Discussing the article: "Automating Trading Strategies in MQL5 (Part 9): Building an Expert Advisor for the Asian Breakout Strategy"
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Check out the new article: Automating Trading Strategies in MQL5 (Part 9): Building an Expert Advisor for the Asian Breakout Strategy.
In this article, we build an Expert Advisor in MQL5 for the Asian Breakout Strategy by calculating the session's high and low and applying trend filtering with a moving average. We implement dynamic object styling, user-defined time inputs, and robust risk management. Finally, we demonstrate backtesting and optimization techniques to refine the program.
To create the program, we will design an approach that leverages the key price range formed during the Asian trading session. The first step will be to define the session box by capturing the highest high and the lowest low within a specific time window—typically between 23:00 and 03:00 Greenwich Mean Time (GMT). However, these times are fully customizable to suit your needs. This defined range represents the consolidation area from which we expect a breakout.
Next, we will set breakout levels at the boundaries of this range. We will place a pending buy-stop order slightly above the top of the box if market conditions confirm a bullish trend—using a moving average (such as a 50-period MA) for trend confirmation. Conversely, if the trend is bearish, we will position a sell-stop order just below the bottom of the box. This dual setup will ensure that our Expert Advisor is ready to capture significant moves in either direction as soon as the price breaks out.
Risk management is a critical component of our strategy. We will integrate stop-loss orders just outside the box boundaries to protect against false breakouts or reversals, while take-profit levels will be determined based on a predefined risk-to-reward ratio. Additionally, we will implement a time-based exit strategy that automatically closes any open trades if they remain active past a designated exit time, such as 13:00 GMT. Overall, our strategy combines precise session-based range detection, trend filtering, and robust risk management to build an Expert Advisor capable of capturing significant breakout moves in the market. In a nutshell, here is a visualization of the whole strategy that we want to implement.
Author: Allan Munene Mutiiria