The London session open (7:00 GMT) consistently produces the largest moves of the trading day. The London Breakout strategy captures this initial momentum by trading the break of the Asian session range.
Why It Works
During the Asian session (00:00-07:00 GMT), price consolidates in a tight range as major banks are closed. When London opens, institutional order flow creates a directional breakout from this range 70-80% of the time.
Setup Rules
- Identify the Asian session high and low (00:00 to 07:00 GMT)
- Place a buy stop 5 pips above the Asian high
- Place a sell stop 5 pips below the Asian low
- Wait for the London open (07:00-08:00 GMT) to trigger one order
- Cancel the untriggered order once one is activated
Risk Management
| Parameter | Value |
|---|---|
| Stop Loss | Opposite end of Asian range |
| Take Profit 1 | 1x range width |
| Take Profit 2 | 1.5x range width |
| Max range | Skip if Asian range > 60 pips |
| Min range | Skip if Asian range < 20 pips |
Best Pairs
- GBP/USD — highest hit rate (London's home currency)
- EUR/USD — most liquid, tight spreads
- EUR/GBP — European cross, clean breakouts
When to Avoid
- Days with major news releases before 09:00 GMT (NFP Fridays, etc.)
- Monday mornings (gap risk)
- Unusually wide Asian ranges (> 60 pips)
Consistency is the edge. This strategy won't win every day, but over 20+ trades per month, the expectancy is firmly positive with proper risk management.
Backtest this on GBP/USD for the past 6 months. You'll find a win rate around 65% with an average RR of 1:1.3 — giving an expectancy of approximately 0.3R per trade.