Tokyo Daybreak Forex Trading Strategy For MT4
The Tokyo Daybreak Forex Trading Strategy For MT4 is used by many institutional traders in Japan. This strategy is specially designed to trade only the USDJPY pairs. So, if you wish to rely on this model, for speculation of other currency pairs, you are not going to get any result.
The concept of this model is to use the quiet period of the market before the Tokyo market opens. Since the New York and Tokyo market is closed, we won’t see any noticeable volatility in the USDJPY pairs. As soon as the market goes like in the Asian session, we see plenty of actions in USDJPY and it results in a breakout. And the system uses the breakout of the consolidated price.
To use this model, you need to prepare the chart for three hours priors to the opening of the Tokyo session. Find the upper and lower range of the market. After that place, the buy stops order 7 pips above the resistance and sell stop order 7 pips below the support. After the market opens, the volatility increase and results in a quick breakout. If the buy order gets triggered, ignore the sell trade. On the contrary, ignore the buy order when the sell trade gets triggered. At times, you might see nothing has happened. Canceled both trades after 5 minutes. So, the first 5 minutes is the window of trade execution.
The Take profit is determined in an advanced way. The stops will be trailed +15 pips for every 30 pips move. Let’s say, the long order is triggered. When the market goes +30 pips, move the SL to positive 8 pips or trail the stop by 15 pips. It might be confusing but read a few articles on trailing stops to know this feature.
The best feature of this daybreak model is higher gains. At times, the RR ratio for the trade exceeds 1:6+. But this should never encourage to take a bigger risk. You may have some losing days and its nothing but a part of day trading. Prepare for the next day but don’t get emotional with the losses.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
