A Simple London Breakout V.2

Just wanted to confirm if the BOX time for New york is 8 AM to 10 AM? or this is incorrect? I looked this BOX time on MT4 demo platform of MB trader.

Please let me know or if this is incorrect then how to resolve this?

Thanks for the comments and I'm glad you can get some use from the info I post for everyone. I will still glance at my Murrey strategy once in a while but have only taken very strong setups only.


I don't know what the New York box time is as this was designed for the London open, but if you know what the London open time is on MB, just add 5 hour to it and you'll have the New York open.

can this indi code into ea with trailing stop function?

sqaulou is still working on the EA, but I don't know if any trailing stop parameters are being added.

Okay, I hope everyone has been able to play around with the new version of the indicator and test out some different settings. This week I will be testing out the new indicator with some new settings to see if we can get away from the larger boxes but still keep the targets reachable without losing our profitability. First off, in the parameters, I will start by using a "LimitBoxToMaxSize" input set to True and I will be using a "MaxBoxSizeInPips" of 50 on all pairs except Gbp/Jpy, which I will use a value of 55.

Just to make things quicker, Target 1, 2, & 3 will be abbreviated as T1, T2, & T3. Black boxes are entry points, Red boxes are trades stopped on reversals, and Blue boxes are Targets (please remember that when a Target 2 is hit and price reverses back to Target 1, Target 1 is basically your Target 3 or T3 in this case since we have moved the stop).

So let's get started with last nights results.

Eur/Usd

T1= -32
T2= -32
T3= -32

Running Total= -96 pips

T1= +40 (+20 x 2)
T2= +84 (+42 x 2)
T3= +130 (+65 x 2)

Final Total= +158 pips

Gbp/Usd (Max Box Size limited to 50 pips)
T1= +31
T2= +65
T3= +100

Final Total= +196 pips

Usd/Cad (Caution due to small box size)

T1= +15
T2= +31
T3= +15

Final Total= +61 pips

Eur/Jpy

T1= +24
T2= +50
T3= +76

Final Total= +150 pips

Gbp/Jpy (Max Box Size limited to 55 pips)

T1= +34
T2= +72
T3= +110

Final Total= +216 pips

Overall a great day with only one reversal and stop out on the Eur/Usd (which still turned around for a nice profit on the recovery).

Eur/Usd- +158 pips
Gbp/Usd- +196 pips
Usd/cad- +150 pips
Eur/Jpy- +161 pips
Gbp/Jpy- +216 pips

Grand total for Monday- +881 pips

Looks like the new input has already made a difference on the Gbp/Jpy and Gbp/Usd.

One thing I noticed that we need to watch out for (see pic)

This is a great strategy, I've been using it in my live account and it works! I needed something like this and a little price action.

You the MAN!

I agree totally, of all the strategies i have tried, which run into many!! this one is the best! Thanks for sharing. Looking forward to the EA

Hello Mer,

Will it be possible to add adjustable TP and SL levels ( in exact ammont of pips ) for your system? For example T1=10 pips, T2=20 pips, T3=30 pips, SL = 10 pips.
Thanks.

Thanks guys, I don't think it is the best strategy out there, but I would consider it "Good". To be honest, if it didn't have to incorporate the martingale multipliers, which makes it a little more risky, then I would rank it up there with the top strategies.

authornumber, I don't know what size account or what lot sizes you're using but I would highly suggest not trading this live until we have tested it properly. Now, I know it's your money and you can do with it what you want, but I would feel bad if you blow a live account on a strategy that is still being tested.


We will not be do any more changes to the indicator, but to get your TP levels where you want, change the inputs of the "TP1Factor" and "TP3Factor" parameters to get your desired result. Understand though, a 10 pip TP1 is going to get eaten up pretty quick by the spreads and you're leaving a lot of pips on the table. The stoploss in totally up to the trader and with a 10 stop, you will get stopped out quite a bit and the multipliers will ramp up very quickly. There is no stoploss in the indicator, we just visually use the opposite side of the Entry Point as our stoploss. All you have to do is enter the stoploss into your trades when you place them and find a trade management EA or script to move them for you.

If you are still wanting to specific changes made, you would have to get in contact with squalou to see if he would take the time to make those specific changes to the indicator or to the EA before he gets it completed.

Will there be an option to turn off the martingale multiplier in the ea? I agree this is a great system, and it doesn't need the martingale. My biggest problem was the 3am (EST) time for the box to form. After playing around with it a bit, I've gotten good results with the e/j with a box from 5pm-11pm EST (I believe that 22:00-4:00gmt). I can place one buy order and one sell order at 11pm, then manually re-enter if necessary after 7am til noon. Max box size 75 set to true, also added break even stop at +30 for 75 pip boxes, or +25 for smaller boxes, which gave better results.

I have manually back tested this from Jan of 2009 (although admittedly there is room for human error), but it made an average of 1300 pips per month in 2009 without the martingale. This year was not as good but still profiting an average of 500 pips per month in 2010. This is only on the e/j pair, one set of 3 buy and one set of 3 sell orders opened at 11pm, and re-entries only from 7am til noon. I also tried it with every trade from 11pm til noon the next day but it was not as good.

I don't really have time to do the calculations for a martingale strategy. I do agree it can bring in higher pips overall, but you have to have a large account and start off with very small lots, to be able to cover the margin requirements (plus extra) for all the multipliers if you have a few losing trades. So even with the extra pips it might bring in, I would have to do comparisons to see if it actually brings in more money, or if it is more profitable to start with larger lots that are more in line with your account size and just take your losses when they come. This strategy seems to be very profitable without the martingale, but the box times and sizes will have be adjusted for different pairs. An ea will come in really handy for testing!

Attaching a nice script I found for placing 3 buy and 3 sell pending orders, seems tailor-made for this system.

I agree it is great system but not good for those who go to work from 7:30 am till 4:00 pm that is 03:30 am - 01:00 pm GMT. I will just miss it.

Regards

Is it possible to make an excel sheet taking into consideration equity and then calculating the lot size, projected profit etc based on risk. The sheet can be further advanced on calculating the lot size in case where stop loss is hit and we have to escalate the lot size.
This is great great strategy!!

I'm not sure if squalou is planning to make the martingale optional, but you could always message him and ask. I am glad to see you are able to use the basis of the strategy and adapt it to your own style of trading. I don't force anyone to use the martingale part of the strategy, it's just what I'd use because when it comes time to go live, I have the capital to take advantage of using the martingale safely. Remember that I mentioned before that this is not a "try to double our account every month" type of strategy, it is meant to build the account slowly, hence the smaller lot sizes.

Awesome find, thanks. I'm sure this will come in handy for those who are not comfortable using an EA.


That sounds like a great idea, but I'm clueless when it comes to excel documents and spreadsheets. If anyone wants to step up and tackle something like that, I'm sure everyone would greatly appreciate it.

Let's get started with Tuesday's results.

Eur/Usd

T1= +24
T2= +51
T3= +24

Running Total= +99 pips

Re-entry

T1= +24
T2= +51
T3= +24

Final Total= +198 pips

Gbp/Usd (Max Box Size limited to 50 pips)

T1= +31
T2= +1
T3= +1

Running Total= +33 pips

Re-entry

T1= +31
T2= +1
T3= +1

Running Total= +66 pips

Re-entry

T1= +31
T2= +1
T3= +1

Final Total= +99 pips

Usd/Cad (Caution due to small box size)

T1= -32
T2= -32
T3= -32

Running Total= -96 pips

Re-entry

T1= -64 (-32 x 2)
T2= -64 (-32 x 2)
T3= -64 (-32 x 2)

Final Total= -288 pips

All 3 Re-entry trades still active using a multiplier of 5.

Eur/Jpy

T1= -44
T2= -44
T3= -44

Running Total= -132 pips

Re-entry

T1= -88 (-44 x 2)
T2= -88 (-44 x 2)
T3= -88 (-44 x 2)

Running Total= -396 pips

Re-entry

T1= +135 (+27 x 5)
T2= +10 (+1 x 5)
T3= +10 (+1 x 5)

Running Total= -241 pips

Re-entry

T1= +135 (+27 x 5)
T2= +285 (57 x 5)

Final Total= +44 pips

T3 is still active with +135 pips locked in (+27 x 5)

Gbp/Jpy (Max Box Size limited to 55 pips)

T1= +34
T2= +1
T3= +1

Final Total= +36 pips