DETAILS
The London system is an intraday type thought to be applied on 15 minutes bars . It is based on popular "pívot points", so used by numerous traders. Besides it incorporates hour and tendency filters.

The system is basically based on the calculation of pivots points those are intraday support and resistance levels calculated using the maximum, minimum and closes of the previous ession. Although there's diverse calculation variations of this system it's usual to calculate 3 support and resistance levels. The basic point is that a rupture of a resistance level must be followed by a rise movement as well as the rupture of an intraday support is Sen as the beginning of a downward movement .

The levels are changed depending on the market volatility , trying to avoid what americans traders call "whipsaws". They are abrupt impulses that can cause false signals that mislead to the system to operate This system has neither lost money in any year since the markets of futures ESX in 1998 was created, nor lost through the 7 last years of DAX futures market. it's easy to verify its stability through a walk-forward test and seeing a "tightening test" of his parameters. If you download the system an try different sets of parameters choosen by chance, you'll see how London system maintains his perfomance. In the worst case its smallest loss it's small. We stressed that the philosophy of this system is to lookfor results 12 months sacrificing benefits in order to get more stability.