Big ben breakout strategy​

Rule #3 Price needs to fade 
Immediately after the London session opens, we want to see the price fading the pre-open 
move. 

---

If the move starts fading, we know it was a false breakout
Smart money has used the pre-open move to trigger the stops below the range and now they 
reverse the tie and start buying. 
We want to see price pulling back into the range at the same speed as it went up. 
Let me explain… 
In simple words, the bullish momentum used to produce the false breakout needs to be equal to 
the bearish momentum used to fade the pre-open move. 
We enter our trade after the first 5-minutes have confirmed that the price is reversing. 
Once this trade setup is completed, you should see a price formation that takes the V-shaped 
form (or inverse V-shape). 
Let’s now explore what methods you can use to cash in the profits. 
Rule #4 Take Profit or Ride the Trend 
We can measure the size of the Asia trading range and project that from the top or bottom of 
our range to get our profit target. 

---

But, oftentimes this type of setup can lead to a trading day that can extend in the days to come. 
Let me prove it to you… 
See the Forex chart below: 
Now, in this case, it’s wise if you employ other trading tactics so you can actually profit from this 
trend. 
In this example, the better take profit strategy would be to use a trailing stop. 
You need to be ready to explore other trading methods to manage your trades. 
Now… 
Protecting the downside is as important as making money. 
Below, we’re going to reveal how to use time as your stop loss. 
Sounds interesting? 
So, let’s get straight into the matter. 
Rule #5 Use a Time Stop Instead of a Price Stop 

---

In order to fade the London breakout, you need to use unconventional trading methods. 
In this regard, for our stop loss trading strategy we’re going to use a time stop instead of a price 
stop. 
The first time I’ve ever heard about the time stop concept was while reading the Market Wizards 
book. 
Billionaire Hedge Fund manager Paul Tudor Jones one of the greatest traders of our times said: 
“When I trade, I don’t just use a price stop, I also use a time stop.” 
If you want to get a glimpse into the mindset of the most successful traders and hedge fund 
managers, please read: ​
Top Trading Quotes of All Time - Learn to Trade​
. 
So, how to apply the time stop to the London strategy? 
It’s very simple… 
If, in the first hour after the London open the price didn’t ​COMPLETELY​ reversed the pre-opening 
breakout, we exit the trade.
It’s simple as that, no further explanation is needed. 
Now, let’s explore more London breakout examples using our own trading twist. 
See below: 
More London Breakout Examples 
Now you’re probably wondering: 
Is this strategy the Holy Grail? 
Well, the short answer is NO. 

---

You can’t avoid losses, they are part of the game. No matter how much you twist a trading strategy, 
losses are the cost of doing business. 
We’re going to highlight a trade example, that will reveal that even when everything lines up 
perfectly, sometime the trade setup won’t work. 
First, we establish the London trading range and wait for a pre-open breakout. 
See the EUR/GBP trade example below: 
The pre-London open breakout happens 15-minutes before the open, which is still in line with our 
London daybreak strategy rules. 
However, what happens next is key. 
The London breakout trade signal was triggered, but after being already 1 hour into the London 
session, the trade has slightly moved against us. So, we close the trade at a small loss. 
Our London breakout rules are designed to minimize risk when we’re caught red-handed. 
Moving on… 

---

I know you’re going to enjoy the next London breakout example. 
On the USD/JPY chart below everything lines up for buying the pre-London breakout. 
The breakout happens before the London open and additionally, the move starts fading away at the 
same speed as it went down. 
Now, you can notice that after we enter, the USD/JPY pair went straight up. 
There is one more element to this London breakout trade that added extra confluence for our signal. 
As you might guess, we’re talking about the prevailing upward trend. 
Now, with this example, we’ve shown you that when you bring in your own edge into the mix, you 
can stack the odds even more in your favour. 
Moving on… 
Let’s have a look at what forex currency pairs to trade using the London breakout strategy. 

---

The Ideal currency Pairs for the London 
Breakout Strategy
If you really want to kill it with the London breakout trading strategy you need to know what currency 
pairs to trade. 
Not all currency pairs perform the same with the London breakout strategy. Some currency pairs 
tend to exhibit better trade signals that the other. As you may guess the best currency pairs to trade 
the London breakout system are the GBP crosses like GBP/USD, GBP/JPY and EUR/GBP.