GBP/JPY Range: A Time-Based Breakout System
The “Range GBP/JPY” strategy is a “set-and-forget” system that capitalizes on the volatility of the GBP/JPY pair during the quiet period between the US session close and the Asian session open. It uses pending orders to catch the inevitable breakout.
Strategy Profile
Pair
GBP/JPY Only
Timeframe
M15
Type
Pending Orders
1. Identifying the Box
You need to identify a specific time window based on your terminal time (assuming GMT+2 server time):
- Start Time: 23:00 (End of US Session).
- End Time: 02:00 (Start of Asian Session).
- Action: Draw a box (rectangle) connecting the High and Low of price action between these two times.
Constraint: If the range (height) of this box is greater than 70 points, do not trade that day.
2. Placing Pending Orders
Once the box is formed at 02:00, place two pending orders:
- Buy Stop: 2 points above the High of the box.
- Sell Stop: 2 points below the Low of the box.
Risk Management
- Stop Loss: Placed at the opposite side of the breakout (the other pending order’s entry price).
- Take Profit: 2 times the Stop Loss distance (Risk:Reward 1:2).
- Management: Cancel the untriggered order once one is active. Close all trades before the next US session open if not hit.
Trade Smarter with FXRebate: Get cashback on every trade you execute.
