London HCPro Breakouts Trading Strategy (considered “low risk”) – long term
This strategy is carefully designed and developed by Human Capital Pro for exploiting market breakouts to make profit. The strategy relies heavily on market volatility since to make profit it is a requirement that prices have to move greatly in one direction. Martingale elements can be used with caution.
London Session is one of the most liquid trading sessions and because of the high volume of buying and selling the transaction costs, such as the price spread, is reduced significantly. However, the most important part is that the market participants during that session are capable of creating trends, moving the market in one direction. That fact makes the London Session strategically important.
After 9:00 to 10:00 am (GMT +2) finding trends and breakouts is the main objective. Identification of Fibonacci Levels is critical.
“Find out WHEN the largest market participants, huge banks and financial institutions will take decisions to trade and go WITH the market trend formed as a result of their trading activities. Timing matters…”
Strategy Setup Requirements
Requirements for a solid strategy
- Trading takes place only after 9:00- 10:00 am, GMT+2, ( 7:00 – 9:00 am UK Time) until 11:00- 12:00 am, GMT+2, ( 9:00 – 11:00 am UK Time).
- Consult the Currency Heat Map for identify currency performance allowing you to chose the correct pair of currencies and place the trade when you expect the price to move rapidly in one direction. If you placed the trade and there is no rapid price movement soon it means is not a breakout.
- Identify support and resistance levels formed during the night (GMT+2) session (Sydney/Tokyo Session) and the price range associated with those.
- Don’t trade during news announcements scheduled at an exact time having the sign of “high or medium impact“.
Requirements for a solid strategy
- Reduce the risk of “no volatility” by trading when the market is expecting trends > this happens when there are important news and reports announcements scheduled during the day. Prefer trading on Monday to Thursday (if no news on Monday better not to trade Monday).
- Equal Take Profit and Stop Loss distance. 100-150 points (10 – 15 pips) average earnings/losses per trade > applies for FX based on expected trend move per day.
- Same amount of lot size per trade for at least 40 to 50 trades. A sufficient number of observations for statistical purposes and risk management.
About Day Trading (Intraday)
Day trading is defined as the purchase and sale of a security within a single trading day, thus it involves transactions, in and out within the day. Day traders are typically well-educated and well-funded, they have in-depth knowledge and experience in the marketplace, sufficient amount of capital and discipline, in connection with a solid strategy.
The market for FX and other products traded online is highly liquid and since there are always important news announcements, economic events, reports and company news it is expected that the market will be in most cases volatile, generating profit-generating opportunities daily. There are numerous intraday online trading strategies such as scalping, range trading, news and announcements trading and high-frequency trading (HFT) strategies that use sophisticated algorithms (using software for automated trading, i.e. Expert Advisers)
Risk Warning: CFDs are highly leveraged over-the-counter derivatives and due to their degree of complexity, trading CFDs carries a high level of risk and may not be suitable for all investors. Please be aware that this educational material does not constitute investment advice and does not take into account your investment objectives, financial situation or specific needs. This content is for educational purposes only and we accept no liability whatsoever for losses or damages resulting either directly or indirectly from the use of the information contained in this website. You take responsibility for your own trading decisions.