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FXSnipers Quantitative Desk Series

London Judas Swing Reversal Strategy

Forex • GBPUSD, EURUSD, XAUUSD • M5 • Liquidity Sweep
London Open
07:00 - 09:30 UTC
Complexity: Advanced
Max Risk 0.5% - 1.0% maximum equity risk per trade.
Target R:R Scaled model: 50% partial at the opposite side of the Asian range, remainder targeted at 1:3 R:R.
Break-Even Trigger Move stop loss to breakeven immediately after the first partial profit target is achieved.
Automation Rule-dependent

Pre-Trade Verification Checklist

Asian Range Validation: Confirm the 00:00-06:00 UTC range is formed and its size is within 0.4x to 1.2x of the 20-day average.
Liquidity Sweep Detection: Wait for the 07:00-09:30 UTC window and verify a sweep beyond the range by at least 0.3x H1 ATR(14).
Market Structure Shift (MSS): Identify an M5 candle close back inside the range that breaks the immediate internal swing high/low.
Order Execution & Risk Setup: Enter market order with Stop Loss placed past the sweep extreme and limits configured for 50% partial at the opposite range boundary.
Active Management: Move stop loss to breakeven upon reaching the first target and track the runner to 1:3 R:R.

Entry Execution Criteria

  1. Mark the high and low of the Asian session box from 00:00 to 06:00 UTC, and verify that the range height is between 0.4x and 1.2x of its 20-day average.
  2. Between 07:00 and 09:30 UTC, wait for price to sweep either above or below the Asian range extreme by a minimum distance of 0.3x the H1 ATR(14).
  3. On the M5 timeframe, wait for a market structure shift (MSS) confirmed by a candle close back inside the range that simultaneously breaks the most recent M5 swing high (for buys) or swing low (for sells).

Take-Profit & Target Exit

  • Take 50% partial profit when price reaches the opposite boundary of the Asian range.
  • Manage the remaining position by moving the stop loss to breakeven upon hitting the first target, scaling out further or letting it run toward a 1:3 overall risk-to-reward ratio.

Invalidation & Emergency Exit

  • Void the setup if price fails to break back inside the Asian range by 09:30 UTC.
  • Cancel the trade if the Asian range size falls outside the 0.4x to 1.2x 20-day average constraint.
Stop-Loss Positioning

Placed strictly beyond the extreme wick of the sweep high or low plus a buffer for the broker spread.

Documented & Formatted by FXSnipers Strategy Lab • fxsnipers.com/strategy-lab/london-judas-swing-reversal-strategy
Desk Cheat Sheet Specification v1.0