EUR/USD Five-Minute Breakouts After a Wide Eight-Bar Range

Summary

The strategy looks for EUR/USD moves in which the close is more than 60 pips above or below the open from eight bars earlier on a five-minute chart. A close above that reference triggers a market long; a close below triggers a market short. The rules specify one contract, prohibit order accumulation, and limit trading to the daytime session, flattening positions before the stated evening cutoff.

Each trade uses a 50-pip stop loss and a 225-pip profit target. The document identifies the instrument feed and assumes a two-pip spread. It reports no performance statistics or comparative tests. The author says backtest data were available only from November 2015 and asks whether someone could test the idea on a longer history, so the strategy’s robustness across market regimes remains unestablished. The signal uses a close-to-open displacement over the lookback interval rather than explicitly comparing the close with the highest and lowest prices in that interval.

Key ideas

• The system trades EUR/USD on five-minute bars when the close moves more than 60 pips from the open eight bars earlier.
• A qualifying move above the reference opens a long, while a move below it opens a short.
• Trades use a 50-pip stop and a 225-pip target, with trading restricted to a daytime window.
• The author reports limited historical testing and provides no performance results or extended validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.