Hi Gang just to let you know I have been backtesting a mechanical trading method that a well respected professional trader gave me a long time ago. The fact it still makes money is proof this guy knew what he was talking about.
Anyway here is the system.
On a 1HR chart bracket the GBP/USD bar that closes at 8AM BST Put a buy order above that bar and a sell order below it.
Once in a trade the order not triggered becomes the stop. You can remove that stop order and replace it with an OCO with the other leg of OCO as your limit order, so you can then walk away from your PC.
STOP other side of trigger candle.
RULES
Bracket must not be more than 50 pips including spread. Better if it is 45 or even less. That way if you have a say 3 losses in a row the next 3 wins will have to 15 pips ahead.
NOTES. I have only backtested this strategy back 2 months. As that is as far as my metatrader indicator goes. If you know of an EA that allows me to test further please let me know. During the period between August 12 2009 and October 8 2009 my test returned 801 pips based on the above criteria using one lot.
If you would like to backtest further please do so and post your results. I have looked at multiple exits and from my experience they are not beneficial because your losses are 3 times as big but you wins are not.
Your thoughts appreciated
Anyway here is the system.
On a 1HR chart bracket the GBP/USD bar that closes at 8AM BST Put a buy order above that bar and a sell order below it.
Once in a trade the order not triggered becomes the stop. You can remove that stop order and replace it with an OCO with the other leg of OCO as your limit order, so you can then walk away from your PC.
STOP other side of trigger candle.
RULES
Bracket must not be more than 50 pips including spread. Better if it is 45 or even less. That way if you have a say 3 losses in a row the next 3 wins will have to 15 pips ahead.
NOTES. I have only backtested this strategy back 2 months. As that is as far as my metatrader indicator goes. If you know of an EA that allows me to test further please let me know. During the period between August 12 2009 and October 8 2009 my test returned 801 pips based on the above criteria using one lot.
If you would like to backtest further please do so and post your results. I have looked at multiple exits and from my experience they are not beneficial because your losses are 3 times as big but you wins are not.
Your thoughts appreciated
