An Hourly Gold Breakout Strategy Around the London Open
Summary
The document describes an hourly breakout approach for gold based on a range formed overnight. It takes the highest high and lowest low over the specified eight-candle period ending at 5 a.m., then permits entries between 5 a.m. and 6 p.m. A move above the range triggers a long entry and a move below it triggers a short entry. The stop is set on the opposite side of the range, while the profit target is 1.8 times the stop distance. The author disallows accumulating orders and says a position should reverse if the next day produces an opposite signal.
The post claims the approach was profitable and provides trading rules and code, but no performance figures or supporting backtest detail appear in the text. The author explicitly says the illustrated backtest omitted spread because its value was unknown. Contract sizing, market session definitions, execution assumptions, and the robustness of the reported result are therefore unclear; the suggested parameters are presented as candidates for further optimization rather than established settings.
Key ideas
- The strategy defines an overnight price channel from hourly gold data and trades breaks of its boundaries.
- Entries are allowed during a stated daytime window, with the opposite channel edge serving as the stop.
- The profit target is set to 1.8 times the stop distance, and order accumulation is disabled.
- An opposite signal on a later day closes and reverses the existing position.
- The reported backtest omits spread, and the document gives no detailed performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.