Since I did not got any response about this from you, let me clerify the idea.
I like to backtest an idea about trading the price retracements instead of the classic take profit and stop loss. I do not talk about fibinacci retracements or any other fancy technical analysis retracements. I just talk about price movements up and down.
So the trading logic is all about as soon as you grab a chart of the desired trading instrument, you enter a buy and sell. You specify a minimum pips value the price have moved up or down before you begin to look after closing the trade if it retraces the half way of what it have moved so far.
So if you decide 80 pips in the take profit and 160 pips for the sl as your minimum retracements and a waiting pips of 40 for the gbpusd, then this will mean that your buy trade when the price move up 80 pips or higher you do not close until it go down half the way, so it is 40 pips. And if it is go against you 160 pips as minimum then you begin to wait for it to retrace back up half the way so you can close the trade at 80 pips loss or more.
That is of course the same for the sell
Now you might ask what about the waiting pips. What its job then? Well, it is to insure either to lock your positions to minimize losses, or maximizing your profits.
That is because when your retracement close your trade in profit and it continues in same direction then you just wait these 40 pips before you reopen this direction. But if it continue in the opposit direction, so your other trade that is rmained open began to minimize its losses, then you wait your waiting pips multiplied with 2 before you reopen the direction.
So it is to insure always you have buy and sell, but give you gabs that you might benefit from to maximizing your profits.
Now I hope this one was better explained. I hope someone helpful that will put this for me in code. I will highly appreciate it.
Thanks in advance
I like to backtest an idea about trading the price retracements instead of the classic take profit and stop loss. I do not talk about fibinacci retracements or any other fancy technical analysis retracements. I just talk about price movements up and down.
So the trading logic is all about as soon as you grab a chart of the desired trading instrument, you enter a buy and sell. You specify a minimum pips value the price have moved up or down before you begin to look after closing the trade if it retraces the half way of what it have moved so far.
So if you decide 80 pips in the take profit and 160 pips for the sl as your minimum retracements and a waiting pips of 40 for the gbpusd, then this will mean that your buy trade when the price move up 80 pips or higher you do not close until it go down half the way, so it is 40 pips. And if it is go against you 160 pips as minimum then you begin to wait for it to retrace back up half the way so you can close the trade at 80 pips loss or more.
That is of course the same for the sell
Now you might ask what about the waiting pips. What its job then? Well, it is to insure either to lock your positions to minimize losses, or maximizing your profits.
That is because when your retracement close your trade in profit and it continues in same direction then you just wait these 40 pips before you reopen this direction. But if it continue in the opposit direction, so your other trade that is rmained open began to minimize its losses, then you wait your waiting pips multiplied with 2 before you reopen the direction.
So it is to insure always you have buy and sell, but give you gabs that you might benefit from to maximizing your profits.
Now I hope this one was better explained. I hope someone helpful that will put this for me in code. I will highly appreciate it.
Thanks in advance