After learning the Type 2 setup from Steven (he calls it #4), I came across this thread by 60 last year. I have backtested, forwardtested, and live traded it across different markets and timeframes, mainly on D1. A few months ago, I showed it to a friend who is a trader for a big bank. I then proved to him that there is an edge no matter which market is traded, by backtesting using Tradestation data across stocks, commodities, and forex markets.
Stocks, commodities, forex
Total trades: 141
Wins: 89 (63%)
Losses: 52 (37%)
Reward:risk 1:1
Stocks: 70%
Commodities: 60%
Forex: 63%
The test took all setups mechanically, without regard to discretionary factors such as wide-range bars, overlapping bars (congestion), quartile closes, etc. So there is obviously room for discretion to improve results, let alone using different money mgt techniques than a fixed 1R target. While I would not hang my hat on a sample size of 141 trades, the results are actually similar to my experience using the strategy. As well, I previously posted results of a more extensive forex-only backtest for type 2 in post 1379:
Period: 5.06 years
Timeframe: D1
Pairs: EU, EJ, AN
Trades: 172
Reward:risk 1:1
Win rate: 65.7%
Remember, it is important to do your own research, testing, and due diligence. Check everything out for yourself. If your mother tells you she loves you, go check it out.
Stocks, commodities, forex
Total trades: 141
Wins: 89 (63%)
Losses: 52 (37%)
Reward:risk 1:1
Stocks: 70%
Commodities: 60%
Forex: 63%
The test took all setups mechanically, without regard to discretionary factors such as wide-range bars, overlapping bars (congestion), quartile closes, etc. So there is obviously room for discretion to improve results, let alone using different money mgt techniques than a fixed 1R target. While I would not hang my hat on a sample size of 141 trades, the results are actually similar to my experience using the strategy. As well, I previously posted results of a more extensive forex-only backtest for type 2 in post 1379:
Period: 5.06 years
Timeframe: D1
Pairs: EU, EJ, AN
Trades: 172
Reward:risk 1:1
Win rate: 65.7%
Remember, it is important to do your own research, testing, and due diligence. Check everything out for yourself. If your mother tells you she loves you, go check it out.
