Asia Regime Delta: Session-Based Trading Strategy for London Breakouts

The transition from Asian to London trading sessions represents one of the most significant liquidity handoffs in global forex markets. Asia Regime Delta systematically captures this regime change by establishing Asian session swing points as critical reference levels, then trading Break of Structure signals during the London session for high-probability reversal opportunities.

What is Asia Regime Delta?

Asia Regime Delta is a sophisticated session-based trading strategy that recognizes the predictive power of Asian trading session price action. The Asian session—encompassing Tokyo, Hong Kong, Singapore, and Sydney—establishes critical price levels and directional bias that frequently influence market behavior throughout European and American trading hours.

The strategy employs a multi-layered analytical approach:

1. Session Identification: Precise tracking of Asian (22:00-03:00 NY) and London (03:00-08:00 NY) session boundaries
2. Swing Point Tracking: Recording Asian session high and low as breakout reference levels
3. Breakout Detection: Identifying when London price action violates Asian range
4. Market Structure Analysis: Confirming breakout validity through HH-HL or LL-LH patterns
5. Break of Structure Entry: Triggering trades when established structure is violated

Understanding Session Dynamics

Asian Session Characteristics

The Asian session typically experiences:

• Lower volatility compared to London/NY
• More constrained price action
• Establishment of overnight balance zones

These characteristics make Asian swing points particularly significant when subsequently violated during higher-volume London trading.

London Session Expansion

When London markets open, liquidity and volatility expand dramatically. Breakouts beyond Asian session levels during this period indicate:

• Above Asian high: Institutional buying, bullish regime
• Below Asian low: Institutional selling, bearish regime

Market Structure Analysis

The strategy doesn't enter immediately on breakouts. Instead, it waits for market structure confirmation through pattern recognition.

Bullish Breakout Structure

After price breaks above the Asian high:

• Track Higher Highs (HH) and Higher Lows (HL)
• Require alternating pattern: HH → HL → HH → HL
• Structure confirms genuine upward momentum

Bearish Breakout Structure

After price breaks below the Asian low:

• Track Lower Lows (LL) and Lower Highs (LH)
• Require alternating pattern: LL → LH → LL → LH
• Structure confirms genuine downward momentum

Structure Identification Rules

The strategy implements rigorous pattern recognition:

• Two-candle patterns: Directional candle followed by counter-directional candle
• Consolidation filters: Prevent structure identification during tight ranges
• Minimum bar separation: Ensure adequate time between structure points

Break of Structure Entry Logic

The Break of Structure (BoS) serves as the primary trade entry trigger, identifying potential trend exhaustion and reversal opportunities.

Bearish BoS (in Bullish Breakouts)

• Trigger: Price closes below the most recent Higher Low
• Interpretation: Bullish momentum weakening
• Action: Short entry targeting reversal toward Asian low
• Stop Loss: London session high or ATR-based

Bullish BoS (in Bearish Breakouts)

• Trigger: Price closes above the most recent Lower High
• Interpretation: Bearish momentum exhausting
• Action: Long entry targeting reversal toward Asian high
• Stop Loss: London session low or ATR-based

Why BoS Entries Work

BoS-based entries offer superior risk-reward compared to simple breakout entries:

• Enter at inflection points where structure is shifting
• Clear invalidation levels for stop placement
• Capitalize on potential reversals after momentum exhaustion
• Avoid false breakout exposure

Risk Management Framework

Stop Loss Options

ATR-Based Stops:

• ATR Length: 14 periods (default)
• ATR Multiplier: 2.0 (default)
• Adapts to current volatility conditions

Structural Stops:

• Long positions: Stop at London session low
• Short positions: Stop at London session high
• Clear invalidation of trade thesis

Risk-Reward Ratio

• Default: 2.0 (profit target = 2× stop distance)
• Adjustable: 0.5 to 10.0
• Ensures winning trades capture multiples of risked amount

Position Sizing

• Fixed Contracts: Simple, consistent sizing
• USD Risk: Consistent dollar risk per trade regardless of stop distance

Session Controls

• Force Close: All positions closed at London session end
• Entry Cutoff: No new trades within 60 minutes of session end
• One Trade Limit: Single entry per London session

Visualization Features

The strategy provides comprehensive visual feedback:

Session Boxes

• Asian session: Red semi-transparent boxes showing session range
• London session: Blue semi-transparent boxes marking trading period

Swing Point Lines

• Horizontal lines extending from Asian high/low into London session
• Terminated at breakout bar when violated
• Labels display exact price levels

Market Structure Labels

• HH, HL, LL, LH markers at identified structure points
• Color-coded: Green for bullish, Red for bearish
• Visual trail of structure development

Break of Structure Visualization

• Dotted lines connecting broken structure level to entry bar
• "BoS" labels at midpoint of connecting lines
• Clear indication of entry trigger points

Trade Visualization

• Blue boxes: Profit zones from entry to target
• Red boxes: Stop loss zones from entry to stop
• Extend to actual exit bar when position closes

Profabighi Capital Metrics Integration

Real-time performance tracking includes:

• Equity curves: Strategy equity, open profit, gross/net profit
• Performance tables: Win rate, profit factor, drawdown, trade count
• Display options: Full, Simple, or None

Settings Overview

Who Should Use This Strategy?

Asia Regime Delta is ideal for:

• Forex traders focusing on major pairs (EUR/USD, GBP/USD, USD/JPY)
• Session traders seeking systematic Asian-London approaches
• Market structure enthusiasts who understand HH/HL/LL/LH concepts
• Institutional flow followers looking for regime change signals
• Disciplined traders who value defined risk parameters

Key Takeaways

1. Session relationships provide edge: Asian session ranges establish critical levels that influence London behavior, creating predictable trading opportunities.

2. Structure confirmation filters false breakouts: Waiting for HH-HL or LL-LH patterns before entry significantly reduces false breakout exposure.

3. BoS entries offer superior risk-reward: Entering at structure violation points provides clear invalidation levels and captures potential reversals.

4. Session-bound exposure manages risk: Automatic closure at London session end eliminates overnight gap risk and maintains strategy focus.

5. Visualization educates: Session boxes, structure labels, and BoS markers train traders to read market dynamics systematically.

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Asia Regime Delta is available on TradingView as a protected strategy. Visit the [TradingView page](https://www.tradingview.com/script/bGYvTavu-Asia-Regime-Delta-PROFABIGHI-CAPITAL/) to add it to your charts.