London Breakout Strategy

The London Breakout strategy is a fascinating strategy that British Pound traders use every day. The time considered for this strategy is exactly 8hrs after the market opens for the trading day. A demo account will be ideal for practice purposes before using a live/real account.

One can trade the following pairs successfully with this strategy; GBPUSD, GBPJPY, and GBPCAD.

The time frame on the MT4 chart for this strategy is the 1hr time frame. The 8th candle/bar for the day is the last candle before London session opens for the purpose of this strategy. The 50 simple moving average indicator on the chart is set to Close. If the price is below 50ma, then the present trend may be bearish. If the price is above 50ma, then the present trend may be bullish.

How it works

Basically, at the start of the London session, the high and the low points of the candle before the London market opens is identified (example high = 1.3019, low = 1.3015). Pending orders of buy and sell stops are then placed 10 pips away from the high and low of that candle (example buy stop is placed at 10 pips above high = 1.3029, while sell stop is placed at 10 pips below the low of the candle = 1.3005).

However, the take profit for both the buy and sell stops will be 15 pips while the stop loss will be 30 pips (reward to risk ratio 1:2). The take profit point of the buy stop order above the candle/bar will be 1.3044 while the stop-loss is 1.2999. The take profit point of the sell stop order below candle/bar will be 1.2990 while the stop-loss is 1.3035.

London

RESULT FOR 6TH AUG, 2018

LONDON

SCOPE FOR 7TH AUG, 2018 (7TH AUG 6:30 GMT)

GBPUSD: Buy Stop Order 1.29564 (take profit 1.29714 / stop-loss 1.29264) Sell-Stop Order 1.29292 (take profit 1.29142 / stop-loss 1.29592) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

EURUSD: Buy Stop 1.15693 (take profit 1.15793 / stop-loss 1.15393) Sell stop 1.15444 (take profit 1.15344 / stop-loss 1.15744) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPJPY: Buy Stop 144.234 (take profit 144.384 / stop-loss 143.934) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

SCOPE FOR 8TH AUG, 2018 (8TH AUG 6:12 GMT)

EURUSD: Buy Stop 1.16377 (take profit 1.16477/ stop-loss 1.16077) Sell stop 1.16077 (take profit 1.15977/ stop-loss 1.16377) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPUSD: Buy Stop Order 1.2969 (take profit 1.2984/ stop-loss 1.2939) Sell-Stop Order 1.29385 (take profit 1.29235/ stop-loss 1.29685) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

SCOPE FOR 9TH AUG, 2018 (9TH AUG 6:34 GMT)

GBPUSD: Buy Stop Order 1.28916 (take profit 1.29066/ stop-loss 1.28616) Sell-Stop Order 1.28603 (take profit 1.28453/ stop-loss 1.28903) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

EURUSD: Buy Stop 1.16256 (take profit 1.16356/ stop-loss 1.15956) Sell stop 1.1595 (take profit 1.1585/ stop-loss 1.1625) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPJPY: Buy Stop Order 142.875 (take profit 143.025/ stop-loss 142.575) Sell-Stop Order 142.467 (take profit 142.317/ stop-loss 142.767) – BUY STOP TRIGGERED! Monitor GBPUSD for the right direction! – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPCAD: Buy Stop Order 1.67712 (take profit 1.67862/ stop-loss 1.67412) Sell-Stop Order 1.67417 (take profit 1.67267/ stop-loss 1.67717) – SELL STOP TRIGGERED! Monitor GBPUSD for the right direction! – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

SCOPE FOR 10TH AUG, 2018 (10TH AUG 6:55 GMT)

Apologies people, I’m not feeling too well today. London trades broke out lower already before I could log on. No need to post today’s trade signal anymore. I will try to post it early on Monday. See you on Monday!

SCOPE FOR 13TH AUG, 2018 (13TH AUG 5:45 GMT) Please note: Close pending Sell Stop order if buy stop get’s triggered first. Close pending Buy Stop order if Sell stop order gets triggered first.

EURUSD: Buy Stop 1.13936 (take profit 1.14086/ stop-loss 1.13636) Sell stop 1.13545 (take profit 1.13395/ stop-loss 1.13845) – BUY STOP TRIGGERED! TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPUSD: Buy Stop Order 1.27705 (take profit 1.27855/ stop-loss 1.27405) Sell-Stop Order 1.27395 (take profit 1.27245/ stop-loss 1.27695) STOP-LOSS HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPJPY: Buy Stop Order 140.711 (take profit 140.861/ stop-loss 140.411) Sell-Stop Order 140.281 (take profit 140.131/ stop-loss 140.581) – BUY STOP TRIGGERED! TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPCAD: Buy Stop Order 1.6798 (take profit 1.6813/ stop-loss 1.6768) Sell-Stop Order 1.67677 (take profit 1.67527/ stop-loss 1.67977) TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

SCOPE FOR 14TH AUG, 2018 (14TH AUG 5:46 GMT) Please note: Close/delete pending Sell Stop order if Buy Stop get’s triggered first. Close/delete pending Buy Stop order if Sell Stop order gets triggered first.

EURUSD: Buy Stop 1.14224 (take profit 1.14374/ stop-loss 1.13924) Sell stop 1.13902 (take profit 1.13752/ stop-loss 1.14202) – BUY STOP TRIGGERED! Delete pending sell stop.

GBPUSD: Buy Stop Order 1.27819 (take profit 1.27969/ stop-loss 1.27519) Sell-Stop Order 1.27554 (take profit 1.27404/ stop-loss 1.27854) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPJPY: Buy Stop Order 141.681 (take profit 141.831/ stop-loss 141.381) Sell-Stop Order 141.363 (take profit 141.213/ stop-loss 141.663) – TAKE PROFIT TARGET HIT. TRADE SIGNAL IS NO LONGER VALID!

GBPCAD: Buy Stop Order 1.67577 (take profit 1.67727/ stop-loss 1.67277) Sell-Stop Order 1.67312 (take profit 1.67162/ stop-loss 1.67612)

Caution: Forex trading is risky. It is advisable that you acquire enough experience before you start to trade with real money. Do not invest in money that you cannot afford to lose (it is important that you study leverage, lot size, and money management in Forex trading very well before you execute your trade decision).

To trade in the Forex Market you must first sign up with a Forex Broker. There are lots of Forex Brokers out there that offer good service to their clients. Services include tight spread, partnership amongst others. My preferred brokers are 1. Alpari (https://alpari.com/en/?partner_id=1244646) and 2. FXTM (http://forextime.com/?partner_id=4806145). You may sign up through any of the partner links above. You may also send me a mail in case you need me to guide you on how to sign up and start trading (beanfxtrader@gmail.com).

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