Hey All!
I’ve been messing about with a trading system that has shown some good results on the 1 HR chart. I’ve manually backtested more than 100+ trades and I’m getting exhausted.
For this system to makes sense it needs to be automated as it requires constant screening. Below are rules and guidelines that have shown the best result thus far in my opinion.
indicators used:
1- 20 SIMPLE moving average
2- awesome Oscillator default
3- Parabolic Sar Default
Buy Order:
Candle 1 - Bearish Candle
Candle 2 - Bullish Candle equal to or engulfs previous candle
Candle 3 - Bullish Candle that crosses over 20 Moving Average.
Entry When Parabolic Sar appears on Candle 3 Close
And awesome indicator turns
Open 2 trades with RR 1:1 & RR 1:2
Sell Order:
vice versa
Stop Loss:
Place stop loss at open of candle 2 or 1-2 pips above candle 3.
Still currently experimenting with this and would get a better idea if we had an EA to show which SL is more profitable.
Exit:
After RR 1:1 trade is hit, move trade to break even for RR 1:2 trade.
IMPORTANT
- To avoid multiple false signals, Candle 1 & 2 should open either above or below the Moving average and should not be touching the moving average (Wicks are okay)
If anybody has any coding knowledge, please feel free to help me out with the above as it would much easier to optimise the rules based on profitability.
P.s I was also backtesting a scenario where we remove RR 1:1 altogether and have only one trade running (RR 1:2) and this showed great promise as well.
Will upload trade examples in the next few posts
I’ve been messing about with a trading system that has shown some good results on the 1 HR chart. I’ve manually backtested more than 100+ trades and I’m getting exhausted.
For this system to makes sense it needs to be automated as it requires constant screening. Below are rules and guidelines that have shown the best result thus far in my opinion.
indicators used:
1- 20 SIMPLE moving average
2- awesome Oscillator default
3- Parabolic Sar Default
Buy Order:
Candle 1 - Bearish Candle
Candle 2 - Bullish Candle equal to or engulfs previous candle
Candle 3 - Bullish Candle that crosses over 20 Moving Average.
Entry When Parabolic Sar appears on Candle 3 Close
And awesome indicator turns
Open 2 trades with RR 1:1 & RR 1:2
Sell Order:
vice versa
Stop Loss:
Place stop loss at open of candle 2 or 1-2 pips above candle 3.
Still currently experimenting with this and would get a better idea if we had an EA to show which SL is more profitable.
Exit:
After RR 1:1 trade is hit, move trade to break even for RR 1:2 trade.
IMPORTANT
- To avoid multiple false signals, Candle 1 & 2 should open either above or below the Moving average and should not be touching the moving average (Wicks are okay)
If anybody has any coding knowledge, please feel free to help me out with the above as it would much easier to optimise the rules based on profitability.
P.s I was also backtesting a scenario where we remove RR 1:1 altogether and have only one trade running (RR 1:2) and this showed great promise as well.
Will upload trade examples in the next few posts
