London Session Moving-Average Breakout with Time-Based Exits

Summary

The strategy aims to trade breakouts near the London session open using a fast moving average and a slow trend filter. A move through the fast average can trigger a long or short entry, provided the previous close is on the matching side of the slow average. The written description calls for a small stop and a time-based exit near the session close, with no profit target. It also suggests testing filters, moving-average settings, stop distances, exit timing, and position sizing.

The source uses a two-period simple moving average and a 200-period exponential moving average, and restricts entries to a 03:00–04:00 chart-time window. It specifies a stop distance and closes positions outside a later session window. The narrative is framed around GBP/USD, but published backtest settings instead identify BTC/USDT futures on an hourly chart over one month; no performance statistics are included. Session-time assumptions, instrument differences, small stops, and fixed exits limit what can be inferred about the strategy’s reliability.

Key ideas

• The entry combines a fast-average breakout with a previous-close filter against a slow average.
• Entries are limited to a specified session window, and positions use a fixed stop and time-based close.
• The source settings describe BTC/USDT futures, although the written strategy describes GBP/USD.
• The document reports no performance statistics and notes risks from stop-outs and fixed exit timing.

Tags

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