A Morning Range Breakout Strategy for Major Currency Pairs
Summary
The document describes an intraday breakout approach for EUR/USD and GBP/USD on 15-minute charts. It marks the 09:00 candle as a range, then looks for a later candle that lies completely above or below that range. A stop entry is placed beyond the signal candle in the breakout direction, with at most one trade per day and trading limited to the daytime window. The setup is skipped when the range candle is at least 45 pips wide. Exits use a fixed 45-pip profit target or a stop at the opposite edge of the marked range, and open trades are closed overnight.
The author says the original ebook rules did not work well in their backtest and were simplified, but provides no performance results, test period, costs, or risk-adjusted analysis. The ebook’s claim of hundreds of consecutive winning trades is explicitly viewed as unrealistic. The strategy description therefore supplies rules to investigate, not evidence of profitability; execution details and robustness across market regimes remain unestablished.
Key ideas
- The strategy defines a morning price range using the 09:00 candle on a 15-minute chart.
- It enters in the direction of a later candle that closes entirely outside the range, using a stop beyond that candle.
- It limits activity to one trade per day and avoids days when the reference candle is at least 45 pips wide.
- Profit taking and protective exits are tied to a fixed target and the opposite boundary of the range.
- The author reports simplifying the original rules after a backtest, but gives no results to establish profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.