Introduction

This article is a continuation of "London Box & London Breakout" published last week, where essentially I introduced the code used in this strategy, and how it finds its base logic in the London breakout strategy. So please check it since some parts are not repeated here.

The 'iLondon'

You can download here the first .zip file, and extract the content on your preferred strategies folder. Once loaded and compiled the code on JForex platform, you will have to set some parameters:


  1. Select the instrument to work with. In the downloadable file however, you will find a file for each of main instruments.
  2. Set the opening time of the last 30 minutes candle opening before the session you prefer to work with. So, considering London session starts at 7.00AM broker time, here you will have to set 6:30AM.
  3. Pre-session box and labels color settings, based on your preferences and chart theme.
  4. Referred to the pre-session box. Llines style: 0 stands for the "solid line" until 6 which stands for the "line-dot-line" one.
  5. End time has to be the same set at point 2. Start time, for London session, comes 4 hours earlier so meaning 3:00AM. Since the code works in 30minutes chart, the time will finally be 2:30AM so to get the very first tick at 3:00AM. Start/end date must be the same. Set yesterday's date when London session is not yet open or last Friday date in case you run the strategy on Monday. The same of course applies during backtests: you have to set the date before the backtest starting one.
  6. When a breakout will happen the strategy will ring the alarm you set here. In the downloadable .zip you will find a .wav file: save it on your C:\\...\JForex\Mystrategies folder: JForex will be by default, able to read only that folder. Eventually you can set any other .wav file.
Once you finished to set personalized data and run the strategy, the chart will appear as the example below (GBP/USD 30minutes):


The 'iLondon Widget'

This strategy ideas is a kind of co-working between two tools. You can download here the second .zip file and extract the content on your preferred strategies folder. It's a very simple tool that opens a small widget on the top left corner of your chart. But let's see in detail starting from the beginning. Here's the window to set input parameters:

  1. The downloadable .zip already contains 1 file for each main instrument. However, here you can set your favorite instrument and widget color. The tool will be loaded in the last active chart, so you have to click on the chart you want it loaded, and then after that, click to start the strategy from JForex.
  2. Here you can set the pips distance from the order (this will be explained better in next section).
  3. And finally the position size: I recomend to start with a very small size then eventually increase once you get the strategy logic.
This next picture shows how the widget will appear:


A quick detailed illustration of each button:


  1. Create a buy or a sell LIMIT ORDER. Position size will be the one set when loading the tool. It will open ONLY 1 order. If you click again, it will simply reload the order price (we'll see this later).
  2. Set breakeven if profits > 1pip.
  3. These will draw on the chart the entry price (and so eventually delete it) with its related stop and take profit lines.
  4. This will cancel the eventually set order, or will close the eventually running position. The tool will work independently ONLY with its opened orders, so no worries!
The strategy

Now that presentations are done, let's finally get into the strategy and I would start from the list of (suggested) required components:
  1. A 30minutes chart to have a larger view of intraday moves.
  2. A 1minute chart with:
  • - ema 300periods applied at close price.
  • - suggested: macd (12,26,9) + daily and weekly pivot (don't buy the overbought right at daily pivot, please).
The 'iLondon' strategy, will load drawings in every chart open for the instrument, while the 'iLondon Widget' will work with the 1min chart even though I do not exclude the possibiliy for it to be effective in other timeframes.

Once a breakout happens, will it be bullish or bearish, the strategy will run the alarm to get your attention, change box colors and print a label on top-right corner to remind you the breakout direction, together with a reminder of daily direction. Look for example how it appeared on 14th June 2016 GBP/USD chart:


Essentialy I want from the code, to clearly put in front of my eyes if I'm in a bearish or bullish environment. The concept is to get 10-25 pips trades, so no need to predict where price will be, I need to react based on where price is.

There are 2 possible scenarios: trade pre-breakout and trade post-breakout.

Pre-Breakout

A good example comes from yesterday's (13rd June 2016) GBP/USD chart:


At London opening time, price went down pretty straight back where it found support in pre-session. After that, was possible to try a short with stop above the beginning of the move, in this case outside the box.

Pressing on SET Sell, would automatically set the order 1 pip below the line. Before setting the order, you can draw the entry line with stops and targets, to visually determine the possible risk.

In this scenario, inside the box, the target is always the lower line (or higher in case of long).
  1. DO NOT force the trade hoping for an epic 150pips move.
  2. DO NOT watch for it to re-test your entry, Move at breakeven if/when you see price moving towards the target: the button was created exactly for that.
  3. Remember that most of the times, while price will be inside the box, there will be a lot of rock-n-roll, so that's why the reason the label will say "CAUTION".
Post-Breakout

A good example comes from USD/JPY chart seen on 9th June 2016:


Price sitting on the ema after London and N.Y. closing time, with a bullish breakout and a clearly seen target area right 20-25 pips above. Stop loss in this case has to sit below the breakout line.
  1. DO NOT force the trade hoping for an epic 150pips move.
  2. If there is not a good target area (like the example), set target at 15 or 20 pips and that's it.
  3. Eventually, STOP LOSS can be set few pips below the entry.
Conclusions

There are further possible combinations for this strategy, and next week I will show more examples.
My Java programming learning curve is still in "oversold area": any suggestion will be very welcome!

Hope you will enjoy my work.

Thank you.
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