London breakout strategy

The author of this strategy is Scott Merritt, a major American trader and owner of Merritt Forex Investments. His strategy is a combination of breakout trading and martingale trading. Trading is done in pairs, which are the most volatile during the London session. This is Eur/Usd, Gbp/Usd, Usd/Jpy, Eur/Jpy, Usd/Chf. The percentage of winning transactions is 65-75%The system is based on the London BreakoutV9.1 indicator created by Merritt. It is set on a 15-minute chart. This indicator draws the volatility range for the period of 3 hours before the start of the Frankfurt session. That’s between 03:00 and 6:00 GMT. Therefore, when trading on this indicator, its settings should correspond to the terminal time. It’s no coincidence that this time is chosen. After the opening of the Frankfurt Stock Exchange, the movement of currency rates increases. In addition to the volatility boundaries, the indicator draws input and takeprofit levels. The profit target has been carefully calculated to get the same number of points as the starting range size. The range and size of profit on the picture are 38 points. If the initial range is too wide, trading is canceled and a red box appearsIn the first version of the strategy it is proposed to place pending orders at the specified levels, with the specified profit level. If Take Profit has not worked, close trades at the end of the trading day in any case, and continue working the next day. You can also place pending orders in case the price returns to the range.This strategy works well in times of trend and strong movement. But in the case of the flute, the efficiency is greatly reduced. That’s why Merritt tried to find the best way to get profit or minimize losses in such days. As a result of the research together with other traders another variant of the system for trading on Eur/Usd, Gbp/Usd, Eur/Jpy, Usd/Cad, Gbp/Jpy pairs was created. In this variant the time limits of the range are shifted to the beginning of the London session. In addition, there are three profit targets, where you can clearly see when to close positionsThe system assumes opening of positions at the range boundaries and closing at each level of 1/3 of the volume. The stoploss is mounted at the opposite end of the range. When the first goal is reached, the rest of the volume is translated into a lossless loss.Scripts and Expert Advisors have been created for this system to facilitate the work.Download indicators, scripts and Expert Advisor for the first versionDownload indicatorsDownload Councillor