I have been backtesting the following and there seems to be about 57-60% wins in EUR/USD M5 on MT4, if the spread is 1 pip:
Enter at random time.
Put a limit buy order at the high of the previous candle and a limit sell order at the low of the previous candle. SL=the high or low of the previous candle. TP=the same amount of pips as the SL + spread.
Problem:
if there are news Oanda(the only MM which I know offers 1pip spread at EUR/USD) widens the spread to 10 pips and as the news move the market, many of the TP's are on news candles, which can turn a winning trade in a losing one.
What do you think about this strategy?
Enter at random time.
Put a limit buy order at the high of the previous candle and a limit sell order at the low of the previous candle. SL=the high or low of the previous candle. TP=the same amount of pips as the SL + spread.
Problem:
if there are news Oanda(the only MM which I know offers 1pip spread at EUR/USD) widens the spread to 10 pips and as the news move the market, many of the TP's are on news candles, which can turn a winning trade in a losing one.
What do you think about this strategy?