4H BOX Strategy

This strategy got its name since trading is carried out on the breakout of the first closed 4H candle after the opening of a new week.

Important note: different brokers form candles in different ways, so it's better to use time to build a box. In summer it is from 21.00 GMT Sunday to 01.00 GMT Monday. That is, hour candles open at 21.00, 22.00, 23.00 and 0.00 GMT are involved in calculating the levels of the box. A candle open at 01.00 GMT does not participate in the calculation of the parameters of the box.

In winter, the interval of the box range is from 22.00 to 01.00 GMT, that is, when calculating the parameters of the box, only the first three hourly candles of the week are involved.

Entering the long. When the upper border of the box is broken, we enter long. SL we set slightly below the lower border of the box.

Entering the short. We go short when the lower border of the box is broken, SL we set slightly above the upper border of the box.

Calculation of the TP level. In the original strategy description, TP is defined as follows:

TP1 = 1 x box height

TP2 = 2 x box height

TP3 = 3 x box height etc.

However, in the course of many years of trading, the following pattern was revealed: the smaller the height of the box, the better the strategy works and the price movement is more pronounced.

Therefore, we can give the following recommendation for determining the TP level: as soon as your profit is 150-200 pips, the trade should be closed. The best option is one trade per week.

Advantages of the 4H BOX strategy:

the strategy is very simple

no indicators required

the possibility of making a profit significantly increases the applicable risks