London Breakout Strategy Updated Results

Before I start this blog post, I’d just like to wish everyone well during this current Coronavirus pandemic.

 

There is nothing I can add to what has already been said and to what you have probably already read.

 

It is impossible to not be affected in some way. Everyone is making sacrifices in this difficult time.

 

Please stay safe and look after each other where possible.

 

My thoughts are often with the frontline workers… they all deserve a medal. God bless you all.

 

Trading Results from the London Breakout Strategy.

 

In my last post I shared with you some results I had compiled from testing the popular Morning Breakout Strategy or you may prefer the London breakout strategy as it is often called.

 

Over the last couple of months, I have kept the test going and have some more results to share.

 

February 2020 produced more profits.

 

There where a total of 10 trades with 3 losses.

 

This gave us a total of 372 points profit for the month and a strike rate of 70%

 

03-Feb-20 58 116
04-Feb-20
05-Feb-20 50 50
06-Feb-20 33 66
07-Feb-20
08-Feb-20
09-Feb-20
10-Feb-20 42 84
11-Feb-20
12-Feb-20
13-Feb-20 43 53
14-Feb-20
15-Feb-20
16-Feb-20
17-Feb-20 28 56
18-Feb-20
19-Feb-20
20-Feb-20 35 35
21-Feb-20 37 41
22-Feb-20
23-Feb-20
24-Feb-20
25-Feb-20 54 54
26-Feb-20
27-Feb-20 47 95
28-Feb-20
29-Feb-20
Total Points Won 511 139
Total Profit 372

 

 

Again this is a very respectable result and profit.

 

March 2020

 

March was a difficult month to find trades. The Coronavirus has caused huge volatility in the markets.

 

The GBP/USD has been seeing moves of 300+ points a day. This often meant that the breakout range was over our maximum points range of 60.

 

We did however have 3 trades that all won. This gave us a total of 294 points profit for the month and obviously 100% strike rate.

 

London Breakout Strategy Results March

 

 

 

The blue lines are the winning trades. The yellow lines are the no trades where the range was above 60 points.

London Breakout Strategy Full Results

 

As you can see, the results speak for themselves and over the 3-month test of the strategy we have managed to make a total of 1050 points profit.

 

That is a great result and an average of 35% added to our bank each month.

 

If results continue then you could build a nice size trading bank over the years with very little risk. Theoretically, you could double your bank roughly every 3 months.

 

Here’s a Compound Interest Calculator that you can download and use to give you an idea of what is possible.

 

Of course, these results are no indication of what you will gain in the future. Anything can happen and you will encounter losing months.

 

Losing Months

 

I actually had a look back to find a losing month, which I did in April 2019.

 

You can see the screenshot here. There were 18 trades with 3 winning and 15 losing giving a strike rate of just over 16%

 

I didn’t do the exact maths but if you had an average loss of 40 points and a win of 80 points then you’d have had a total loss for the month of 360 points.

 

You must realise that you can’t and wont win them all.

London Breakout Strategy losing streak 2019

 

The blue lines are the winning trades. The red lines are the losing trades and the yellow lines are the no trades where the range was above 60 points.

 

I am working on a strategy to trade alongside the London Breakout Strategy. This will help limit losses and increase profit over time and keep you trading the trend and larger moves. It’s looking very promising at present. I will keep you posted.

 

Stay Safe

 

Once again, please try and stay safe during the current Coronavirus situation. None of us are truly alone, we are all in this together and soon enough we will come out the other side.