Have just posted this trading system idea in the coding forum but thought it also worthwhile to start a new thread to see if there's any interest in it. It's a simple, well-known reversal with my own money management rules and TP, SL levels. For now I wish to only stick to these rules and discuss these rules. (I have examined other TP and SL ideas but they can wait for another time).
I've only looked at GJ for this. 15 minute timeframe.
This is a 2bar reversal scalp idea. We need to identify Bar 1 and Bar 2. For a buy, B1 must be a bearish bar. B2, the very next bar, must be a bullish bar AND must have the lowest low out of the last 5 bars. Also, its high MUST be lower than B1's (ie, not an outside bar). A buy entry would then be placed at the high of B1. If it hasn't triggered by the close of the 3rd consecutive bar after B2 then the order is cancelled. Risk 2%. Stop placed at the close of B1. Reverse above for shorts (ie B1 is a bullish bar, entry is placed at the low of B1 and we take the difference between B1 low and B1 close for our risk in pips value)
Risk in pips is difference between B1 low and B1 close. TP is therefore set at 1:1 now for a 2% gain or loss.
You can see in each example below that Bar 2 makes eaither the highest high or lowest low out of the last 5 bars and is a reversal to B1 AND doesn't go beyond B1. Of the examples where a trade was triggered, they did so within 3 bars of Bar 2.
This system will have losses but I'm anticipating there will be more winners...
Many thanks in advance if this is possible to code
I have not traded this live, it's just an idea for now. If it was proved beyond doubt that having a fixed TP of 5pips for a 2% gain regardless of the stop size was more profitable in the long run than the safer 2% 1:1, then I'd switch to that.
I've only looked at GJ for this. 15 minute timeframe.
This is a 2bar reversal scalp idea. We need to identify Bar 1 and Bar 2. For a buy, B1 must be a bearish bar. B2, the very next bar, must be a bullish bar AND must have the lowest low out of the last 5 bars. Also, its high MUST be lower than B1's (ie, not an outside bar). A buy entry would then be placed at the high of B1. If it hasn't triggered by the close of the 3rd consecutive bar after B2 then the order is cancelled. Risk 2%. Stop placed at the close of B1. Reverse above for shorts (ie B1 is a bullish bar, entry is placed at the low of B1 and we take the difference between B1 low and B1 close for our risk in pips value)
Risk in pips is difference between B1 low and B1 close. TP is therefore set at 1:1 now for a 2% gain or loss.
You can see in each example below that Bar 2 makes eaither the highest high or lowest low out of the last 5 bars and is a reversal to B1 AND doesn't go beyond B1. Of the examples where a trade was triggered, they did so within 3 bars of Bar 2.
This system will have losses but I'm anticipating there will be more winners...
Many thanks in advance if this is possible to code
I have not traded this live, it's just an idea for now. If it was proved beyond doubt that having a fixed TP of 5pips for a 2% gain regardless of the stop size was more profitable in the long run than the safer 2% 1:1, then I'd switch to that.
