Discussing the article: "Creating an MQL5 Expert Advisor Based on the Daily Range Breakout Strategy"
It looks like a well-known "Morning Flat Breakout", not a "Daily Range Breakout" (which is different), so the title is misleading.
Also I did not see a code for time-zone handling, because depending from your server GMT offset, the "morning flat" which defines the range for breakout, should be tracked starting not from a midnight 00:00 necessarily, but with the offset.
It looks like a well-known "Morning Flat Breakout", not a "Daily Range Breakout" (which is different), so the title is misleading.
Also I did not see a code for time-zone handling, because depending from your server GMT offset, the "morning flat" which defines the range for breakout, should be tracked starting not from a midnight 00:00 necessarily, but with the offset.
Thanks for the reply. That depends on the strategy one uses. In our case, it is the Daily Range Breakout, essentially running from midnight to 6 AM, which can ofcourse be adjusted. Thanks.
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Check out the new article: Creating an MQL5 Expert Advisor Based on the Daily Range Breakout Strategy.
In this article, we create an MQL5 Expert Advisor based on the Daily Range Breakout strategy. We cover the strategy’s key concepts, design the EA blueprint, and implement the breakout logic in MQL5. In the end, we explore techniques for backtesting and optimizing the EA to maximize its effectiveness.
The Daily Range Breakout strategy is a well-known trading method among Forex traders. It allows them to take advantage of vast price movements that happen after the market has formed a daily range. The strategy uses the market's price action to figure out where important support and resistance levels are. Once these traders know where these levels are, they trade breakouts of them, looking for the probable big moves that usually happen after the market breaks one of these levels.
This strategy centers on the daily range, which is established as the difference between the highest and lowest prices of a currency pair within a trading day. The breakout points are inferred from the range of the previous trading day. A breakout occurs when the price moves above an established resistance level or below a support level. In hindsight, the last day's prices seem to lay down very well-defined levels to use as potential breakout points. When the price breaks up through the resistance level, a long position is taken. When the price breaks down through the support level, a short position is taken. Here is an illustration of what we mean.
Author: Allan Munene Mutiiria