London Extension EA

London Extension EA

Overview

London Extension EA trades the extension of the Asian range into the London session. It measures the overnight range, waits for London to break it, and then enters on the retest of the broken level rather than on the break itself. Positions are intraday and closed at a fixed hour.

How it works

* The Asian range is measured between two configurable server hours during the quiet part of the session.

* Range width filters reject nights that were too quiet or too wide to produce a usable level.

* During a configurable London window, a break of the range boundary marks the level to trade.

* The default entry is a rebound: the EA waits for price to come back to the broken level and to reject it, which trades the retest instead of the initial spike. A fallback entry mode is available when the retest does not occur.

* The stop loss is placed behind the structure that produced the entry; the take profit is a fixed reward-to-risk multiple.

* One trade per day by default, with an optional partial exit at a configurable R multiple and an optional move to break-even afterwards.

* Any remaining position is force-closed at a configurable server hour.

* Trade direction can be restricted to longs, to shorts, or left bidirectional.

Risk management

Percentage of equity risked per trade, computed from the distance to the stop.

Recommended use

Designed and tested on EURUSD M5, and suitable for major Forex pairs. A dedicated working timeframe fixes the bars on which the range and the signals are measured, independently of the chart timeframe, so the expert keeps its behaviour even when attached to a chart of a different timeframe. All session hours are server hours; a single time shift parameter adjusts them all at once, and the detected server to GMT offset is written to the journal at initialisation to guide you. No hardcoded symbol. Hedging or netting accounts, any broker, no DLL.

Backtest results

MetaTrader 5 Strategy Tester, 100% real tick data, January 2016 to June 2026, EURUSD M5, initial deposit 10 000 USD, leverage 1:100: net profit 4 899 USD, profit factor 1.11, maximum balance drawdown 23.05%, 818 trades, 48.8% of trades profitable, average win 125 USD against average loss 107 USD.

A profit factor of 1.11 with a 23% drawdown is a demanding profile and it is published as measured, without selection of a favourable sub-period.

Disclaimer

Trading Forex and leveraged products carries a high risk of capital loss and is not suitable for all investors. Backtest results are historical simulations; they do not reflect real transactions and do not guarantee future performance. Test on a demo account before any live use. This product does not constitute investment advice.