London-Session Intraday Momentum Breakouts with Daily Profit Limits

Summary

This automated strategy seeks intraday momentum breakouts during London trading hours. It opens a long when a bullish candle exceeds the prior candle’s high without breaking its low, or a short when a bearish candle breaks the prior low without exceeding its high. Doji candles and consecutive qualifying signals are filtered out. Position size scales with account equity, and fixed stop-loss and take-profit levels govern exits. After a profitable take-profit exit, the system blocks new entries for the rest of the day.

The document provides the entry rules, risk controls, configurable stop and target inputs, and a brief ETH/USDT futures backtest setup spanning January to February 2025. It reports no performance statistics, so it does not establish profitability. Its own caveats include false signals in sideways markets, slippage during fast moves, fixed stops that may suit volatility poorly, and sensitivity to parameter settings. The daily profit lock is inferred from whether the closing bar reaches the target, which may not fully establish how an exit occurred.

Key ideas

• Long and short entries require directional candle breakouts beyond the previous candle’s range.
• Doji candles and repeated consecutive qualifying signals are excluded.
• Trading is limited to London hours, and new entries stop for the day after a take-profit exit.
• Position size scales with account equity while fixed stop and target levels set trade exits.
• The document gives no reported backtest results, and flags range-bound conditions, slippage, and parameter sensitivity as risks.

Tags

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