Asian Breakout Trading System FREE Download Asian Breakout Trading System FREE Download

The Asian Breakout System is a high and low breakout trading system during the Asian session. The AHAL (Asia High Asia Low) strategy is a popular choice due to its simplicity and potential profitability. This daily scalping trading method ditches traditional trading tools like Fibonacci retracements, trendlines, chart patterns, and oscillators in favor of a more direct approach. The system can be adjusted and modified to include personalized trading rules.

Learn about AHAL Breakout Strategy

The cornerstone of the AHAL strategy is to identify the highest (Asia high) and lowest (Asia low) price points during the Asian trading session. To do this, traders draw lines marking extreme price points between 21:00 GMT and 06:00 GMT (the standard time frame for the Asian trading session). By 06:00 GMT, traders can finalize Asia's highest and lowest prices for the day.

Breakout trading systems are built around the expectation that an asset's price will move significantly in either direction, especially after being trapped within a relatively narrow price range. The AHAL method sits squarely within this system, using the highs and lows of the Asian session to predict potential breakouts in subsequent trading sessions.

Once the Asian highs and lows are identified, traders can use these points to mark potential breakouts during the European or US trading sessions. The basic assumption here is that once an asset's price breaks above the highs set during the Asian session or falls below the lows, significant price movements are likely to occur.

Make profitable trades with AHAL

Traders using the AHAL method typically place buy orders above Asian highs and sell orders below Asian lows. The logic behind this strategy is that if the price breaks out of the established range, a strong trend (either up or down) is likely to occur.

Buy orders above the Asian highs signal a bullish trend, while sell orders below the Asian lows signal a bearish trend. This provides traders with the opportunity to take advantage of large price movements, potentially leading to profitable trades.

This Asian breakout system is completely manual. Indicators will generate signals, but any decision to enter the market and set a protective or profitable exit stop will be up to the trader. Therefore, traders must become familiar with the principles of risk and reward and use initial support and resistance areas to set up entries and exits.

The AHAL system can provide you trading signals as is or as suggested adding additional chart analysis to further filter the signals . While the system can be used by traders of all experience levels, it may be helpful to practice trading on an MT4 demo account until you become consistent and confident enough to start using it.

The breakout trading system can be used on any forex currency pair and other assets such as stocks, commodities, cryptocurrencies, precious metals, oil, gas, etc. You can also use it within any time frame that works best for you, From 1 minute chart to 1 month chart.

Risk Management in the Breakout Trading System

While the AHAL method has proven profitable for many traders, it, like any trading strategy, is not without risks. A key aspect of managing this risk is setting stop loss orders correctly. In this case, stop-loss orders are typically set with buy orders just below the Asian high and sell orders just above the Asian low. This strategy helps limit potential losses if price unexpectedly reverses after a breakout.

Asian Breakout System Trading Rules

When using this Asian Breakout System, remember to tighten your stops around high-impact news releases or avoid trading for at least 15 minutes before or after these events.

As always, to achieve good results, remember proper money management. To become a profitable trader, you must master discipline, emotions, and psychology. Knowing when to trade and when not to trade is crucial. Avoid trading during adverse times and market conditions, such as low trading volume/volatility, outside of main trading hours, exotic currency pairs, wide spreads, etc.

Enter and exit settings

• The best performance was on GBP/USD. It works for all other pairs as well, but try using different SL and TP.
• Use the 55 EMA to spot high-probability trades and avoid entering positions against the trend. Use the EMA on the hourly chart to identify trends, then switch to the M5 time frame for buy orders at the Asian highs or sell orders at the Asian lows.
• You must adjust the trading session time to match the broker server time in the input parameters. Default settings are for GMT 2+. (This is the default setting for most brokers)
  • Dark Gray Box – the Asian session
  • Medium Gray Box – European Conference
  • Light Gray Box – Americas Time

Buy Entry

1. The 55 EMA on the hourly chart is in uptrend mode. (EMA is the blue price is higher than EMA)
2. Place a buy order at the Asian highs.
3. Set your stop loss 30 pips below the Asian high.
4. Set the first profit target at 15 pips.
5. Set your second profit target at the next intermediate pivot price level or the next pivot point.

• Automatic Pivot Point Indicator MT4/MT5 Free Download
• After reaching the first target profit, move the stop loss to achieve breakeven.
• If the M5 candle closes below the nearest pivot point, exit the second trade.

Sell ​​Entry

1. The 55 EMA on the hourly chart is in downtrend mode. (H1 EMA is red price lower than EMA)
2. Place a pending sell order at the Asian lows.
3. Set stop loss 30 pips above the Asian low.
4. Set the first profit target at 15 pips.
5. Set your second profit target at the next intermediate pivot price level or the next pivot point.

• After reaching the first target profit, move the stop loss to achieve breakeven.
• If the M5 candle closes above the nearest pivot point, exit the second trade.

• Read MoreLondon Breakout Indicator and Strategy Free Download

AHAL system conclusion

The AHAL system is a relatively simple but effective trading strategy that allows traders to take advantage of price movements outside of established Asian highs and lows. Although it abandons many traditional trading tools, its simplicity and profit potential make it an attractive option for both new and experienced traders. However, as with any investment strategy, thorough understanding, careful implementation and thoughtful risk management are critical to success.