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,
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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 |
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Hi Doc:-) seems like when I backtest this on IG(only back to 13 apr 2012) it wins, but if I ass 2,5 spred it looses. what spread did you use?
Cheers
Kasper
*add 😉
Hello,
As I said, I didn’t use spread for the screenshot as I don’t trade Gold and I don’t know the spread… but if your spread is correct, the strategy is just loosing 🙁
Anyway it could be a nice idea to improve.Regards,
Hi,
I had been losing on gold and after I manually go through the 5min chart using IG and when there’s a breakout, the same behavior happens I found something on the same trend always using Bollinger, RSI and MACD.
But when sensing that a 5min chart a breakout going to happen, I have to switch to 1min chart to gain profits.
I manually went through all the way till year 2014/5 and calculate (unless I missed out something) and this seems to be working. Low profits like mayb 10-30 pips but win rate is high.
I need someone who wishes work with me to write the code and test it.
Not sure if I’m able to do something out.
Any interested party can write to me.
Thanks!
Hi Smurfy,
hope you are still there… I would like to help you to write and test the code.