Two-Day Forex Breakout Using Prior Daily Highs and Lows

Summary

This strategy compares the previous two days’ highs and lows to set a breakout order for the current day. It places a pending order at the prior day’s high when that day’s high-low range is higher than the range of the day before, or at the prior day’s low when its range is lower. Any order left unfilled at the end of the day is canceled. The author says the approach is intended for yen currency pairs, naming USD/JPY, EUR/JPY, and GBP/JPY.

The description says the expert advisor uses open-price operation but recommends testing with control points or every tick on a daily chart because order triggers depend on ask and bid prices. It offers no backtest results or evidence that the method is profitable. The suggestion that having no optimization parameters signals robustness is unsupported, and the author also says optimization may be needed to smooth equity. Spread, slippage, position sizing, and rules for equal ranges are not addressed, so the description alone is insufficient to assess live performance.

Key ideas

• The setup compares the previous two daily ranges to decide which prior-day boundary may trigger a breakout entry.
• Pending orders are canceled if they have not triggered by the end of the current day.
• The author names three yen pairs as the intended markets for the strategy.
• Ask and bid based triggers make tick-level or control-point testing relevant despite the open-price operating mode.
• No performance evidence or detailed risk controls are provided.

Tags

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