EUR/USD Trading Price Action System

Here is a weekly system I wrote for trading price action http://www.myforexdot.org.uk/trading...n-asystem.html it works particularly well on the EUR/USD currency pair.


The results with a four week time-based exit are -

Number of trades: 55
Number of winning trades: 32
Number of losing trades: 23
Percentage of winning trades: 58.2%
Number of pips won: 11,086.1
Number of pips lost: 5,547.2
Average win: 346.4
Average loss: 241.2
Win to loss ratio (pips): 2.00 to 1


Or if not used with a time-based exit the results are -

Number of trades: 19
Number of winning trades: 10
Number of losing trades: 9
Percentage of winning trades: 52.6%
Number of pips won: 11,299
Number of pips lost: 4,262.1
Average win: 1,129.9
Average loss: 473.6
Win to loss ratio (pips): 2.65 to 1


The rules are enter when a weekly candle closes 1.5% above or below the previous week's high or low. You can exit after 4 weeks with a time-based exit, or when you get a signal that the trend has changed.

All the systems on my blog are there for the reader to take, adapt and make their own. And I'm looking for some suggestions for improving this one. I've suggested using the ATR and daily candles as possbile improvements

I hope the system is of use to someone and I'd love to hear ideas for improving it and the results readers get when they backtest the system with their improvements.

So, any further positive results for this system ?
Any other markets are under approbation?

I'm currently trying to combine the system with Donchian channels. As a general rule, the smaller the Donchian breakout, the less reliable the signal. For example, a new 30-day high is significant, but not nearly as significant as a new 80-day high. You get the idea.

The Forex market is moved by several large central banks and a handful of big financial institutions - the clue is to look for the 'foot prints' in the market to see which side these big players are on (are the big guys net long or net short, that's what we need to know). It sounds simple but it's not always easy as they make great efforts to hide their foot prints and trick the majority of market participants who they need take the other side of their trades.

A new significant high or a low is a clear sign of the way the big players are moving the market, it's a sign of a trend and a trend once it is in is more likely to continue than not. Another sign of a big player moving in a certain direction is large movement is a relatively short period of time as in the system above.

The advantage of Donchian type breakouts is they are clear, but they often take a long time to produce a signal and miss a lot of the move.

The advantage of big movements is they are pretty quick to give a signal, but unlike the breakouts they are not always so clear cut - large movements can easily be bull or bear 'traps' you know...

I'm currently trying to combine the two things so that it's a combination of both large moves and new significant highs or lows with the larger the move less significant the high or low has to be; and vice versa.