Frankfort Breakout EA (Frankfort Breakout EA) | Foreign exchange EA download- MT4/MT5 resources

Frankfurt Breakthrough EA

This post is an archive of trading and trading system development. My thread goal is to develop and optimize a simple system to achieve long-term stable profits. This is a first post and since we can edit it over time I will describe the theory and variables I hope to optimize.

Frankfurt breaks through EA theory

I know there are many European or London breakout strategies out there, but based on the analysis I've developed and tested, hopefully it will be successful. The range of the 6 AM (London time) / 1 AM (New York time) candle appears to be significant in terms of intraday support or resistance. Once we break through this range, we will face three situations:

1. The price of the instrument continues to trend towards a breakout, reaching a reasonable percentage of daily ATR
2. Price reverses (before % of ATR) and retests the range before continuing in the direction of the original breakout
3. Price reverses and closes above the other side of the range (this would be a losing trade)

This initial strategy will be based on option #1, where we trade on the breakout in anticipation of a continuation move and close the trade before the US open (ideally) or before the next 6 AM candle (if price has not yet broken out and closed above the other side of the range). In the future, we could certainly consider evaluating option #2 as a possible trade opportunity, but initially option #1 will be the focus. In the next few articles, I will illustrate the above logic using diagrams.

Entry – Stop Loss – Exit

1. Enter once price breaks out and closes +5 pips above/below the 6am high/low
2. Time Frame – H1 Chart
3. Trading instruments – GU, GJ, GA, GCHF, GCAD, GN, EU, EJ, EG, AU, NU, UCHF, UJ
4. Lot size – 0.25% of account balance
5. Stop Loss – +5 pips from hourly close above/below the 6am high/low on the other side of the range
6. Take Profit – 50% of 30-day ATR
7. No usage indicators
8. If the trade does not reach profit or closes on the opposite side of the range, the trade will be carried forward to the next trading day. If the breakout goes in the opposite direction, exit the trade and place a new trade in the direction of the signal.
9. Following Monday's non-farm payrolls data, look for continuation if the data is strong and trades in the direction of the non-farm payrolls data. Normal methods will resume on Tuesday.
10. The holidays are not a good time for trading - MLK

variables to optimize

1. trading tools
2. stop loss
3. Take profit
4. Trading days
5. Money management
6. 6 AM candle range
7. Points above/below the entry range

Other comments


I will start trading this strategy manually, looking for any opportunities after the 8am (London time) / 3am (US time) Frankfurt breakout. The goal is to capture the percentage of ATR and exit the trade before the US open.

Next, once we have a few months of data, we plan to develop an EA to assist with early morning entries and place all trades precisely at the start of the new hour.

I have set up a small live account using Trade Explorer to track all trades and performance. Yes, alive. My philosophy is "You can't sail a boat with one foot on the dock." Real-time results matter.

I've been evaluating this strategy on the charts for about the past year or so. I have a lot of biases about variables, but they're just biases. I have no concrete data to verify them. I hope this article will help identify these biases about this strategy.

If you would like to participate, you are welcome. Please treat others with respect and use your ideas to add value. If you present statements, conclusions, or ideas, provide graphs or data to support them. My day job is full time so I'm not in front of a computer all the time. I won't be the fastest responder due to other responsibilities, but I will get back to you.

Finally, I am not a professional trader or advisor. If you follow any part of this system or any EA developed in the future, you will be responsible for your trades, the execution of the trading platform, and your results. I'm just sharing an idea, gathering data and adjusting it to the market for potentially profitable gains.

Happy trading to everyone...