Discussion of article "80-20 trading strategy"

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New article 80-20 trading strategy has been published:

The article describes the development of tools (indicator and Expert Advisor) for analyzing the '80-20' trading strategy. The trading strategy rules are taken from the work "Street Smarts. High Probability Short-Term Trading Strategies" by Linda Raschke and Laurence Connors. We are going to formalize the strategy rules using the MQL5 language and test the strategy-based indicator and EA on the recent market history.

The signal block and the indicator making a layout according to the strategy are described below. You can also see a few screenshots with the indicator operation results. They clearly illustrate patterns corresponding to the system rules and trading levels linked to the patterns.

M5 timeframe:

80-20 TS pattern

Author: Alexander Puzanov

 

Well prepared and structured article - thank you for taking the effort.

Also the code is commented (even if I don't speak Russian very well)

Thanks for sharing!

 

It seems like the criteria for this strategy would rarely be met. 

1. First a strong unhesitating momentum candle (with wicks < 20%).

2. Then price must exceed the high or low of that candle, thus confirming the momentum. 

3. Then price must reverse and cross the border of yesterday's range against its previous momentum.  This is a paradox, and would rarely happen except with news.

If I understood correctly I would guess that this strategy rarely places trades. Is that what your research shows?

 

Перевод Google

Похоже, что критерии этой стратегии редко будут удовлетворены.

1. Сначала сильный импульс неколеблющийся свеча (с фитилями <20%).

2. Тогда цена должна превышать максимума или минимума этой свечи, подтвердив тем самым импульс.

3. Тогда цена должна развернуться и пересечь границу вчерашнего диапазона от его предыдущего импульса. Это парадокс, и редко случаются, кроме как с новостями.

Если я правильно понял, я бы предположил, что эта стратегия редко ставит сделок. Это то, что ваше исследование показывает? 

 
clemmo:

It seems like the criteria for this strategy would rarely be met. 

1. First a strong unhesitating momentum candle (with wicks < 20%).

2. Then price must exceed the high or low of that candle, thus confirming the momentum. 

3. Then price must reverse and cross the border of yesterday's range against its previous momentum.  This is a paradox, and would rarely happen except with news.

If I understood correctly I would guess that this strategy rarely places trades. Is that what your research shows?

 

Перевод Google

Похоже, что критерии этой стратегии редко будут удовлетворены.

1. Сначала сильный импульс неколеблющийся свеча (с фитилями <20%).

2. Тогда цена должна превышать максимума или минимума этой свечи, подтвердив тем самым импульс.

3. Тогда цена должна развернуться и пересечь границу вчерашнего диапазона от его предыдущего импульса. Это парадокс, и редко случаются, кроме как с новостями.

Если я правильно понял, я бы предположил, что эта стратегия редко ставит сделок. Это то, что ваше исследование показывает? 

Well, the reports contain the total amount of trades, which are 233 in one case, in almost 6 years. I would not call it a small number, but they are hardly profitable!
 
:) interesting, seem work nice on trending market, but on ranging would be difficult to gain pips
 

Thanks for sharing, gold 0.3 U.S. dollars can return to the capital of the broker, there is a need to contact WeChat whkh18 Both username

 

Russian? No problem! I speak German and reasonable English and found my way:

Put Windows on Russian for 8-bit characters. My Windows 10 is in German now, Later I can add, how to do it in English Windows 10. Now for German Windows 10 - this is the way:

Open "Control Panel"

switch to "Large icons" or "Small icons"

From there open "Region"

On the top you find 2 pages, named "Formats" and Administration" switch to "Administration"

Now you see two buttons (where you need Administrator-rights) "Copy settings..." and "Change locale"

The latter one is what you need, "Change locale". Here you choose "Russian (Russian Federation"

You need to restart, by clicking OK and your way out of there the machine will tell you.

Now ASCII 7-bit is still correct (English) but the higher letters (above 127) are now Russian.



Then you can copy the Russian from Metaeditor and paste it to a translator i.e. translate.google.com.

I recommend to translate to English - most of the time it looks like any US-programmer did it. to German is very often terrible (just my opinion).

Greetings to the non-Russian-speaking world (and to the Russian spoken authors as well,

Gerhard

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