, can you pls. tell me what is the 'time' in gmt for the candlestick pointed by yellow?
By the way Interbank starts the "time" for the day with GMT + what?
(P.S. Pls. ignore the red arrow)

Thanks
tpat
Attached Image (click to enlarge)
Click to Enlarge Name: EU H1.jpg Size: 185 KB
  • #16
  • Jul 25, 2010 2:48pm Jul 25, 2010 2:48pm
Quoting tradpat

Hi Alberto

I use GoMarkets and I think it starts at GMT+2 for the day.
So to use your London Break, what is the "time" I should set and look upon?
Thanks for the pointer.
P.S. I am (a newbie) not use to GMT.

tpat
Hi, you should add 2 hours to the default values, so your start_trade variable will be 9 and so on.
  • #17
  • Jul 25, 2010 2:50pm Jul 25, 2010 2:50pm
Quoting SkyzerFX
EA producing bunch of "ZERO DIVIDE" errors while small backtest.
Are you using a 4 digits platform?
  • #18
  • Jul 25, 2010 2:55pm Jul 25, 2010 2:55pm
Quoting tradpat

Based on your given chart, can you pls. tell me what is the 'time' in gmt for the candlestick pointed by yellow?
By the way Interbank starts the "time" for the day with GMT + what?
Hi, Interbank FX uses GMT reference.
I consider the following bars: 3 GMT, 4 GMT, 5 GMT, 6 GMT.

@ 7.00 GMT (when the last bar is complete) the expert calculates the highest high and the lowest low on these bars: these are the breakout levels.

Hope this helps.

p.s. I'll try to prepare a clearer guide in the next days.
  • #19
  • Edited Jul 26, 2010 7:04am Jul 25, 2010 5:43pm | Edited Jul 26, 2010 7:04am
Quoting Alberto_Jazz
Hi, you should add 2 hours to the default values, so your start_trade variable will be 9 and so on.
Thank you.

Quoting Alberto_Jazz
Hi, Interbank FX uses GMT reference.
I consider the following bars: 3 GMT, 4 GMT, 5 GMT, 6 GMT.

@ 7.00 GMT (when the last bar is complete) the expert calculates the highest high and the lowest low on these bars: these are the breakout levels.

Hope this helps.

p.s. I'll try to prepare a clearer guide in the next days.
I appreciate your time to reply. I will try it manually.
Thanks.

tpat
  • #20
  • Jul 26, 2010 2:04am Jul 26, 2010 2:04am
What is "zero divide" mistake? 'm using 4 dec broker
Aut cum scuto, aut in scuto
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