Forex Session Open Trade

Entry Logic

• Entry triggers on a breakout of the first 15 minutes of a major session (London or New York).
• Confirmation requires a follow-up candle in the same direction.
• Timeframe is the 5-minute chart.
• Location is a breakout from the opening range of a major session.
• Market condition is high volatility at the start of a session.

Exit Logic

• Profit target is 30 pips.
• No scaling out.
• Trailing stop is a 15-pip trailing stop.
• Exit on signal failure if the price closes back inside the opening range.
• Exit on an opposite signal from a strong reversal.
• Exit on time expiration after 2 hours.
• Exit on momentum loss if the price stalls for more than 30 minutes.

Stop Loss Structure

• Hard stop is placed on the opposite side of the opening range.
• No soft stop is used.
• Maximum dollar loss is 0.5% of account equity.
• Maximum percent loss is 0.5% of account equity.
• Structural stop is placed on the opposite side of the opening range.

Risk Management Framework

• Risk per trade is 0.25% of the account.
• Maximum daily loss limit is 1% of the account.
• Maximum weekly loss limit is 3% of the account.
• Maximum drawdown allowed is 10%.
• Risk-reward ratio requirement is a minimum of 1:1.5.

Position Sizing Model

• Sizing is based on a fixed fractional model (0.25% of account per trade).
• No volatility adjustment is used.
• Conviction sizing is not used.
• No scaling in.
• No scaling out.

Trade Filtering

• Avoid trading if the opening range is too wide (more than 30 pips).
• Requires a clear breakout of the opening range.
• Instrument can be any major forex pair.
• Trade only at the beginning of the London or New York sessions.
• Avoid trading during major news releases.

Context Framework

• Trend direction is determined by the direction of the breakout.
• The focus is on the initial momentum of the session.
• Moving averages are not used.
• Location is a breakout from the opening range.
• Higher timeframe (1-hour) can be used to identify the overall trend.

Trade Management Rules

• This is a fast-paced, intraday strategy.
• Be prepared to act quickly.
• Take profits at the target.
• Do not add to the position.

Time Rules

• Optimal trading window is the first hour of the London or New York sessions.
• Avoid trading after the first 2 hours of the session.
• The opening of a major session is often the most volatile time of the day.

Setup Classification

• A+ setup: Breakout of a tight opening range in the direction of the daily trend.
• A setup: Breakout of a moderate opening range.
• B setup: Breakout of a wide opening range.
• C setup: Fading the breakout.

Market Selection Criteria

• Instrument can be any major forex pair.
• Requires high volatility and liquidity.
• Volatility is the key to this strategy.

Statistical Edge Metrics

• Expected win rate is 50%.
• Average win is 1.5R.
• Average loss is 1R.
• Profit factor is 1.5.
• Expectancy per trade is +0.25R.

Failure Conditions

• Strategy fails when the breakout is a false signal.
• Avoid trading in low-volatility markets.

Psychological Rules

• Be decisive and act quickly.
• Do not hesitate to enter or exit a trade.

Advanced Components

• No advanced filters are used.
• The focus is on the time-of-day and the opening range.
• No multi-timeframe alignment is needed.

Location

• Strongest at the beginning of the London and New York sessions.
• Weakest during the Asian session.
• The time of day is the most important factor.