I have been playing around with a hedging strategy and am looking for input to see if it can be developed.
The rules are as follows:
On the master candle (fancy term for the candle to start from) if it is facing north, buy 2 lots and sell 1 lot.
If the next candle closes north, and for every subsequent northerly candle, add 1 lot to the buy position.
If a candle closes in the opposite direction, sell 2 and buy 1. Then for every subsequent southerly candle sell 1 additional lot on the close.
No stops, and take the money when its there.
I am sure you get the idea....
I have attached a paper backtest i did using the choppiest pair (gbp/chf 3hr tf from oanda), but i think the concept merits an ea if someone can program it so that it can be tested properly.
You can use the excel file to simulate data from other pairs.
If theres a mathalete reading this, pls check my formulas to make sure they are correct.
Thanks.
The rules are as follows:
On the master candle (fancy term for the candle to start from) if it is facing north, buy 2 lots and sell 1 lot.
If the next candle closes north, and for every subsequent northerly candle, add 1 lot to the buy position.
If a candle closes in the opposite direction, sell 2 and buy 1. Then for every subsequent southerly candle sell 1 additional lot on the close.
No stops, and take the money when its there.
I am sure you get the idea....
I have attached a paper backtest i did using the choppiest pair (gbp/chf 3hr tf from oanda), but i think the concept merits an ea if someone can program it so that it can be tested properly.
You can use the excel file to simulate data from other pairs.
If theres a mathalete reading this, pls check my formulas to make sure they are correct.
Thanks.
Attached File(s)
buysellv3.xls
87 KB
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bull in a china shop