Friday, August 12, 2016

Hi everyone,

So after a while, I came up with an strategy that I build myself. I realised after trying many trading methods, that the best and safely way, is to trading on daily charts, since is the one with the strongest information, and is not that slow as weekly or monthly charts.

I manually tested this strategy with several currencies like EURUSD, AUDCAD, USDCAD, USDJPY and GBPUSD from 2010 to 2016 and in all of them, gave me good results, but the best was on EURUSD.

The strategy is just based on indicators, I don't use trading news at all. I use the following indicators:

- Ichimoku (just the chikou span at 26 periods, I delete the rest of the information)
- Eiken Ashi smoothed.
- Eiken Ashi.
- CCI (14).
- MACD (12,26,9).
- Stochastic (5,3,3).


The default SL is 150 pips for any entry. I'm getting 5% risk, meaning, if I have an account of 10K USD, I will make the position to lose maximum 500 USD per position.


These are the rules for a long entry:

1. Chikou span on top of the price.
2. Heiken Ashi smoothed on blue color (2 consecutives candles at least).
3. Heiken Ashi (the regular one) in white color (2 consecutives candles at least).
4. CCI in bullish trend (going up) within 90 and 45 degrees.
5. MACD either entering the bullish trend or leaving the bearish trend.
6. Stochastic red line bullish (going up).

For short position is just the opposite. If you entry in a trend where your position gets closed by the SL, and all the signals are giving the entry again, you just place a new order on the trend direction.

I also use a custom trailing stop to manage the orders, and it works this way:

- The price goes to 50 pips in my direction -> The SL moves to 15 pips profit.
- The price goes to 75 pips in my direction -> The SL moves to 25 pips profit ( 10 pips ).
- The price goes to 100 pips in my direction -> The SL moves to 36 pips profit. ( 10 + 1 ).
- The price goes to 125 pips in my direction -> The SL moves to 48 pips profit. ( 10 + 2 ).
- The price goes to 150 pips in my direction -> The SL moves to 61 pips profit. ( 10 + 3 ).
- And so on...until the price gets 1000 pips profit, then the SL is equal to the price pips profit and the position gets closed.


As you see, every 25 pips in my direction, I increase the trailing SL in 11,12,13,14,15....until the pips gained are equal to the SL, then the position gets closed, but that will happen when the profit is around 800, and it doesn't happen often.

I attached a screenshot where I marked what happened using my strategy in EURUSD for almost one year.

I just trade one position at a time, until this gets on positive ( until the price goes to 50 pips and the SL moves to 15 pips, then if the price just reversed, I will always gets 15 pips). But when the position is "secured" I open another one if I get the signal.

I used this strategy on demo for 4 months, and sometimes I had 5 positive positions, just gaining pips. In average, it gave me 15% to 20% profit. But before going live, I'd like to share it and to get some feedback.

I also attached the template with the custom indicators.

Let me know guys what do you think and if there is some improvements.

Also will be awesome if someone could automatise the strategy into an EA.

Please share your results and feedback.

Good luck.



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2 comments:

  1. Thank you for your great post. It's really very informative and really helpful. Please Keep posting. Thanks again.
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