A Simple London Breakout | Martin EA Download - MT4/MT5 Resources
This is a simple London Breakout strategy based on a variation of the BoxFibo indicator from my London Progressive Strategy thread.
I simplified the indicator by placing the initial entry point between the 27 and 38.2 fib extensions typically on either side of the box. I don't want to extend this beyond 38.2 expansion, although this is doable because the further we move the target, the harder it will be to reach the desired target since it moves proportionally to the box size. I want to make sure we have a higher probability of achieving our goals.
The profit target line is carefully calculated to produce the same number of points as the size of the box. So, if your box size is 40 pips, your profit target line should be exactly 40 pips from your entry point. This is not about gaining a large number of points due to the smaller box size, but rather to increase the success rate of our trades.
You need to place the indicator on the 15 minute chart. The start time is 03:00 to 06:00 GMT, which is 3 hours before the game starts in Frankfurt (if your broker's GMT time is not GMT +0, you will need to adjust the time accordingly according to your broker's GMT time). My agent is GMT +1, so I'll start from 04:00 to 07:00. The obvious reason we put it before the open in Frankfurt is to draw the box before the swing starts and before the breakout occurs.
There are several ways you can handle transactions that occur. you can
A) Take the first trade you get, one trade every night, win or lose, or:
B) Accept all trades that come your way, it's your choice.
If you trade using option B) and there are still open trades when the new box forms, you can keep the trade until it reaches your profit target or stop loss, or you can close all open trades around 03:00 GMT before the new box opens, regardless of whether your trade is profitable or not, which is the way I prefer to do it so as not to overlap trades. I prefer the latter mainly because if I decide to incorporate any * Martingale type methods, I need to know the new number I need to use before the next transaction occurs.
Happily, you really won't see many losing trades in a row. The most I've seen are 4-5 in a row, so you might try the * martingale approach and increase your loser's lot size to cover your losses. Pick 4-5 low spread currency pairs (i.e. EUR/USD, USD/JPY, etc.) and experiment with them over the next few days and weekends, then starting on Monday the 12th I will pick a few pairs and show some examples of how the trade unfolds. You should see an overall win rate of around 65-75%. The pairs I will be monitoring are:
EUR/USD GBP/USD USD/JPY EUR/JPY USD/CHF
I strongly recommend not to trade if the box size exceeds 40-50 pips for all currency pairs. Generally speaking, this is because a large price movement has occurred before the opening, which will make it more difficult to reach the target. I'm not saying it's impossible, but please use common sense before making any trades.
Good luck!
***The martingale strategy is inherently risky and is not recommended unless sufficient funds are available to protect your account from the possibility of a margin call. Please always utilize proper money management. ***
*** Bugs in both indicators have been fixed. Thanks to sangmane for the fix. New indicators and templates loaded. *** April 12, 2010
***Please note that I have updated both indicators and templates in post #1 with code changes made by nightyhawk, including the MaxBoxSize parameter and the ability to change the level color. The Fibcolor input parameter has been removed as I don't see any changes when the input changes. If you use a 5-digit broker, add an extra "0" to get the correct MaxBarSize. ***4/15/2010
***Many thanks to Steve Hopwood for modifying one of his EAs to fit this strategy. Current version from post #292*** 4/19/2010
***Indicator modifications done by sangmane and squalou are now merged, including the if box is larger than MaxBoxSizeInPips input . You can also adjust the SessionEndTime color. You can now also change the entry level and profit target level. The default levels in the indicator are now carefully configured so that your entry profit target matches the box size. Also added a LevelResizeFactor parameter which allows you to fine-tune the levels if you want the levels to be different sizes than the box, but still be box-based? For example, if you set it to 0.7 (1.0 is the default for normal trading), all levels will adjust as if the box is actually being squeezed by this factor, still centered around the actual box "median price". Post #357 has some example pictures and a more detailed explanation. Thank you all for your contributions. *** April 22, 2010
*** This indicator V7 has the following improvements:
- Show "Profit Zone" in green (can be disabled via input)
- Display the box size in points below the box and a "No Trading" sign in the red box;
- Place a chart annotation in the upper left corner with the main settings so you know immediately what the chart means;
- Set system-wide global variables for use with the following processing...
Squalou modified Steve Hopwoods' "London Breakout Script" (described in Post 138 and attached here), please read it to understand the basic usage of the script.
This new script will take advantage of the improvements added in the V7 indicator so that you no longer need to manually enter entry/take profit/stop loss values! ! !
Here's how to use it:
-1- Load the "London BreakoutV7.mq4" indicator (or higher version) on the chart;
-2- Drag the script onto the chart and click OK.
The script will automatically replace input values left at 0 with the corresponding entry/TP/SL levels for BuyStop and SellStop orders calculated by the indicator using your indicator inputs, so you do not need to enter them manually. You can use this script on every chart you open for different currency pairs. Use the "F3" key to display the created global variables. You can change their values directly there and they will be picked up by the script. When new boxes are formed the next day, they will automatically update. *** April 28, 2010
***V8 added the following inputs***
This version will allow stop loss/take profit levels to be kept within "reasonable" min/max limits on days when volatility is too high or too low before a breakout...
It also has 2 inputs as box size limiters.
Don't want your Take Profit/Stop Loss levels to spike?
Just set "MaxExtentInPips" to whatever box size you don't want to exceed, and that's it.
For those days when you think the box is too small, you can definitely harvest more points than the little green bar suggests...
Then just set "MinExtentInPips" !
Of course, as usual, omitting these values (default 0) does not change the behavior of previous versions of the indicator...just to make you feel at home...
Thanks to squalou for all the improvements. If you have any technical questions about indicators or script parameters, please PM squalou directly, thank you. *** 4/29/2010
***The complete package has now been added to the zip file and includes:
Steve Hopwoods EA (modified by squalou )
Indicators (new V.9.1 indicators)
script
If you have any questions, please PM or email squalou for details. *** 5/6/2010
*** Currently testing an alternative setup, starting after #647. Alternative settings and rules can be found in post #506 *** 5/11/2010
*** V4.0 version of EA...
New features:
- Added trailing stop loss capability
New input:
Trailing Stop(0) - Trailing Stop; when 0, no trailing is applied (SL is fixed as before).
TrailingStopStep(1) - A trailing stop will jump this amount instead of trailing on every price move; (helps limit the number of orders sent and therefore the number of order rejections).
- Profit lock after adding fixed profit:
"BreakEven Point" - When "BreakEvenPips" > 0, when the price reaches BE+"BreakEvenPips", the stop loss will be moved to BE+"BreakEvenProfitInPips". Works independently of the "AllowHalfClose" option (but uses the same BreakEvenProfitInPips value); will also be tracked if TrailingStop is selected; (Inspired by Steve's MPTM EA...)
"Maximum Risk " - if >0, the order size is the minimum value of the entered and calculated lot size, the maximum lot size based on the maximum risk and stop loss;
- When the EA is uninstalled, all open/pending trades will be closed;
- Replace order-related functions with "robust" versions... (if the call fails, it will be retried 10 times with a time interval).
- When MagicNumber is 0, the EA will create a unique MagicNumber, which will be different for each pair/ time range . This helps to run the EA on different currency pairs/timeframes without having to change the MagicNumber manually.
- Added alert when indicator settings global variable is not found. In this case, the EA will stop trading.
- Fix: In V3.0, the objPrefix default value was not set to "LB-" as it should be, causing error 130 "Invalid Stop". May 20, 2010***
I simplified the indicator by placing the initial entry point between the 27 and 38.2 fib extensions typically on either side of the box. I don't want to extend this beyond 38.2 expansion, although this is doable because the further we move the target, the harder it will be to reach the desired target since it moves proportionally to the box size. I want to make sure we have a higher probability of achieving our goals.
The profit target line is carefully calculated to produce the same number of points as the size of the box. So, if your box size is 40 pips, your profit target line should be exactly 40 pips from your entry point. This is not about gaining a large number of points due to the smaller box size, but rather to increase the success rate of our trades.
You need to place the indicator on the 15 minute chart. The start time is 03:00 to 06:00 GMT, which is 3 hours before the game starts in Frankfurt (if your broker's GMT time is not GMT +0, you will need to adjust the time accordingly according to your broker's GMT time). My agent is GMT +1, so I'll start from 04:00 to 07:00. The obvious reason we put it before the open in Frankfurt is to draw the box before the swing starts and before the breakout occurs.
There are several ways you can handle transactions that occur. you can
A) Take the first trade you get, one trade every night, win or lose, or:
B) Accept all trades that come your way, it's your choice.
If you trade using option B) and there are still open trades when the new box forms, you can keep the trade until it reaches your profit target or stop loss, or you can close all open trades around 03:00 GMT before the new box opens, regardless of whether your trade is profitable or not, which is the way I prefer to do it so as not to overlap trades. I prefer the latter mainly because if I decide to incorporate any * Martingale type methods, I need to know the new number I need to use before the next transaction occurs.
Happily, you really won't see many losing trades in a row. The most I've seen are 4-5 in a row, so you might try the * martingale approach and increase your loser's lot size to cover your losses. Pick 4-5 low spread currency pairs (i.e. EUR/USD, USD/JPY, etc.) and experiment with them over the next few days and weekends, then starting on Monday the 12th I will pick a few pairs and show some examples of how the trade unfolds. You should see an overall win rate of around 65-75%. The pairs I will be monitoring are:
EUR/USD GBP/USD USD/JPY EUR/JPY USD/CHF
I strongly recommend not to trade if the box size exceeds 40-50 pips for all currency pairs. Generally speaking, this is because a large price movement has occurred before the opening, which will make it more difficult to reach the target. I'm not saying it's impossible, but please use common sense before making any trades.
Good luck!
***The martingale strategy is inherently risky and is not recommended unless sufficient funds are available to protect your account from the possibility of a margin call. Please always utilize proper money management. ***
*** Bugs in both indicators have been fixed. Thanks to sangmane for the fix. New indicators and templates loaded. *** April 12, 2010
***Please note that I have updated both indicators and templates in post #1 with code changes made by nightyhawk, including the MaxBoxSize parameter and the ability to change the level color. The Fibcolor input parameter has been removed as I don't see any changes when the input changes. If you use a 5-digit broker, add an extra "0" to get the correct MaxBarSize. ***4/15/2010
***Many thanks to Steve Hopwood for modifying one of his EAs to fit this strategy. Current version from post #292*** 4/19/2010
***Indicator modifications done by sangmane and squalou are now merged, including the if box is larger than MaxBoxSizeInPips input . You can also adjust the SessionEndTime color. You can now also change the entry level and profit target level. The default levels in the indicator are now carefully configured so that your entry profit target matches the box size. Also added a LevelResizeFactor parameter which allows you to fine-tune the levels if you want the levels to be different sizes than the box, but still be box-based? For example, if you set it to 0.7 (1.0 is the default for normal trading), all levels will adjust as if the box is actually being squeezed by this factor, still centered around the actual box "median price". Post #357 has some example pictures and a more detailed explanation. Thank you all for your contributions. *** April 22, 2010
*** This indicator V7 has the following improvements:
- Show "Profit Zone" in green (can be disabled via input)
- Display the box size in points below the box and a "No Trading" sign in the red box;
- Place a chart annotation in the upper left corner with the main settings so you know immediately what the chart means;
- Set system-wide global variables for use with the following processing...
Squalou modified Steve Hopwoods' "London Breakout Script" (described in Post 138 and attached here), please read it to understand the basic usage of the script.
This new script will take advantage of the improvements added in the V7 indicator so that you no longer need to manually enter entry/take profit/stop loss values! ! !
Here's how to use it:
-1- Load the "London BreakoutV7.mq4" indicator (or higher version) on the chart;
-2- Drag the script onto the chart and click OK.
The script will automatically replace input values left at 0 with the corresponding entry/TP/SL levels for BuyStop and SellStop orders calculated by the indicator using your indicator inputs, so you do not need to enter them manually. You can use this script on every chart you open for different currency pairs. Use the "F3" key to display the created global variables. You can change their values directly there and they will be picked up by the script. When new boxes are formed the next day, they will automatically update. *** April 28, 2010
***V8 added the following inputs***
This version will allow stop loss/take profit levels to be kept within "reasonable" min/max limits on days when volatility is too high or too low before a breakout...
It also has 2 inputs as box size limiters.
Don't want your Take Profit/Stop Loss levels to spike?
Just set "MaxExtentInPips" to whatever box size you don't want to exceed, and that's it.
For those days when you think the box is too small, you can definitely harvest more points than the little green bar suggests...
Then just set "MinExtentInPips" !
Of course, as usual, omitting these values (default 0) does not change the behavior of previous versions of the indicator...just to make you feel at home...
Thanks to squalou for all the improvements. If you have any technical questions about indicators or script parameters, please PM squalou directly, thank you. *** 4/29/2010
***The complete package has now been added to the zip file and includes:
Steve Hopwoods EA (modified by squalou )
Indicators (new V.9.1 indicators)
script
If you have any questions, please PM or email squalou for details. *** 5/6/2010
*** Currently testing an alternative setup, starting after #647. Alternative settings and rules can be found in post #506 *** 5/11/2010
*** V4.0 version of EA...
New features:
- Added trailing stop loss capability
New input:
Trailing Stop(0) - Trailing Stop; when 0, no trailing is applied (SL is fixed as before).
TrailingStopStep(1) - A trailing stop will jump this amount instead of trailing on every price move; (helps limit the number of orders sent and therefore the number of order rejections).
- Profit lock after adding fixed profit:
"BreakEven Point" - When "BreakEvenPips" > 0, when the price reaches BE+"BreakEvenPips", the stop loss will be moved to BE+"BreakEvenProfitInPips". Works independently of the "AllowHalfClose" option (but uses the same BreakEvenProfitInPips value); will also be tracked if TrailingStop is selected; (Inspired by Steve's MPTM EA...)
"Maximum Risk " - if >0, the order size is the minimum value of the entered and calculated lot size, the maximum lot size based on the maximum risk and stop loss;
- When the EA is uninstalled, all open/pending trades will be closed;
- Replace order-related functions with "robust" versions... (if the call fails, it will be retried 10 times with a time interval).
- When MagicNumber is 0, the EA will create a unique MagicNumber, which will be different for each pair/ time range . This helps to run the EA on different currency pairs/timeframes without having to change the MagicNumber manually.
- Added alert when indicator settings global variable is not found. In this case, the EA will stop trading.
- Fix: In V3.0, the objPrefix default value was not set to "LB-" as it should be, causing error 130 "Invalid Stop". May 20, 2010***
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