This strategy is only for the GBPUSD currency pair. The timeframe does not matter, at the same time, it is recommended to use it on a 15 minute chart.
The principle of the strategy is quite simple. It is necessary to determine the desired price range or the so-called “box” by traders. We choose the time from 04.00 to 07.00 GMT and find the maximum and minimum price values.
So there is a price range for the Asian trading session. This system 4-7 GMT Breakout Strategy is based on trading on the breakout of the levels of the selected range. For trading, it is necessary to set pending orders of the buy stop and sell stop types with the same volumes at a distance of up to 5 points above and, accordingly, below the range.
When placing orders, we take into account the spread. For this trading strategy, it is usually recommended to place two pending orders: two buy stop orders and two sell stop orders. On the first order, it sets the take profit at the level of 30 points, on the second at the level of 60 points, also when the take profit is triggered on the first order, it is better to move the second to breakeven.
Stops on orders must be placed above and below the “box” level. If the placed orders did not work, they must be deleted at 18.00 GMT, since after this time, as a rule, volatility falls, and the trades subside.