49# London Breakout III

London Breakout Strategy

Janus Trader 2026 update 2026

London Breakout strategy is designed to capture high-probability breakout movements during the London session by combining a volatility-based breakout indicator with a directional trend filter. The goal is to trade only when momentum and market direction are aligned, filtering out low-quality setups and reducing false breakouts. It is particularly effective on volatile instruments where London session liquidity generates strong and sustained price movements.

Setup

Platform: MT4. Indicators: London Breakout Indicator and Trend Filter. Timeframe: M15 or M30. Instruments: volatile pairs such as GBPJPY, XAUUSD, NASDAQ, US30.

The core concept is to trade breakouts of the Asian session range during the London session, only when confirmed by the trend filter. The breakout defines the opportunity, while the trend filter defines the direction. Trades are taken only when both elements are in agreement, ensuring higher probability conditions.

Trading Rules

Trend filter rules are essential. Blue indicates a bullish trend, and allows only buy positions. Red indicates a bearish trend, and allows only sell positions. If the breakout signal does not match the trend filter direction, no trade is taken under any circumstances.

Buy

For a buy setup, the trend filter must be blue, price must break above the London breakout high, and a BO signal must appear. Entry can be executed at the close of the breakout candle, or on a minor pullback toward the breakout level.

Sell

For a sell setup, the trend filter must be red, price must break below the London breakout low, and a BO signal must appear. Entry can be executed at the close of the breakout candle, or on a pullback.

Take profit levels are defined by the indicator target zones. A conservative approach uses the first target for quick profits, while more advanced trade management allows partial closing at the first target, and holding remaining positions toward the second or third targets. Extended targets can be used in strong trend conditions.

Stop loss can be placed beyond the opposite side of the breakout range, or based on recent market structure. Alternatively, a fixed stop can be applied depending on the instrument and volatility conditions.

Additional confirmation can improve performance, including strong breakout candles with clear momentum, absence of nearby support or resistance, and avoidance of low volatility conditions.

Trading should be avoided when the trend filter is inconsistent or frequently changing color, when breakouts occur before the London session begins, during high impact news releases, or when price has already extended significantly beyond the breakout level.

The fundamental principle of this strategy is strict alignment between breakout direction and trend confirmation. Without this condition, no trade is executed. This discipline is what maintains consistency and reduces exposure to false signals.

London Breakout Strategy

London Breakout Strategy.rar

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GBP/USD EUR/USD Morning Breakout

Submit by Swiss FX 18/02/2013

GMT+0 (London time).

London Session.

Currency pairs: GBP/USD and EUR USD.

Time Frame:H1.

London Breakout III Metatrader Indicators:

ant-GUBreakout (start 00:00 end 7:00);

i-paramon Work Time (start 00:00 end 7:00);

Z-comfx

Entry:

Take the high and low price from between midnight and 07: 00 and then place two pendings orders. One at the high price + 15 pips and one at the low price - 15 pips. Set the pending orders to expire 12:00.

Stoploss:

Stop loss EUR/USD 18 pips, GBP/USD 20 pips

Takeprofit:

trailing stop of 10 pips or profit target 25 pips EUR/USD and 30 pips GBP/USD.