First, you need to determine the price range for Breakout trading. The first candle of each week will be the candle that we need to pay attention to.

You use the rectangle tool in MT4 to draw a box that connects the highest price of the candle to the lowest price of that candle. The opening price of the week was also the start of the Australian session. As shown below:

Box forming time:

  • GMT- 21:00 to 01:00
  • EDT - 17:00 to 21:00

You convert the time zone to the time zone of your trading software to calculate the opening and closing hours of the first candle of the week.

In this method, the author suggests the FXDD trading platform trade this method would be better. If not, you can rely on the time zone conversion to know when the H4 candle starts the week starts at what time.

Now we get into trading principles.

Trading principles:

We add a counter of 10-20 pips to each top of the week's high and low. As shown below:

  • Execute a buy order when the price breaks the top edge of the box (includes a counter and spread)
  • Execute a sell order when the price breaks the lower edge of the box (includes a counter and spread)

Stop loss

Stop the hole on the other side of the box.

Take profit
  • TP1 - Equivalent to the size of the box
  • TP2 - Double the size of the box
  • TP3 - Triple box size
  • TP4 - Quadruple box sizes
This system works effectively on currency pairs related to JPY such as:
  • GBP / JPY
  • EUR / JPY
  • AUD / JPY
  • CHF / JPY
  • CAD / JPY
But this strategy works best on GBP / JPY.

Note also, to get a good profit you should take the profit partly by part, not just take profit at TP1.

After the price moves to TP1, you take partial profit (or possibly not) and then move your stop loss to breakeven.

Advantages of the trading strategy

This strategy has advantages such as:
  • Spend less time trading, about 30 to 1 hour per week. You will check your position every once in a while, but it doesn't take up much time.
  • Without using complicated indicators or trading techniques, the principle is also quite simple.
  • Very good risk: reward ratio
  • Easily backtest past signals.
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