An effective GOLD Breakout strategy

Hello everyone,

I have used the “London Open Breakout” on the forex, a well known strategy.

I had the idea to optimize it on Gold.

It is profitable, with the following entry rules:

• GOLD, contracts 1€, hourly timeframe
• the breakout takes reference to the period from 20PM to 5AM (8 candles for me, because on my display I have no candle between 23PM and 12AM)
• we take positions from 5AM to 18PM
• stop loss : the other side of the breakout channel
• take profit : 1.8 x stop loss
• no cumulation of orders
• if we are “long” and the next day we have a “short”, we close the “long” and go “short”

Others parameters are profitable, it should be easy to modify them and optimize this strategy : 

• starting and ending of breakout channel
• starting and ending of positions
• stop loss / take profit
• accumulated positions
• etc.
  

This can be automated, of course.

On the screenshot, the backtest was made WITHOUT spread, as I don’t know it.

Best Regards,

Defparam cumulateorders = false

n = 10

// Timeframe : H1
// HORAIRES DU BREAKOUT : 20H à 05H

IF TIME = 050000 THEN
 HAUT = highest[8](high)
 BAS = lowest[8](low)
 achatjour = 0
 ventejour = 0
 amplitude = haut-bas
ENDIF

Ctime = time >= 050000 AND time <= 180000
Ccanal = close < haut and close > bas

IF Ctime and Ccanal THEN
 IF achatjour = 0 THEN
  buy n shares at HAUT stop
 ELSIF ventejour = 0 THEN
  sellshort n shares at BAS stop
 ENDIF
ENDIF

IF longonmarket THEN
 achatjour = 1
ENDIF
IF shortonmarket THEN
 ventejour = 1
ENDIF

set stop loss amplitude
set target profit amplitude*1.8