New York Breakout Strategy
The New York Breakout strategy is a simple strategy that traders use every trading day. The time considered for this strategy is exactly 16hrs after the market opens for the trading day. A demo account will be okay for practice or backtesting purposes before going live on this strategy.
One can trade the following pairs successfully with this strategy; EURUSD, GBPUSD, USDCHF, and USDJPY.
The 1hr time frame on the MT4 chart is recommended for this strategy. The 16th 1 hr candle/bar for the day is the last candle before the New York session opens for the purpose of this strategy. The 50 simple moving average indicator on the chart can be 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.
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How it works
Basically, at the start of the New York session, the closing price of the 16th 1 hr candle/bar or the opening price of the 17th candle is identified, (an example of the opening price of 17th 1 hr candle = 1.13522). Pending orders of buy and sell stops are then placed 10 pips away from the opening price of 17th 1hr candle for the day (example of buy stop is placed at 10 pips above opening price = 1.13622, while the sell-stop order is placed at 10 pips below the opening price of the 17th 1hr candle = 1.13422).
However, the take profit for both the buy and sell stops will be 10 pips while the stop loss will be 20 pips (reward to risk ratio 1:2). The take profit point of the buy stop order above the candle/bar will be 1.13722 while the stop-loss is 1.13422. The take profit point of the sell stop order below candle/bar will be 1.13322 while the stop-loss is 1.13622.
As soon as one of the pending orders is triggered, the other pending order can be deleted.