Have you ever heard the saying: “The early bird catches the worm”?
This wisdom also applies to the world of forex trading—especially during the Asian trading session.
Although volatility in the Asian session is usually lower than in other major forex sessions, that doesn’t mean there are no opportunities. In fact, with the 20-Pip Asian Session Breakout Forex Strategy, you can consistently capture profits from price movements that occur when the market wakes up.
In this article, we’ll break down everything you need to know about this powerful strategy, including entry and exit rules, risk management tips, and practical advice to maximize profits.
What Is the 20-Pip Asian Session Breakout Forex Strategy?
The 20-Pip Asian Session Breakout Strategy is designed to capture breakouts from the Asian session’s price rangeas volatility rises during the London open.
While the actual trades are executed during the London trading hours, the analysis focuses on the price behavior during the Asian session range.
When the London–Asia overlap begins, market activity and volatility often increase sharply, creating the perfect conditions for a breakout.
This strategy is similar to the well-known London Breakout Strategy, but with one key difference:
👉 Instead of chasing big moves, the profit target is kept realistic—just 20 pips per trade.
By setting a small, achievable goal, traders can consistently benefit from the unique price structure of the Asian session.
Currency Pairs, Indicators & Timeframes
One of the biggest advantages of this strategy is its simplicity:
✅ No indicators required.
✅ Just price action and discipline.
Best currency pairs to trade with this strategy:
- GBP/USD
- GBP/JPY
- EUR/GBP
- EUR/JPY
Recommended timeframes:
- 15-minute
- 30-minute
- 1-hour
Why the Asian Session Matters
If you’ve traded forex for a while, you’ll know that the Asian session is usually calm.
Volume and volatility are lower, and price tends to consolidate within a narrow range.
But once London and Europe open, volatility and volume often spike, leading to breakouts of the Asian session range.
This is exactly what the 20-pip breakout strategy seeks to capture—jumping on the move right as the breakout occurs.
Trading Rules: The Step-by-Step Guide
Here are the clear rules for the 20-Pip Asian Breakout Strategy:
- Mark the Asian session high and low at least 1 hour before London opens.
- Focus on days when the Asian range is tight (narrow consolidation).
- Place a buy stop order 2–3 pips above the Asian session high.
- Place a sell stop order 2–3 pips below the Asian session low.
- For both orders:
- Set stop loss at the opposite side of the range.
- Set take profit at 20 pips.
- Once one order is triggered, cancel the other.
- Manage risk and let the breakout do the work.
Why Breakout Trading Works
Breakout trading is based on a simple principle:
📈 When price breaks a key support or resistance, it often continues in that direction.
Of course, false breakouts (fakeouts) do happen. That’s why risk management is crucial.
Traders can increase accuracy by watching for:
- Candlestick patterns
- Momentum confirmation
- Market sentiment around support/resistance
With proper stop losses and discipline, you can filter out bad trades and capture high-probability moves.
Characteristics of the Asian Session
The Asian forex session typically sees a daily range of only 40–50 pips.
It is known for:
- Lower volatility
- Lower liquidity
- Fewer major news releases
But many traders prefer this environment, as small movements can be more predictable and easier to trade.
Key Asian trading hours (Beijing time): 07:00 – 15:00
This is convenient for traders in Asia and Europe—no need to stay up all night to catch trades.
Most active pairs in Asian session:
- USD/JPY
- EUR/JPY
- AUD/USD
- NZD/USD
While liquidity may be lower, the overlap with the London open injects enough activity to create profitable breakout opportunities.
Risk Management: Protecting Your Profits
No strategy is complete without risk management. For the Asian Breakout Method:
- Always use stop losses to control risk.
- Move stop loss to breakeven once the trade is in profit.
- Stick to your 20-pip take profit target—don’t get greedy.
- Avoid trading during holidays or ultra-low liquidity hours.
Practical tips:
- Watch for economic news that may impact volatility.
- Regularly review your breakout range settings.
- Stay disciplined and avoid overtrading.
Conclusion
The 20-Pip Asian Session Breakout Forex Strategy is a simple yet powerful system for traders looking to profit from market volatility at the start of the London session.
By focusing on clear entry/exit rules, strict risk management, and discipline, you can achieve consistent results.
Remember Warren Buffett’s famous words:
“Risk comes from not knowing what you are doing.”
With this strategy, you’ll know exactly what you are doing—trading the breakout with confidence, discipline, and a clear profit target.
