Resources
25 Jan 2025
What Is a Session Breakout Strategy? How This MT4 Algorithm Executes It
A session breakout strategy aims to capture price expansion following consolidation around major market opens, most commonly the London and New York sessions. This algorithm formalises that idea into a structured, repeatable process.
Session Structure and Timing
Each weekday at 8:00am UTC, the algorithm:
identifies the high and low of the previous 8 hours
locks these levels as the daily breakout range
holds them constant until the next reset
This creates a clear reference point for potential expansion.
Controlled Trading Window
Trades are only considered:
between 8:00am and 10:30am UTC
within the first 30 bars after reset
Outside this window:
no new orders are created
existing orders may remain open
This prevents overtrading and late entries.
Breakout and Reversal Logic
A breakout occurs when price exceeds the locked range.
After a breakout, the system:
waits for a reversal candle
places a pending order beyond that candle
applies a short expiry to avoid stale fills
This avoids chasing impulsive moves.
Risk Management and Trade Limits
Each trade enforces:
dynamic stop loss calculation
a maximum stop loss cap
fixed or percentage-based risk
a defined risk-to-reward ratio
Daily limits include:
no simultaneous positions
a maximum of three trades per day
Why Automation Matters
Manually executing this logic is difficult because:
timing is precise
calculations are error-prone
discipline breaks down under pressure
Automation ensures consistent execution while keeping all strategic inputs configurable.
Summary
Session breakout strategies depend on structure, timing, and discipline. This algorithm exists to enforce those rules mechanically without requiring constant screen time.