Hi guys! Here's a system I've been testing, back and forward. It seams to get nice results and I would like to automate it.
So, here it is:
Strategy Name: PwR EVA
Strategy Style: Trending
Favored Market Conditions: Trending
Entry Signal style:Indicator based and of course a little bit of common sense
Expected Trading Frequency: something around 5 and 8 trades a day
Strategy Expected Moves per trade: 3,75 the stoploss value
Time Frames: 5minutes
Times to Trade: 8.00 to 16.00 GMT
Pairs To Trade: Only tested eur/usd
Money Management/ Risk Management: Max stop loss of 10+ spread value, Take profit is always 3,75 times the stop loss value
Scaling in/out: nope
Order types: Pending stop orders (normal conditions), market orders if price is on the supposed value.
Indicators required plus any custom settings:
Pwr Indicator, candle range indicator and a 200 SMA.
Custom Fib with the following levels (1, 2, 3, 4, 5, 0 and -0,25) used to place orders, tp at level 5 sl at level -0,25
Trade conditions:
Well, the idea behind this system is to pick price lows and use small stop losses with a nice risk reward ratio.
Long trades:
PwR must be positive or crossing from negative to positive (I will attach examples with both scenarios).
Trigger candle must be completely above the 200 SMA.
Candle range must not exceed 10 pips.
So, if PwR is positive and the trigger candle is completely above the 200 SMA we wait for a "upward hook" (chart #1), then we place pending orders (buystops) using the custom fib on every candle with a range bellow 10 pips (a 10 pips candle is still valid) if the order don't get triggered in the next candle we cancel it, wait for the current candle to close and place another pending, repeating it until the order enters the market.
Chart#1 explanation:
Trading session starts at 8.00 GMT
PwR makes a "upward hook" (grey dashed line 1) but candle is too big, the next candle is too big also, then we get a valid trigger candle, the order is not triggered, that happens one more time and then on the 3rd candle marked with blue dashed line the order get finally triggered giving us a profit 3,75 times bigger our stop loss.
On the 2nd grey dashed line (2) we have another hook that is valid because we do not have any order on the market (tp from the last order was hit) so this hook counts. The order gets triggered and it resulted on a loss.
On the 3rd grey dashed line we have another signal; a "upward hook", candle is completely above 200 SMA and smaller than 10 pips, we place a new pending buystop, tp hit again.
When PwR crosses the 0 line from negative to positive we use the exact same rules as we take a crossing as a hook.
Important note: notice the 3rd trade on chart#1, after the order was triggered another hook occurred (green dashed line) but sinnce we already have a order in the market we dont use it
Reverse for shorts
Results so far:
I started to backtest since February 2011 (every signal taken) 103 losses, 48 profitable trades and I'm forward testing it since the beginning January.
I hope the explanation was clear and I hope we can all profit from this.
Regards, 0002097
So, here it is:
Strategy Name: PwR EVA
Strategy Style: Trending
Favored Market Conditions: Trending
Entry Signal style:Indicator based and of course a little bit of common sense
Expected Trading Frequency: something around 5 and 8 trades a day
Strategy Expected Moves per trade: 3,75 the stoploss value
Time Frames: 5minutes
Times to Trade: 8.00 to 16.00 GMT
Pairs To Trade: Only tested eur/usd
Money Management/ Risk Management: Max stop loss of 10+ spread value, Take profit is always 3,75 times the stop loss value
Scaling in/out: nope
Order types: Pending stop orders (normal conditions), market orders if price is on the supposed value.
Indicators required plus any custom settings:
Pwr Indicator, candle range indicator and a 200 SMA.
Custom Fib with the following levels (1, 2, 3, 4, 5, 0 and -0,25) used to place orders, tp at level 5 sl at level -0,25
Trade conditions:
Well, the idea behind this system is to pick price lows and use small stop losses with a nice risk reward ratio.
Long trades:
PwR must be positive or crossing from negative to positive (I will attach examples with both scenarios).
Trigger candle must be completely above the 200 SMA.
Candle range must not exceed 10 pips.
So, if PwR is positive and the trigger candle is completely above the 200 SMA we wait for a "upward hook" (chart #1), then we place pending orders (buystops) using the custom fib on every candle with a range bellow 10 pips (a 10 pips candle is still valid) if the order don't get triggered in the next candle we cancel it, wait for the current candle to close and place another pending, repeating it until the order enters the market.
Chart#1 explanation:
Trading session starts at 8.00 GMT
PwR makes a "upward hook" (grey dashed line 1) but candle is too big, the next candle is too big also, then we get a valid trigger candle, the order is not triggered, that happens one more time and then on the 3rd candle marked with blue dashed line the order get finally triggered giving us a profit 3,75 times bigger our stop loss.
On the 2nd grey dashed line (2) we have another hook that is valid because we do not have any order on the market (tp from the last order was hit) so this hook counts. The order gets triggered and it resulted on a loss.
On the 3rd grey dashed line we have another signal; a "upward hook", candle is completely above 200 SMA and smaller than 10 pips, we place a new pending buystop, tp hit again.
When PwR crosses the 0 line from negative to positive we use the exact same rules as we take a crossing as a hook.
Important note: notice the 3rd trade on chart#1, after the order was triggered another hook occurred (green dashed line) but sinnce we already have a order in the market we dont use it
Reverse for shorts
Results so far:
I started to backtest since February 2011 (every signal taken) 103 losses, 48 profitable trades and I'm forward testing it since the beginning January.
I hope the explanation was clear and I hope we can all profit from this.
Regards, 0002097
Attached Image (click to enlarge)
Attached File(s)
