@@TradeForexwithPaul Thanks for this strategy Paul. First loss of the week is today. Will backtest in coming weeks as well. What about you Paul this week, did u take any trades based on this strategy??
Using replay in TV, I traded between 29th May and 26th June. There was only one day I couldn't get a trade and 15 were within the first two hours. That aspect was great. I won 11 out of 20 at 1 to 1.5 RR. Had I been trading on a 100k prop account I would have seen it go from 100,000 to 106,612 which is not too shabby for a hands off system. Many thanks Paul.
I optimised it a little bit, try to add a Volume indicator to avoid false breakouts on your charts (you can use the default one on trading view) with a 10 or 20 MA and add to your charts the ATR indicator as well. You can set your SL based on the average ATR values and can increase your Risk-Reward-Ratio to 2:1 or even 3:1.
Hi there, can you explain further how using the ATO you would calculate the stoploss and return on profit? Sorry I’m a bit of a Newby so I need a little more explanation.
@@seangarrett1567 hi mate, its typically a manual calculation for SL and TP when using any set stop. The average true range is usually the average of the last 12 or 14 candles (I dont use it, so from memory of seeing it when I started out). From here, find a position size calculator online to determine how much ££ to use based on the ATR stop, and set a target, or trail the stop behind the nearest swing and follow the market as far as it wants to go. Good luck mate - and dont forget to backtest to work out your optimal targets and literally just stick to them every day.
@@seangarrett1567 ATR means Average True Range and it tells you the average movement of N Candles (in default 14 candles) over a specific timeframe (depends on your chart). That gives you an idea for the realistic upcoming movements in the future. Based on that you can set your SL - if no crazy fundemantel news are published it probably should move like the ATR value. You have to play around a little bit with it, i see a lot of people multiply the ATR Value with 1,5 or 2, just to have a little bit more space. Hope it helps, best of luck!
I've been trading this for more than 10 years now. If you think that's a long time there are some traders. that have been using it since the 90's. It's been a consistent winner for me. I've done very well applying the basic ideas of this to futures, crypto and stocks as well although it's slightly different. When choosing pairs to use this on many of the minors do well also.
21 Dec 2020 - 13 Feb 2021 = 19 Wins/19 Loss // 1:1.5 // +9.5%. Not too bad at all! I used to trade a very similar strategy with the NYC session (EURUSD/GBPUSD).
Okay! Well up until 7:30 this morning I was ready to throw the towel in but I decided to do a bit more digging around on UA-cam for some inspiration. After a couple of “same ol” videos I came across yours. I had nothing to lose so I jumped on the charts and marked the zone out on GBP/USD and waited, sure enough I nice bullish candle broke through and closed above the the zone. I was using the demo account for back testing so I kept an eye on it (I know it’s fire and forget, which I will do on the real account) I kept the TP at a conservative 1.25% and within the hour hit it 😳 I’m hoping 🤞🏻this simple strategy will finally be a way to keep trading and building my small account. Thanks Paul for giving me hope an inspiring me to persevere.
Weyhey! loving this! August has been horrendous - So I hope you've had more luck than I have! (A little tip I didn't put into the video... trade off the pullback to the range - it shortens your SL, and makes your TP much larger. It also means that you take less trades, and you can also identify more fakeouts, so you can avoid losses easier. Less trades per month, but FAR MORE profitable!). Keep up the good work!
A well explained video as always, from my experience on trading, one thing I can attest to is that with adequate support from a qualified personnel can go a long way in helping you gain unvarying profit.
Backtested this with a few changes on NQ from over the previous 43 trading days from 20/10/2023 using a 3m chart. Using 2 contracts with a 1:1 RR and once TP1 was hit 1 contract was sold and stop moved to breakeven with a 1:2 target on TP2. Must enter after London open and prior to New York open, only entering on body closes above or below the Tokyo High or Low (body value not wick value). After 43 trading days there was 35 trades taken with 8 losers resulting in a 77% win rate and a net point gain value 860. Meaning if traded correctly this strategy would have had a $17,200 gain using 2 contracts. The strategy could be optimised again so once TP2 (1:2) was about to be hit stops moved to TP2 and let the market run to 1:3 or 1:4 or deploy a trailing stop after 1:2 etc. Great video and couldnt agree more that sitting in front of charts when trading a mechanical type of system like this is not the way to do it, have the system set and let the probabilities play out. We are the house and the house always wins.
Forex trading is all about eliminating the losing trades and achieving more winning ones. Most traders will rely on trading strategies that haven’t been tested thoroughly, setting themselves up for a failure.
@@amandafoy4455 trading is tough and that even the best traders have substantial losses along the way. I literally went from cubicles with small trading accounts of about $10,000 to making trade profits in millions in just a few years.
backtest result 6 Nov - 5 Dec 2023 i only changed the risk to always be 1% but reward always 1.5 4 days no trade 18 trades 10 wins 8 losses 1% risk on each trade 7% profit after this period but after 18 days you would have passes 8% and thats enough for first challenge phase on funding account
Hey Paul, you're simply awesome in the way you presented this strategy. You've brought so much clarity to me. I'm really grateful for coming across your video. Thank you.
Paul, thank you for this straight to the earth educational video. I have backtest the strategy with a little modification. I wait on 1hour Timeframe , wait till 8am GMT candle close on GBPUSD, then set pending BUY STOP orders 5pip on the HIGH and SELL STOP on the Low of the 8am GMT Candle which got activated, then I delete the non activated order, then place my Stop loss (usually btw 30 - 39pip) below or above the next swing. I close my chart and check back at 11am GMT Result: I have done 9% on a 100k Demo account in 2 week using only this strategy. (7 wins , 1 loss). I am hoping to purchase my FTMO challenge using this strategy. Please advise as you may wish Thank you once again, Paul
Oh man, I am so sorry - I completely missed this comment! That's an amazing adjustment and fantastic results. Have you stuck with it? If so, how have you done?
Paul, thank you for making this video! Absolutely enjoyed your detailed explanation! I like it when you set out the expectation of this strat straight away within the first minute of the video!
I backtested this strat, though modified the stop loss size to be 1.5XATR. 75 tests -> Tested from August - December 2020. 52% WR at 1:1.5 R:R, 55% WR at 1:1 R:R, 46% WR at 1:2 R:R. Probably some human error in the backtesting. Your strat with a wider SL seems to work better. I might try increase stop to 2XATR. Noticed mulitple times price would just stop me out and then go in my direction. Also with the tight stop loss the TP was usually hit within 3-10 candles, And when it failed it failed instantly (Also worth testing the failed breakout strat -> when price crosses back within range take opposite trade)
Really well done mate! I've had varying success with ATR based stops. I now trail my stops and place my original stop a certain no. Of pips. My win rate is lower, but my RRR is significantly higher. Cracking job with the backtesting 💪📈
Fantastic video mate. I also created an alert at crossing high and low points, using Once Per Bar Close. This worked out well so that I didn’t have to watch the charts for our trigger points.
Thanks Paul, I really like your explanation of this strategy and I also think it’s the best explanation and demonstration of the London breakout Ive ever seen. Ive seen a few versions of the London breakout on UA-cam but most other channels don’t really seem to trust what they’re saying (in regards to generic London breakout). In contrast, the belief you have in your method is another win for me as well as the clarity you explain each step with. This is the first video I’ve seen of yours and I really like what I saw. It was very helpful to me, thanks! 😊🙏🏼
Love this! Thanks mate. I'm just editing a video currently about a London breakout reversal which plays out more often that this recently, how to trade it, and how to minimise risk massively. Thanks again 📈
@@TradeForexwithPaul thanks Paul that sounds brilliant, exactly the type of content I’m looking for. . I’ve subscribed. I’ll be watching more content from tomorrow. Keep up the great work & take care!
A stratergy I noticed when I first started trading, and use a simnilar technique when market flattens out, I put pending trades above and below price. I actually put a trade in on the false break out with a tight training stop and more often than not catch a small profit before main breakout.
👍Thanks, your calm voice is very reassuring -- like a driving instructor who has confidence his learners will pass their test. Then: 7 am GMT is now 8 am BST, in April?
Thank you :) Yes - for a week or so, the charts shift between UK times and US times whilst one plays catch up with the other on DST. Typically though, LBO occurs at 8AM UK Time
Mate a big thank you for this well explained strategy which I have followed for the last 9 days, winning on 6 occasions using a 1.5 RR. I have got a good breakout strategy for the US30/DJ30 too which has won 7/11.
Just watched this and your other LBO videos. Really enjoyed them! I've always been attracted to LBO strategies and seeing other traders' versions of them. Have you made any adaptations to account for choppy markets and fakeouts, as range breakout strategies are vulnerable to that? Thanks for taking the time to share your ideas with us. I look forward to more videos on this topic. 👍
One coming up shortly mate! Thanks so much for the kind feedback. I'm definitely a LBO specialist and have multiple pairs and strategies for it... some I won't share on YT, but others I will. Stick around mate. Thanks again :)
Aww thank you so much. Be sure to backtest and adjust to suit your personality. If you combine it with my video about trend following (most recent one with the thumbnail which says 50% monthly) - you'll do very well for sure
Thanks so much Sofia! The past month has been hard on the strategy, but with market conditions altering on the higher timeframes, it should start showing good results again. Definitely backtest as far as you can and make sure you understand the concept of the strategy, then make adjustments to fit your own style of trading. I have another 3 London breakout videos lined up before moving on to other strategies that I've learnt over the years, and these videos should give you some ideas on how to extract the most out of the market, rather than setting a hard take profit. All the best 🙌📈🔥
Thought I'd revisit this Paul. So past 14 days tested, 9 wins 5 losses which is still pretty good. I then looked at M15 trend and 4 losses were against trend and so was 1 win. I noticed 1 loss however was a loser in either direction. So I reckon if you took M15 into account it's possibly 12 wins 2 losses. I need to go through it again but M15 bias definitely helps and if you filter M15 consolidation it would improve further. For changes in trend you will always get caught out but this is a great strategy, thanks for sharing!! I will do more back testing but with M15 🙂
Hi Samuel, how do you score on your FTMO challenge with this strategy? Would be very helpful for us if you could share your experience!! Thank you in advance!
Update on my previous post. I have now tested 34 days on Trading View replay. Unfortunately my win rate has dropped to 14 wins out of 34. with a RR of 1 to 1.5. A starting balance of 100,000 would now be 97842. I noticed the strategy sometimes suffers from news events which forces a Judas move through the Asian high or low followed by the true move against the now entered trade.
I'll carry on backtesting but I backtested from the end of Nov 2015 to June 2016 and it hit about fifty percent by the end of Feb, went down to about 25%, slowly made it back to around 50%, and then eventually went to minus 2%.
I should have thought of this earlier but that would have been during the run up to the referendum. I'll keep backtesting in the hope that price action stabilizes. Throughout May I was literally expecting a whipsaw, for it to go half way to my target, turn erratically, and take out my stop.
An EA would be awesome... I made one but I couldn't get one of the variants correct so still manually change. I made the video pre-clocks changing. So 7am now is the European open, and 8am is the London. If you're ever unsure, just open up rhe volume indicator and look at how much volume is traded at that time - so much more than Asian session
Thanks so much Matt. I may create another London Breakout Strategy video with a slight variance that I've been using lately which gets far bigger wins. It's a fair bit more complex, and probably best suited for expert traders, but will be good to demonstrate via a tutorial on here.
Recently found your channel and loving the content. Quick question. Do you use anything in the higher timeframe to confirm the trend (MTA) or is it just all in the 5 min chart?
Hi mate, typically with LBO, no - but my strategy has since evolved from the LBO and got a lot better. Nonetheless, LBO is profitable when sticking with the basics
@@TradeForexwithPaul thanks a lot man. This is actually your 2nd video I'm watching cos your style of trading resonates so much with me. So just reading down the comments and saw where you said you have more videos improving on this one. Now it's gonna be a binge watching for me. Again, Thanksalot for your work👍
I really liked the simplicity of the London Breakout Strategy. Do you trade any indicies or gold? I would like to see more. I am not doing will in a challenge with Surge Trader right now.
Hi Paul Really good vid I enjoyed this very much. I really like the London breakout as it fits in with good timing as I am based in Australia. I will try this out for sure. Paul is this the ''best or should we say the most profitable London breakout strategy that you have in your toolbox ?
Great stuff. No - I modified it heavily when I realised that price often comes back in. It transformed into how I trade today. Basically for simple best results - wait for the breakout. Dont trade it. Allow price to come back in to the zone. Let it reach an order block. Set a stop order. Set TP to be the daily average over a setting of 260. That'll make more money than any LBO video I've shown on UA-cam. You'll get less hits, but less losers, and a ridiculously higher RR. Additionally, if you can refine that OB to the 5m or 1m, I'll see you at the bank 😎💪
Could work well with CADCHF, especially when trading along with strong risk-on/risk-off sentiment. So, If Risk-on (equities are higher, commodities are higher, Gold and Bonds are lower) High-Betas like CAD should move to the upside and CHF usually sell off. And Vice-versa
That's great! Thanks Paul. I've a question, how you now, Tokyo and London session are 1H overlap together, so, should I watch market in start of London? or watch market after end of Tokyo?
I have testt the asian breakout, last 22 days, i got 12 loser and 9 winner, i trade it if a breakout is happen i make a pending order at high or low on on the asia session. and risk reward 1/2 is statisikly the best. i end up with 6 % profit after 22 days. i have checked r/r 1/1, 1, 1.5, 2 ,3 ,4 ,5 so 1/2 was the best next was 1/4 but then it wa sjust 4 % profit. Max lose in a row 6, max win in a roe 6. Looks like a decent strategie. But not evryone can handle the 6 in a row losses maybe they are more was just 22 days of testing. Ny indikator goes not more back. but i will keep testing it. I didnt test the original 1.5 r/r what you made.
Hi there, I’ve just watched this excellent video! I really like your way of teaching. You have a new subscriber and I’ve also liked your video to help with your channel which seems to be growing nicely. All the best-Neil (UK)
hey great video! I backtested from 4/1/21 until today 26/2/21--- 12 wins 26 losses, 339 pips gained, 533,4 pips lost. Seems this year has been quite tough, thoughts? are you still using this strategy?
Thank you Joe. And good job backtesting. The past 20 days of trading have been probably the worst on record for me for win-rate. % wise, I am barely up. Very tough market conditions. I'm creating another 3 videos on the LBO with ways on how you can look to filter your trades... some days I won't trade the LBO because of what happened during Asia, and other days ill scale in to positions. I had to trade a little bit in the Asian session this month to pass FTMO, but its been fantastic - ive really been able to hammer down a phenomenal percentage rate on the LBO by adjusting profit taking and entry points. I'll also fade the breakout now, whereas before I didnt. More coming soon mate, and well done for backtesting rather than jumping straight in 🙌📈🔥
👍Thanks -- a well-made video👍 Q: Paul, what about GMT/BST, do we start from 8 am in summer.?? If Japan doesn't change its clocks, does timezone-proximity narrow ? + What about Frankfurt kicking in if we start at 8 BST. A cluster ache on start times
At certain times of the year it will be 7AM where this starts from. It messes me up every 6 months when the clocks change. If ever unsure, just turn on the volume indicator to see when the real moves come in. Drop to the 1m and it becomes obvious
Hi mate, I'd say your risk is waaaaay too high if you lost 6 trades in there. Should be roughly -4% on a standard 1% risk. Itll work for months at a time, then stops for weeks at a time. Its all in the market cycles
Great video the London breakout interests me as my general trading is so hit and miss……mainly miss😁I’m going to back test then try on a prop trading challenge, so I can eventually leave work….if successful, many thanks
Thanks for the comment Don. I love trading this because its so simple. Lately the win/loss rate is nearer to 40%, but as long as you're targeting 2 or 3 to 1, you're good.
Backtest results for 20 days before the date 11/02/2024 Pair: GBP/USD Risk to reward. 1 to make 1:5 Result 9 Wins 11 Loseses = 2.5 Win Test two Pair: GBP/USD Risk to reward. 1 to make 2 Result 6 Wins 14 Losses = -2 Loss
Interesting strategy. Well just one point to mark here in your video you talk about static risk for example 1%, and so on. But with that strategy risk management is a little bit tricky. Because every time you have a different lower low or higher high swing. So there comes position sizing. I did a little backtest on 14 trades in one month , actually January 2023. Win rate was 78%. BUT very important is not to just blindly open trade based on that breakout level. You need a better win rate ratio and higher timeframe confluence. Because if you see in H4 resistance pullback then you will don't open trade against that resistance , etc ...
@@juochiokpala8384 It has to do with using ICT concepts with this strategy- fvg, order block, breakers, displacement. You can learn it from his 2022 and 2023 mentorship, it is free. Basically if a breakout took place with a displacement and a fvg formed, there is a good chance price will retrace to fill the fvg (imbalance) into the order-block which created the displacement.
Thanks for this Paul. A quick one I have noted that this strategy works well on a trending market. How do you trade it on a ranging market? Also do you consider to take trades if the Asian range has a very wide range? I am asking this because I have noted that when Asian mkt does quite a huge move price tends to make very less moves during the day hence potentially hitting our stop loss.
Hi Peter, good question mate. When Asia has been ranging quite heavily, I tend to be more cautious and want a stronger break. Alternatively, I'll look within the last few hours compared to the rest of the session. If I can get a convincing break of the last few hours, I'll get stuck in - otherwise, I tend to stay out these days.
@@TradeForexwithPaul Thanks for the response mate. I have been backtesting this strategy on the 5 & 15 min TF and it works like magic. It has a very convincing win rate.
Hi there Paul, thanks for the great video. I would like to know, does the strategy change or perform differently when London opens an hour earlier in the summer and a hour later in the winter? Hope that makes sense, thanks.
Thanks for the kind comment mate. That always catches me out too, so to solve it when the clocks go forward soon- turn on the volume indicator to see what time Europe starts. There should be very little volume traded at rhe end of the Asian session, then when volume picks up at the start of an hour, thats likely Europe, then the hour after volume should be very strong and that'll be the London session
Paul, brilliant content. Can I ask a quick question. It looks like you use the ZigZag indicator to tell you those swing points. If so, what settings do you use?
Thank you! I really appreciate the comment! I don't share too often who my broker is, but for the past 2 years I've used PepperstoneUK Razor account. Really tight spreads and low commissions. Also, they're FCA regulated - meaning I'll get my money back out ;) I used to use Oanda and LOVED their software! But their spreads were slightly too large for some of the scalping I do. Hope that helps mate?
hi i love this video but i have a question . London session overlaps over asian session for about 1 hour so do i mark high and low rite after london session opens or do i wait for asian session to fully finish which overlaps london session then take terades after that ?
8jan - current day 6/11. Winrate 64% Rr1.5 10.5r profit after testing. And what i noticed that almost every trade has drawdown and by analysing more i would say it's better to find fvg and enter from it. But its very suspicious for me that its giving profits. So i will go and backtest full 2023. And today we have loss
Hey Paul, firstly many thanks for all that you do on this channel much appreciated mate. I was wandering if you could make a video when feasible on how to spot fakeouts on the breakout strategy many thanks in advance.
Sure mate, thank you for reaching out. I will cover that soon I think. It's been a while since I traded the LBO because it's evolved into how I trade nowadays, but there were some obvious reversal patterns happen on the LBO. Will cover this for you
Backtest results for 5 days :
19/2 to 23/2/2021.
Wins 4 with 1.5 RR
Loss 1 with 1 RR
Stoploss : Recent swing plus/minus 4 pips.
Total Pips : 30+25+24+33 - 34 = 78 pips. 👍
Amazing - well done mate :)
@@TradeForexwithPaul Thanks for this strategy Paul. First loss of the week is today. Will backtest in coming weeks as well.
What about you Paul this week, did u take any trades based on this strategy??
@@tamilkumar7147 I took just 1 trade last week and lost. But thats ok, as its probabilities playing out. Great work with your backtestint there mate
..5 days? That's not nearly enough to verify it..
@@animal9470 Yh pointless really. Need at least 6months for a 5min strat.
Using replay in TV, I traded between 29th May and 26th June. There was only one day I couldn't get a trade and 15 were within the first two hours. That aspect was great.
I won 11 out of 20 at 1 to 1.5 RR.
Had I been trading on a 100k prop account I would have seen it go from 100,000 to 106,612 which is not too shabby for a hands off system.
Many thanks Paul.
Do you still trade same strategy ?
Thanks for uploading this content. Nice to see someone genuine instead of 20 year olds selling scam courses
Ive ran the entire week last week on this system and have 5 from 5. Really awesome
Noice!
Hi , you still using same strategy ?
I just love your genuine politeness and simple honesty. Thank you.
Thank you so much :)
I optimised it a little bit, try to add a Volume indicator to avoid false breakouts on your charts (you can use the default one on trading view) with a 10 or 20 MA and add to your charts the ATR indicator as well. You can set your SL based on the average ATR values and can increase your Risk-Reward-Ratio to 2:1 or even 3:1.
Well done mate - thats exactly what I want to see people do - adapt and improve 🙌📈
Hi there, can you explain further how using the ATO you would calculate the stoploss and return on profit? Sorry I’m a bit of a Newby so I need a little more explanation.
@@seangarrett1567 hi mate, its typically a manual calculation for SL and TP when using any set stop.
The average true range is usually the average of the last 12 or 14 candles (I dont use it, so from memory of seeing it when I started out). From here, find a position size calculator online to determine how much ££ to use based on the ATR stop, and set a target, or trail the stop behind the nearest swing and follow the market as far as it wants to go.
Good luck mate - and dont forget to backtest to work out your optimal targets and literally just stick to them every day.
@@seangarrett1567 ATR means Average True Range and it tells you the average movement of N Candles (in default 14 candles) over a specific timeframe (depends on your chart). That gives you an idea for the realistic upcoming movements in the future. Based on that you can set your SL - if no crazy fundemantel news are published it probably should move like the ATR value. You have to play around a little bit with it, i see a lot of people multiply the ATR Value with 1,5 or 2, just to have a little bit more space. Hope it helps, best of luck!
I've been trading this for more than 10 years now. If you think that's a long time there are some traders. that have been using it since the 90's. It's been a consistent winner for me. I've done very well applying the basic ideas of this to futures, crypto and stocks as well although it's slightly different. When choosing pairs to use this on many of the minors do well also.
Thats brilliant to hear mate. Dont see it ever failing over a sustained period of time
21 Dec 2020 - 13 Feb 2021 = 19 Wins/19 Loss // 1:1.5 // +9.5%. Not too bad at all!
I used to trade a very similar strategy with the NYC session (EURUSD/GBPUSD).
Fantastic job mate!
I've got something similar coming up with the NY session and Asian sessions.
Great work - I'm really pleased for you 😀
Okay! Well up until 7:30 this morning I was ready to throw the towel in but I decided to do a bit more digging around on UA-cam for some inspiration. After a couple of “same ol” videos I came across yours. I had nothing to lose so I jumped on the charts and marked the zone out on GBP/USD and waited, sure enough I nice bullish candle broke through and closed above the the zone. I was using the demo account for back testing so I kept an eye on it (I know it’s fire and forget, which I will do on the real account) I kept the TP at a conservative 1.25% and within the hour hit it 😳 I’m hoping 🤞🏻this simple strategy will finally be a way to keep trading and building my small account. Thanks Paul for giving me hope an inspiring me to persevere.
Weyhey! loving this! August has been horrendous - So I hope you've had more luck than I have! (A little tip I didn't put into the video... trade off the pullback to the range - it shortens your SL, and makes your TP much larger. It also means that you take less trades, and you can also identify more fakeouts, so you can avoid losses easier. Less trades per month, but FAR MORE profitable!). Keep up the good work!
A well explained video as always, from my experience on trading, one thing I can attest to is that with adequate support from a qualified personnel can go a long way in helping you gain unvarying profit.
Trading is a really demanding job, so there is no problem getting assisted
To qualify as an Independent trader you have to master multiple strategies.
Dustin Fallon I am also inexperienced can you tutor me or is there a way I can join your team?
I am under the supervision of the experienced CONS. Edwin Earl and I depend on his trading pattern to make me profit.
consultedwinearl@gmail com
Backtested this with a few changes on NQ from over the previous 43 trading days from 20/10/2023 using a 3m chart.
Using 2 contracts with a 1:1 RR and once TP1 was hit 1 contract was sold and stop moved to breakeven with a 1:2 target on TP2.
Must enter after London open and prior to New York open, only entering on body closes above or below the Tokyo High or Low (body value not wick value).
After 43 trading days there was 35 trades taken with 8 losers resulting in a 77% win rate and a net point gain value 860. Meaning if traded correctly this strategy would have had a $17,200 gain using 2 contracts.
The strategy could be optimised again so once TP2 (1:2) was about to be hit stops moved to TP2 and let the market run to 1:3 or 1:4 or deploy a trailing stop after 1:2 etc.
Great video and couldnt agree more that sitting in front of charts when trading a mechanical type of system like this is not the way to do it, have the system set and let the probabilities play out.
We are the house and the house always wins.
Blimey - nice work mate! Adjust the RR/Targets and figure how to maximise the SL... Also - use stops instead of POs and you're golden
Forex trading is all about eliminating the losing trades and achieving more winning ones. Most traders will rely on trading strategies that haven’t been tested thoroughly, setting themselves up for a failure.
The only solution is to try out the leading strategies for yourself and see what actually works.
Absolutely, Forex is quite a lucrative venture
Currency trading is a game of trial and error.. I’ve made so much trade losses this past months
There’s too much risk involved in trades
@@amandafoy4455 trading is tough and that even the best traders have substantial losses along the way. I literally went from cubicles with small trading accounts of about $10,000 to making trade profits in millions in just a few years.
backtest result 6 Nov - 5 Dec 2023
i only changed the risk to always be 1% but reward always 1.5
4 days no trade
18 trades
10 wins
8 losses
1% risk on each trade
7% profit after this period
but after 18 days you would have passes 8% and thats enough for first challenge phase on funding account
Great job!
Hey Paul, you're simply awesome in the way you presented this strategy. You've brought so much clarity to me. I'm really grateful for coming across your video. Thank you.
Thank you so much!
Paul, thank you for this straight to the earth educational video.
I have backtest the strategy with a little modification.
I wait on 1hour Timeframe , wait till 8am GMT candle close on GBPUSD, then set pending BUY STOP orders 5pip on the HIGH and SELL STOP on the Low of the 8am GMT Candle which got activated, then I delete the non activated order, then place my Stop loss (usually btw 30 - 39pip) below or above the next swing.
I close my chart and check back at 11am GMT
Result: I have done 9% on a 100k Demo account in 2 week using only this strategy. (7 wins , 1 loss). I am hoping to purchase my FTMO challenge using this strategy.
Please advise as you may wish
Thank you once again, Paul
Oh man, I am so sorry - I completely missed this comment!
That's an amazing adjustment and fantastic results. Have you stuck with it? If so, how have you done?
Did 40 trades from 28/3 to today and got a negative profit of about -7%.Pretty confident i'm doing it right
You might be mate - it seems to be working less and less so a further SL is needed half the time
Paul, thank you for making this video! Absolutely enjoyed your detailed explanation! I like it when you set out the expectation of this strat straight away within the first minute of the video!
Love this! Thank you so much!
Thanks. Your voice is calm and reassuring.
This is nice to hear, thank you :)
I backtested this strat, though modified the stop loss size to be 1.5XATR.
75 tests -> Tested from August - December 2020.
52% WR at 1:1.5 R:R,
55% WR at 1:1 R:R,
46% WR at 1:2 R:R.
Probably some human error in the backtesting.
Your strat with a wider SL seems to work better. I might try increase stop to 2XATR. Noticed mulitple times price would just stop me out and then go in my direction. Also with the tight stop loss the TP was usually hit within 3-10 candles, And when it failed it failed instantly (Also worth testing the failed breakout strat -> when price crosses back within range take opposite trade)
Really well done mate!
I've had varying success with ATR based stops.
I now trail my stops and place my original stop a certain no. Of pips. My win rate is lower, but my RRR is significantly higher.
Cracking job with the backtesting 💪📈
can u tell us what number of pips do u trail your stop? appreciate you
@@tekkenlong my initial stop is 3 pips and trail behind the latest swing 📈
Fantastic video mate. I also created an alert at crossing high and low points, using Once Per Bar Close. This worked out well so that I didn’t have to watch the charts for our trigger points.
Nice work mate
Thank you so much Paul. You explained it so well and simple. Am going to start back testing and come back to share my results. See you mate
Thank you
so what are your results? i am going to test this for the month of november
An excellent and simple way of explaining London breakout strategy, thankyou sir, Haseeb from Pakistan
Thank you Haseeb
Thanks Paul, I really like your explanation of this strategy and I also think it’s the best explanation and demonstration of the London breakout Ive ever seen. Ive seen a few versions of the London breakout on UA-cam but most other channels don’t really seem to trust what they’re saying (in regards to generic London breakout). In contrast, the belief you have in your method is another win for me as well as the clarity you explain each step with.
This is the first video I’ve seen of yours and I really like what I saw. It was very helpful to me, thanks! 😊🙏🏼
Love this! Thanks mate. I'm just editing a video currently about a London breakout reversal which plays out more often that this recently, how to trade it, and how to minimise risk massively.
Thanks again 📈
@@TradeForexwithPaul thanks Paul that sounds brilliant, exactly the type of content I’m looking for. . I’ve subscribed. I’ll be watching more content from tomorrow. Keep up the great work & take care!
@@JayHennigan thanks very much mate. Will be putting more effort back in to the channel soon
A stratergy I noticed when I first started trading, and use a simnilar technique when market flattens out, I put pending trades above and below price. I actually put a trade in on the false break out with a tight training stop and more often than not catch a small profit before main breakout.
Perfect mate - good to see someone observing the markets properly
Awesome video Paul and it’s great to see your favourite strategy in full swing!🔥🔥
Thanks so much Lewis! Hopefully you can pick this up too mate. Very simple strategy that works soooo well! Thanks again mate.
Seen many about London break but yours is one of the better ones. Will try this.
Definitely the best one :)
Though, target the daily ATR instead - much better return
👍Thanks, your calm voice is very reassuring -- like a driving instructor who has confidence his learners will pass their test. Then: 7 am GMT is now 8 am BST, in April?
Thank you :)
Yes - for a week or so, the charts shift between UK times and US times whilst one plays catch up with the other on DST. Typically though, LBO occurs at 8AM UK Time
Mate a big thank you for this well explained strategy which I have followed for the last 9 days, winning on 6 occasions using a 1.5 RR. I have got a good breakout strategy for the US30/DJ30 too which has won 7/11.
Very nice! Well done!
@@TradeForexwithPaul thank you my man. Love your videos.
You're welcome 😊
Just a quick question mate, based on that 100k FTMO challenge you were talking about and a +1.5% win, what size lot did you base that on please.
1% of the account each trade
I back tested this strategy today, for about 10 days back only 1 won. The win rate is %10. If the R/R is 1.5 then the lose is more than gain.
Just watched this and your other LBO videos. Really enjoyed them! I've always been attracted to LBO strategies and seeing other traders' versions of them. Have you made any adaptations to account for choppy markets and fakeouts, as range breakout strategies are vulnerable to that? Thanks for taking the time to share your ideas with us. I look forward to more videos on this topic. 👍
One coming up shortly mate!
Thanks so much for the kind feedback. I'm definitely a LBO specialist and have multiple pairs and strategies for it... some I won't share on YT, but others I will.
Stick around mate. Thanks again :)
Great video!! I appreciate how in detail you are on the key points. Subscribed!!
Aww thank you so much.
Be sure to backtest and adjust to suit your personality.
If you combine it with my video about trend following (most recent one with the thumbnail which says 50% monthly) - you'll do very well for sure
Thanks so much for this video.
Such a great n simple method..❤
Youre welcome
Very good video, well explained and very good win ratio backtesting. Keep up the good work 👍🏽
Really appreciate this mate, thank you
Great video! I’m starting to learn forex and have been told about this strategy. You explained it so well
Thanks so much Sofia! The past month has been hard on the strategy, but with market conditions altering on the higher timeframes, it should start showing good results again.
Definitely backtest as far as you can and make sure you understand the concept of the strategy, then make adjustments to fit your own style of trading.
I have another 3 London breakout videos lined up before moving on to other strategies that I've learnt over the years, and these videos should give you some ideas on how to extract the most out of the market, rather than setting a hard take profit.
All the best 🙌📈🔥
Please u still using this strategy
Great video Paul. Keep the awesome content coming
Thank you Sam! Should be weekly uploads fairly consistently over the coming months. Thanks again mate.
That's really nice.
Thank you for taking the time to share - very clear and easy to understand
Thank you so much for the kind comment Peter! I really appreciate it and I hope you find good value in my videos 😊
Backtested 18 trading days. 18 trades: 7 wins and 11 losses. Win rate of approx 40%
Boom! Nice! Now change your targets from a small RR to a larger one and see how you can trade moving forwards 💪. Keep it up
Perfectly teaching. Thanks much dear Paul
Thank you!
Thought I'd revisit this Paul. So past 14 days tested, 9 wins 5 losses which is still pretty good. I then looked at M15 trend and 4 losses were against trend and so was 1 win. I noticed 1 loss however was a loser in either direction. So I reckon if you took M15 into account it's possibly 12 wins 2 losses. I need to go through it again but M15 bias definitely helps and if you filter M15 consolidation it would improve further. For changes in trend you will always get caught out but this is a great strategy, thanks for sharing!! I will do more back testing but with M15 🙂
Probably about 4 or 5 am
Yes Paul! Thanks for filming this! Might have to use this for myself!
Thanks for the kind words Joe! Definitely give it a go! Let us know what results you get and don't hesitate to ask if you have any questions!
Thank you for a well explained and easy way to trade,look forward to using this strategy.
Thank you!
This is what I'm looking for Trading in London Breakout, Best Strategy and Subscibed !
Thank you :)
Very simple and useful strategy. Thank you!
Thanks Oleg, give it a go and backtest and let me know how you get on
Thank you Paul for sharing a great strategy and really helpful with the way you engage us your viewers to learn at the same time ☺️☺️
Ah thank you so much, it's my absolute pleasure - the least I can do after you've taken the time to watch my video :)
I'm just about to start FTMO this week also with this strategy, wishing you luck for your challenge 👍
Good stuff - let us know how it goes 🚀
How did it go?
Hi Samuel, how do you score on your FTMO challenge with this strategy? Would be very helpful for us if you could share your experience!! Thank you in advance!
@@ShomonRobie Hi Shomon, sorry it didnt work as a strategy, good luck with your trading.
Update on my previous post. I have now tested 34 days on Trading View replay. Unfortunately my win rate has dropped to 14 wins out of 34. with a RR of 1 to 1.5. A starting balance of 100,000 would now be 97842. I noticed the strategy sometimes suffers from news events which forces a Judas move through the Asian high or low followed by the true move against the now entered trade.
Good job mate - try using the daily ATR smoothed over 210 days as the target. Watch your RR soar
I'll carry on backtesting but I backtested from the end of Nov 2015 to June 2016 and it hit about fifty percent by the end of Feb, went down to about 25%, slowly made it back to around 50%, and then eventually went to minus 2%.
I should have thought of this earlier but that would have been during the run up to the referendum. I'll keep backtesting in the hope that price action stabilizes. Throughout May I was literally expecting a whipsaw, for it to go half way to my target, turn erratically, and take out my stop.
How are you getting on mate? I've had to adjust the strategy due to the market being a little different in Q2 and 3 this year
Hi Paul just revisited the video to help reinforce my knowledge - thank you again
Thank you for the comment :)
Great Video! Thank you for your work! would love to build EA
Another question: 7am London time?? you mentioned GMT.. so.. my GMT is 8 am in London
An EA would be awesome... I made one but I couldn't get one of the variants correct so still manually change.
I made the video pre-clocks changing. So 7am now is the European open, and 8am is the London.
If you're ever unsure, just open up rhe volume indicator and look at how much volume is traded at that time - so much more than Asian session
Back test results from 3 July - 31 August, '23: Results were 65% win rate. Avg win: 36.48 pips/ Avg loss: 22.34 pips. Highest gain: 80.5 Highest loss: 42.8 Total 43 trades SL: 1% TP: 1.5%
Great job
Loving the Video Paul - great content as always 🙌
Thanks so much Dhruvesh - I really appreciate that :)
Man I subscribed and comment boz u look and sound very honest guy
Thank you so much!
Love this video Paul! Keep them coming!
Thanks so much Matt. I may create another London Breakout Strategy video with a slight variance that I've been using lately which gets far bigger wins. It's a fair bit more complex, and probably best suited for expert traders, but will be good to demonstrate via a tutorial on here.
Fantastic! I'll be implementing this going forward!
Thats fantastic news! Thanks so much for your support mate 👍
Great content never tried this version of the strategies before I will give it a go.
Thank you David :) How are you getting on with it?
Recently found your channel and loving the content. Quick question. Do you use anything in the higher timeframe to confirm the trend (MTA) or is it just all in the 5 min chart?
Hi mate, typically with LBO, no - but my strategy has since evolved from the LBO and got a lot better. Nonetheless, LBO is profitable when sticking with the basics
Did 19 GU, with 4Losses 15 Profits😮
📈👀 great work mate
@@TradeForexwithPaul thanks a lot man. This is actually your 2nd video I'm watching cos your style of trading resonates so much with me. So just reading down the comments and saw where you said you have more videos improving on this one. Now it's gonna be a binge watching for me. Again, Thanksalot for your work👍
Thanks for the video. I’m starting Monday morning!
Loving this, thank you. Backtest it first though and refine your reasons for entries to cut back on losses.
Best of luck 📈💪
I really liked the simplicity of the London Breakout Strategy. Do you trade any indicies or gold? I would like to see more. I am not doing will in a challenge with Surge Trader right now.
I hope your fortunes changed mate. I trade gold sometimes. Not as often as I used to. Havent ever traded indices
Love it!!! Awesome job, thanks so much for sharing.
Thanks Dee!
@@TradeForexwithPaul You're welcome.
Hi Paul Really good vid I enjoyed this very much. I really like the London breakout as it fits in with good timing as I am based in Australia. I will try this out for sure. Paul is this the ''best or should we say the most profitable London breakout strategy that you have in your toolbox ?
Great stuff.
No - I modified it heavily when I realised that price often comes back in. It transformed into how I trade today.
Basically for simple best results - wait for the breakout. Dont trade it. Allow price to come back in to the zone. Let it reach an order block. Set a stop order. Set TP to be the daily average over a setting of 260.
That'll make more money than any LBO video I've shown on UA-cam.
You'll get less hits, but less losers, and a ridiculously higher RR. Additionally, if you can refine that OB to the 5m or 1m, I'll see you at the bank 😎💪
Could work well with CADCHF, especially when trading along with strong risk-on/risk-off sentiment. So, If Risk-on (equities are higher, commodities are higher, Gold and Bonds are lower) High-Betas like CAD should move to the upside and CHF usually sell off. And Vice-versa
Yes, very good pair, but tricky with the spreads sometimes depending on which broker. Not a fan of it on the FTMO account though!
That's great! Thanks Paul.
I've a question, how you now, Tokyo and London session are 1H overlap together, so, should I watch market in start of London? or watch market after end of Tokyo?
I used to watch at 8am UK time
April month 2024 wins 7 loss 2
+8.5r thats 8.5% already pass phase 1
Nice one mate
Great video Paul 👊🏼🎥
Thanks Aaron, I appreciate the comment.
I have testt the asian breakout, last 22 days, i got 12 loser and 9 winner, i trade it if a breakout is happen i make a pending order at high or low on on the asia session. and risk reward 1/2 is statisikly the best. i end up with 6 % profit after 22 days. i have checked r/r 1/1, 1, 1.5, 2 ,3 ,4 ,5 so 1/2 was the best next was 1/4 but then it wa sjust 4 % profit. Max lose in a row 6, max win in a roe 6. Looks like a decent strategie. But not evryone can handle the 6 in a row losses maybe they are more was just 22 days of testing. Ny indikator goes not more back. but i will keep testing it. I didnt test the original 1.5 r/r what you made.
Adjust the target mate - target 60 pips, It was the median average for the day after the breakout from memory
@@TradeForexwithPaul So instead of setting TP to 1.5R, simply now target 60pips?
This is looking to be a game changer. Thanks Paul. Just one question...
Do we change anything in BST ?????
For a week or so it changes until the Americans catch up
Keep it up my brother, you've something so great. Good job
Thank you my friend :)
Thank you so much for sharing this info! Much appreciated!
Really appreciate the comment here too dude
Hi there, I’ve just watched this excellent video! I really like your way of teaching. You have a new subscriber and I’ve also liked your video to help with your channel which seems to be growing nicely. All the best-Neil (UK)
Thanks so much man :)
hey great video! I backtested from 4/1/21 until today 26/2/21--- 12 wins 26 losses, 339 pips gained, 533,4 pips lost. Seems this year has been quite tough, thoughts? are you still using this strategy?
Thank you Joe. And good job backtesting. The past 20 days of trading have been probably the worst on record for me for win-rate. % wise, I am barely up. Very tough market conditions.
I'm creating another 3 videos on the LBO with ways on how you can look to filter your trades... some days I won't trade the LBO because of what happened during Asia, and other days ill scale in to positions.
I had to trade a little bit in the Asian session this month to pass FTMO, but its been fantastic - ive really been able to hammer down a phenomenal percentage rate on the LBO by adjusting profit taking and entry points.
I'll also fade the breakout now, whereas before I didnt.
More coming soon mate, and well done for backtesting rather than jumping straight in 🙌📈🔥
I got the same results
👍Thanks -- a well-made video👍 Q: Paul, what about GMT/BST, do we start from 8 am in summer.?? If Japan doesn't change its clocks, does timezone-proximity narrow ? + What about Frankfurt kicking in if we start at 8 BST. A cluster ache on start times
At certain times of the year it will be 7AM where this starts from. It messes me up every 6 months when the clocks change. If ever unsure, just turn on the volume indicator to see when the real moves come in. Drop to the 1m and it becomes obvious
@@TradeForexwithPaul Thanks, Paul, you are a real pro to have such answers at your fingertips -- and a gent for replying.
Easy strategy but not profitable. Backtested it. Out of the 8 straight trades I took, only 2 were in profit. The rest were losses, with -14.61% PL.
Hi mate, I'd say your risk is waaaaay too high if you lost 6 trades in there. Should be roughly -4% on a standard 1% risk. Itll work for months at a time, then stops for weeks at a time. Its all in the market cycles
Thankyou really enjoyed your vid and like the way you teach. Have subscribed. Will have a go backtesting this one.
using this strategy to pass a FTMO challenge
Good luck mate
Great video the London breakout interests me as my general trading is so hit and miss……mainly miss😁I’m going to back test then try on a prop trading challenge, so I can eventually leave work….if successful, many thanks
Great job mate
I also can wait to try this out look very simple watching if this is the way forward am all 👍
Thanks for the comment Don. I love trading this because its so simple. Lately the win/loss rate is nearer to 40%, but as long as you're targeting 2 or 3 to 1, you're good.
Backtest results for 20 days before the date 11/02/2024
Pair: GBP/USD
Risk to reward. 1 to make 1:5
Result
9 Wins 11 Loseses = 2.5 Win
Test two
Pair: GBP/USD
Risk to reward. 1 to make 2
Result
6 Wins 14 Losses = -2 Loss
Good work mats
*mate
Great video Paul. Thanks for sharing
Really glad you enjoyed it Thomas - thanks for watching!
Interesting strategy. Well just one point to mark here in your video you talk about static risk for example 1%, and so on. But with that strategy risk management is a little bit tricky. Because every time you have a different lower low or higher high swing. So there comes position sizing. I did a little backtest on 14 trades in one month , actually January 2023. Win rate was 78%. BUT very important is not to just blindly open trade based on that breakout level. You need a better win rate ratio and higher timeframe confluence. Because if you see in H4 resistance pullback then you will don't open trade against that resistance , etc ...
Love that you've broken it down further mate. Its exact analysis like that which helped me evolve the strategy to how I trade today
You can adjust this for much better entries with much smaller stops if you enter from the nearest order-block instead of the break-out candle.
Yeeeaaah! You know what you're looking for 🙌🏼.
Can you explain this further?
I instead waited for a retest of the breakout candle and a continuation during retest, to reduce fakeouts
@@juochiokpala8384 It has to do with using ICT concepts with this strategy- fvg, order block, breakers, displacement. You can learn it from his 2022 and 2023 mentorship, it is free. Basically if a breakout took place with a displacement and a fvg formed, there is a good chance price will retrace to fill the fvg (imbalance) into the order-block which created the displacement.
@@Noiconnotag thank you so much. I'll look it up
Can’t wait to try this out 📈
That's awesome Ben! Let us know what results you get!
This is awesome mate. Thanks so much for sharing!
Thanks Shane, I really appreciate the kind words! Hopefully it's been useful for you?
@@TradeForexwithPaul Was spot on
Amazing video Paul!
Thank you Michael! I hope you learn a few things from it :)
Thank you for your valuable content
Thank you so much!
Thanks for this Paul. A quick one I have noted that this strategy works well on a trending market. How do you trade it on a ranging market? Also do you consider to take trades if the Asian range has a very wide range? I am asking this because I have noted that when Asian mkt does quite a huge move price tends to make very less moves during the day hence potentially hitting our stop loss.
Hi Peter, good question mate. When Asia has been ranging quite heavily, I tend to be more cautious and want a stronger break. Alternatively, I'll look within the last few hours compared to the rest of the session. If I can get a convincing break of the last few hours, I'll get stuck in - otherwise, I tend to stay out these days.
@@TradeForexwithPaul Thanks for the response mate. I have been backtesting this strategy on the 5 & 15 min TF and it works like magic. It has a very convincing win rate.
Great video! Thanks for sharing 👌
Thanks Phily, I'm glad you like it!
Hi there Paul, thanks for the great video. I would like to know, does the strategy change or perform differently when London opens an hour earlier in the summer and a hour later in the winter? Hope that makes sense, thanks.
Thanks for the kind comment mate. That always catches me out too, so to solve it when the clocks go forward soon- turn on the volume indicator to see what time Europe starts. There should be very little volume traded at rhe end of the Asian session, then when volume picks up at the start of an hour, thats likely Europe, then the hour after volume should be very strong and that'll be the London session
Awesome strategy.
Thank you
Paul, brilliant content. Can I ask a quick question. It looks like you use the ZigZag indicator to tell you those swing points. If so, what settings do you use?
Thanks mate. I just use a path tool to draw the zig zag on. I use only the inside bar indicator to help me spot them better
Awesome! Thanks for the update Paul! Btw which broker do you recommend? With the best spread I mean ;)
Thank you! I really appreciate the comment!
I don't share too often who my broker is, but for the past 2 years I've used PepperstoneUK Razor account. Really tight spreads and low commissions. Also, they're FCA regulated - meaning I'll get my money back out ;)
I used to use Oanda and LOVED their software! But their spreads were slightly too large for some of the scalping I do.
Hope that helps mate?
Great content! I will test it out.
Excellent Hassan, thanks for the kind comment!
hi i love this video but i have a question . London session overlaps over asian session for about 1 hour so do i mark high and low rite after london session opens or do i wait for asian session to fully finish which overlaps london session then take terades after that ?
Great video. Well explained. Thanks 🙂🍻🍻
Thanks so much Tim
This was great so i subscribed :)
Thank you Kaz! 🙌🙌🙌
GREAT video nd technique. hope to follow you. i'm just starting to trading. setting up the account and all. from mexico.
Thank you :)
8jan - current day
6/11. Winrate 64%
Rr1.5
10.5r profit after testing.
And what i noticed that almost every trade has drawdown and by analysing more i would say it's better to find fvg and enter from it.
But its very suspicious for me that its giving profits.
So i will go and backtest full 2023.
And today we have loss
The way it goes mate
Hi, can we use any other currencies pairs ?
CHF worked well when I did it :)
Hi paul thnx for making this video! I've a question. I live in the Netherlands, wiche time do I set the Sydney Session? Thank you in advance.
I think you're 2 hours ahead of me mate. Maybe 1. Worth checking on google
Hey Paul, firstly many thanks for all that you do on this channel much appreciated mate. I was wandering if you could make a video when feasible on how to spot fakeouts on the breakout strategy many thanks in advance.
Sure mate, thank you for reaching out. I will cover that soon I think. It's been a while since I traded the LBO because it's evolved into how I trade nowadays, but there were some obvious reversal patterns happen on the LBO. Will cover this for you