A Simple London Breakout V.2

Usd/Cad

Breakout

T3 trade closed from Thursday.

T3= +114 (+57 x 2)

Running Total= +114 pips

New entries made with no multiplier as T3 trade closed before the new box was completed.

T1= -50
T2= -50
T3= -50

Running Total= -36 pips

Re-entry

T1= -100 (-50x 2)
T2= -100 (-50 x 2)
T3= -100 (-50 x 2)

Running Total= -336 pips

Re-entry with a multiplier of 5

T1= -250 (-50 x 5)
T2= -250 (-50 x 5)
T3= -250 (-50 x 5)

Final Total= -1086 pips

New BO trades will placed with a multiplier of 13.

Counter Trend

New CT trade placed with a multiplier of 5 from Thursday.

T1= +250 (+50 x 5)

Running Total= +250 pips

Re-entry

T1= +50

Running Total= +300 pips

Re-entry

T1= +50

Final Total= +350 pips

Next CT trade will start with no multiplier.

Eur/Jpy

Breakout

New BO entry will use the same multiplier of 2 from Thursday.

T1= +62 (+31 x 2)
T2= +130 (+65 x 2)
T3= +200 (+100 x 2)

Final Total= +392 pips

New BO trades will be placed with no multiplier.

Counter Trend

New CT trade will start with a multiplier of 2 from Thursday.

T1= -62 (-31 x 2)

Final Total= -62 pips

Next CT trade will start with a multiplier of 5.

Gbp/Jpy

Breakout

T2 & T3 trade closed from Thursday using a multiplier of 5.

T2= +5 (+1 x 5)
T3= +5 (+1 x 5)

Running Total= +10 pips

New entries were made using a multiplier of 5 as they opened before the T2 & T3 trades above were closed.

T1= +160 (+32 x 5)
T2= +340 (+68 x 5)
T3= +160 (+32 x 5)

Final Total= +670 pips

New BO trades will be placed with no multiplier.

Counter Trend

New CT trade will start with a multiplier of 2 from Thursday.

T1= -64 (+32 x 2)

Final Total= -64 pips

Next CT trade will start with a multiplier of 5.

***Correction- Post #237's Grand Total is for Thursday, not Wednesday. My apologies as I was too late to be able to correct it


Breakout

Eur/Usd- +127 pips
Gbp/Usd- -150 pips
Usd/cad- -1086 pips
Eur/Jpy- +392 pips
Gbp/Jpy- +670 pips

Grand total- -47 pips

Counter Trend

Eur/Usd- -62 pips
Gbp/Usd- +100 pips
Usd/Cad- +350 pips
Eur/Jpy- -62 pips
Gbp/Jpy- -64 pips

Grand Total- +262 pips

Grand total for Friday- +215 pips

Totals for the week

Breakout

Monday- +10,348 pips
Tuesday- +1300 pips
Wednesday- +1975 pips
Thursday- +37 pips
Friday- -47 pips

BO Total= +13613 pips

Counter Trend

Monday- +91pips
Tuesday- 382 pips
Wednesday- -1546 pips
Thursday- +7468 pips
Friday- +262 pips

CT Total= +5893 pips

Grand total for the week- +19506 pips

It definitely looks like we have a good reason to look into adding the Counter Trend trades to the Breakout part of the strategy. As I mentioned in earlier posts, I have been looking into a 3 tiered version of the CT part of the strategy as well. I would like to go another week with just using the basic single trade version we're using now to make sure it wasn't a fluke and then we will go from there.

Hello mer,

I've been reading your thread since the start and find it very interesting. I also find a lot of what you are doing goes against my knowledge of trading. Now don't take that wrong as we all have our own ideas. The thing I like about your system is it's very visual and not overloaded with indicators. The thing I don't like is the lack of any indicator. As far as using a martingale system that's up to the trader and I won't comment on that part.

Would you mind me taking this system on another thread for discussion? I'm not looking to take over your ideas but just discuss other options and of course your ideas and discussion would be welcome as well. Please let me know.

Johnny

Hey, I have no issues with anyone discussing any of my strategies and I appreciate you having the courtesy to ask.

I used to be one of those guys that had to have a million indicators on my charts until I realized that 95% of them are lagging in relation to price. I have since dropped using indicators for the most part except for one or two leading indicators like RSI or Stochastic.

What I like about breakout strategies is that they're success is based upon price action and the indicator's levels are based on Fibonacci levels and extensions. If anyone wants to learn more of the basics on price action, read the James 16 chart thread or if you want to learn more on Fibs, read Bobokus' thread of Fibonacci trading.

Dear traders,

Please do not misunderstand me, I find this thread very well.
I am going to use it the coming week my self on both M15 and Renko 7 pips boxsize.
The only thing I want to show with Renko charts is that this gives a quieter picture of a price movement compared to time frames where every x-minutes a candle is formed, even if the price moves are not significant.

I attached two charts for you to clarify this.
I have no desire to start an own thread on that and believe that it is not necessary. I wanted nothing but to give my contribution on this beautiful thread.

Kind regards, Gilbert.

I know you have good intentions here and there are some very positive points to be made using Renko, but this is not the place to do it. What your showing is a vastly different concept and really should be placed in it's own thread and I would appreciate it if you would.If there are those who are interested in the way you trade this with Renko, and I'm sure there are, I'm sure they will follow you. The only changes I'm interested in are changes to the indicator in post #1 that could be improved upon, like sqaulou's idea of reworking the indicator and using it with the counter trend. Now if you still have no desire to open a thread, then please just follow along and trade the way you want on your own as I'm not interested in adding a Renko indicator to this strategy, sorry.

Gilbert,

Using RENKO or not, doesn't really matter in my opinion. It isn't really showing the true price anyways, due to 'no tails' showing. I suggest you change your renko to showing tails and I think you get a clearer picture of true price action. I agree that RENKO is cleaner. But, it could also confuse people who are not as advanced as you are and I believe that MER is trying to make this simple as it is more fun that way from all the indicator crazy threads.

Hi guys,


the so awaited EA is finally available now, here !

Attached is the EA that you should put in your (mt4)/experts folder.
And its User's Guide in text format, that i reproduce here.

Now you can start backtesting, tuning, squeezing, tweeking, whatever-ing...

Please run some SERIOUS backtests before starting using the Martingale option.
You will soon discover that it is very nice during 99% of the time, giving a very smooth-looking and PROFITABLE outcome, but... that 1% remaining time, it will just KILL YOUR ACCOUNT...


Enjoy...



============================





//+------------------------------------------------------------------+
//| 3 Tier London Breakout.mq4 EA, by Squalou
//| User's Guide
//+------------------------------------------------------------------+


This EA trades the "3 Tier London Breakout" strategy posted by mer071898 on forexfactory.com
thread http://www.forexfactory.com/showthread.php?t=247220

=======================================================================
* Visual help with or without the "3 Tier London Breakout.mq4" indicator:
=======================================================================

This EA can be used along with the "3 Tier London Breakout.mq4" indicator for visual help.
The Indicator will draw the breakout box and TP levels for a given number of days in the past.

The EA can also be configured to draw the breakout box and TP levels by itself, but it will do it only for "today",
and will draw new boxes&levels formed at the beginning of each new session.
However, it will not draw box/levels for the days prior to the time you started the EA.

=======================================================================
!!! SERIOUS WARNING !!!
=======================================================================

As a security, when running this EA without changing any inputs, this EA is LOCKED and will NOT send any trades.
This is to prevent silly "blindly-load-and-run-and-get-burned" kind of negligent behaviour...
First, you MUST understand how the strategy works, as it is explained in the thread;
Second, you need to read this User's Guide to understand how to setup the EA inputs, and how to unlock it to allow it to trade.
Then it is recommended to use the EA on a Demo account for backtesting and forwardtesting,
in order to get familiar with the use of the EA and its inputs;
Only after these steps, you can start using it on your live account, AT YOUR OWN RISK.


=======================================================================
* EA Input parameters:
=======================================================================

extern bool SendTrades = false;
You must set this to true if you want the EA to place trades;
By default, the EA will NOT send trades, but only show indicator's boxes and fibs (if "ShowBoxes" is true)

extern double Lot = 0.01;
number Lots to use for each open trade;

extern double MaxRisk = 0;
Risk management:
MaxRisk is used only when not using the Martingale options;
It is the percentage of the account free margin that will be used to compute the size of the open orders
depending on the stoploss level;
if MaxRisk is 0, then the size of open orders will be "Lot";

extern int MagicNumber=0;
the MagicNumber value to be used when opening orders;
The EA will open 3 trades at a time, each trade will have a different MagicNumber, as follows:
magic number for trade #1 = MagicNumber;
magic number for trade #2 = MagicNumber+1;
magic number for trade #3 = MagicNumber+2;
MagicNumbers are used by the EA to handle its trades,
so it is important to set this value so that they will not interfere with other EA's trades.
In particular, you must use DIFFERENT MagicNumber ranges when rnuning this same EA on DIFFERENT PAIRS;
When "MagicNumber" is 0, the EA will create a unique MagicNumber range for the current chart/pair;
Running multiple EA on different pairs, all with MagicNumber" set to 0 ensures that all trades will have different MagicNumbers.

extern string StartTime = "06:00";
time for start of breakout box;

extern string EndTime = "09:14";
time for end of breakout box;
Setting the minutes to ":14" ensures that the "last" 15-minutes bar is being included in the box when rnuning the EA
on a timeframe lower than M15, which is the timeframe suggested by the startegy.
By setting the minutes to ":14", you can run the EA on M1 or M5 charts, and still get the same box and levels as if you were
running it on the M15 chart.

extern string SessionEndTime= "01:00";
End of daily session: no new trades will be open after this time;
However, the EA will continue to take care of trades that were opened before this time, and which are still open;
They will remain open until they either reach their TP or SL.
The EA will continue handling the jumping stop on these trades until they close.

extern int MinBoxSizeInPips = 25;
minimum tradable box size in pips (not Points);
when the box is smaller than that value, the EA will NOT send trades during this session;

extern int MaxBoxSizeInPips = 50;
maximum tradable box size in pips;
The EA will either not trade when the box is larger than that value,
or limit the box size to that value, depending on the "LimitBoxToMaxSize" input below;

extern bool LimitBoxToMaxSize = true;
when true, a box larger than MaxBoxSizeInPips will be limited to MaxBoxSizeInPips,
and centered on the EMA of the price during the box time range.

extern double TP1Factor = 0.618;
the factor applied to the box size to determine the TP target for Trade #1 (TP1).
TP1 is the box edge +/- TP1Factor * box_size;
Example: if the bow size is 32pips, then:
TP1 for Buy is box High + TP1Factor * 32pips;
TP1 for Sell is box Low - TP1Factor * 32pips;

Extension to the strategy:
--------------------------
TP1Factor can be set to be a FIXED PIP value rather than a factor of the box size;
When TP1Factor is >=10, it is considered as a FIXED PIPs value to be applied to the box edges;
Example: with TP1Factor set to 30:
TP1 for Buy is box High + 30pips;
TP1 for Sell is box Low - 30pips;
whatever the box size would be;

extern double TP3Factor = 2.000;
this is the TP factor for Trade #3 (TP3);
The same principles apply as for the TP1Factor input;

Note: trades are sent by bundles of 3 trades, each having a different TP:
Trade#1 has TP1 target,
Trade#2 has TP2 target,
Trade#3 has TP3 target;
There is NO TP2Factor input;
TP2 is automatically set to be at half-way between TP1 and TP3;

extern double SLFactor = 1.000;
this is the StopLoss factor for all trades;
The same principles apply as for the TP1Factor input, except that it is a stoploss value;

extern double LevelsResizeFactor = 1.0;
this factor is applied to all TP/SL factors;
this can be used to widen or narrow all TP and SL values by the same factor;

extern string TradeComment="3 Tier London Breakout";


extern int MaxTradesAllowedPerSession=0;
Maximum number of 3-trades-series that can be open per session (re-entries);
A value of 1 means there will be only 3 trades open during this session (1 series of 3 Trades);
When MaxTradesAllowedPerSession is 0, there is no limit on the number of trades open per session;

extern int MaxLossesAllowedPerSession=0;
Maximum number of lost 3-trades-series per session;
A value of 1 means the EA will not open new trades after 3 lost trades on this session;
By the nature of the strategy, all 3 trades of series will end either all in profit, or all in loss;
When MaxTradesAllowedPerSession is 0, there is no limit on the number of losses per session;

extern int BreakEvenProfitInPips=1;
number of pips to lock-in when moving the SL to BE;
Trades #2 & #3 are moved to BE+BreakEvenProfitInPips when TP1 is reached
(Trade #1 should have reached its TP, unless the spread is high);


extern string martingale_sequence="0,1,2,5,13,34,89,233,610,1597,4181";
MARTINGALE multipliers sequence;
when the first multiplier of the sequence is 0, the Martingale is DISABLED;
In order to enable the Martingale sequence, you should remove the trailing "0,";
After a lost series, the size of the next open trades will be determined by the next Martingale multiplier,
in order to try to recoup the losses;
The Lot multiplier will continue to increase until the losses are COMPLETELY recouped;
When the highest multiplier is reached, it is used for all new trades until the losses are COMPLETELY recouped;


extern bool AutoMartingale=false;
Auto-martingaling mode:
When true, the Lot multiplier will be calculated so that the losses are recouped, and will add the current TP,
instead of picking the multiplier in the sequence;
This should make the Lot multiplier increase more smoothly, but there is NO LIMIT to the multiplier value,
which may become VERY HIGH and produce VERY HIGH RISK in the case of a high number of concecutive losses.


extern bool ResetMartAtFirstProfit=false; // when true, the Mart sequence is reset as soon as profitable trade is reached; else it will scale-in until recouped ALL losses;
The strategy requires to continue martingaling until ALL losses are recouped;
even when a series of trades end-up in profit, the pips recouped by this winning series may not recoup all past losses,
even in AutoMartingale mode;
This is because the 3 trades are open with the same SL, but different TP values.
If only TP1 is reached, and TP1Factor is less than SLFactor, then the won pips will not cover a past lost series,
and we should continue to martingale the next trades;
When ResetMartAtFirstProfit is true, martingaling will stop at the first profitable series, and the multiplier
will be reset to 1.
This limits the increase of the martingale multiplier, therefore limiting the risk,
but at the cost of possibly not recouping all lost pips.

extern int Slippage = 3;
slippage value in pips for each open trade;

extern bool brokerIsECN=false;
set this to true when your broker is an ECN, which do not accept to send orders with a SL;
Orders are open in 2 esparate actions to set to the SL;

**** Settings for autonomously drawing the box and levels, similar to the Indicator's inputs:

extern bool ShowBoxes = true;
set this to true to make the EA draw the boxes and levels just like the Indicator would do;
this avoids using the indicator AND the EA together;

Colors for box and levels zones:

extern color BoxColorOK = LightBlue;
color of the box when its size is "ok to trade"

extern color BoxColorNOK = Red;
color of the box when its size is "NOT ok to trade"

extern color BoxColorMAX = Orange;
color of the box when its size is greater than MaxBoxSizeInPips and LimitBoxToMaxSize is true;

extern color LevelColor = Black;
extern color SessionColor = Linen; // show Session periods with a different background color
extern int FibLength = 12;

extern bool showProfitZone = true; // show profit zone in green
extern color ProfitColor = LightGreen; // profit zone color

extern string objPrefix = "LB2-"; // Prefixes of London Breakout Indicator objects;

extern string Gap=" ";


Other martingale sequences, in decreasing aggressivity(risk) order:
these "inputs" are not uesd in the EA, but only for informational purpose:
You can can easily copy/paste those martingale sequences to replace the default sequence in set in "martingale_sequence":

extern string aggressive_fibonacci_sequence="1,2,5,13,34,89,233,610,1597,4181"; // =every second term of fibonacci sequence;
extern string powers_of_2_sequence="1,2,4,8,16,32,64,128,256,512,1024,2048,4096";
extern string fibonacci_sequence="1,2,3,5,8,13,21,34,55,89,144,233,377,610,987,1597"; // F(n)=F(n-1)+F(n-2);
extern string mild_fibonacci_sequence="1,2,3,4,6,9,13,19,28,41,60,88,129,189,277,406"; // F(n)=F(n-1)+F(n-3);

=======================================================================

Enjoy...
Squalou

Maybe we Dutch are not the smartest

Anyway, I understand the whole thread to eventually get to a functioning trading style using an EA.

In that vision, there is no need to improve indicators, as what more is there to improve above what is already doing a fine job?!

CONGRATS, Squalou !!!!

Thank you Squalou for your work !!!! You rock !!! I hope some day I will have chance to shake your handhttp://cdn.forexfactory.com/images/icons/icon7.gif

I have one quaestion. What about CT option? Will ther be another EA ? Or shall we adjust somehow current one?

Rgds,
RL

Thank you very, very much Squalou for giving us this EA! And thanks again mer071898 for developing the strategy.

Just another warning, don't be silly and try running this on a $1k or $2K demo backtest and expect this to work. The lowest I've been able to safely backtest this for a whole year was on Gbp/Usd in 09 with $20K and using a standard and aggressive (default) Fibonacci sequence using .01 lots. Remember, this strategy needs capital TO WORK PROPERLY.

A 3 tier CT strategy is in the works and hopefully sqaulou can make simple changes to the indicator and the EA for that as well. I would encourage those who have appreciated sqaulou's efforts to contact him privately and maybe send a "contribution" his way, I'm sure he would appreciate it as it has definitely been earned.

Scott & squalou

Thank you so much for both of your incredible effort of giving selflessly.

I really wish that i can vouch for you ... ...

Anyway, thank you.

Excellent work guys on both the strategy and the EA. Looking forward to testing !

Squalou thanks for your outstanding work and generous donation.

could you clarify the box times please - do we have to adjust for GMT shift. eg. add +1 for servers which are GMT+1 like Alpari UK?
The onscreen text quotes both local and server time - which does the EA use?

The strategies box is based off of GMT+0 or 05:00 to 08:00 GMT. The default box time in the EA is 06:00 to 09:14 which is GMT+1. If your on GMT +1, just keep everything the same. I changed my session end time to 02:00 to allow a little extra trading time, but that is just my preference.