I know a way to make the method a lot better!!!
Trade 2 lots.
Exit first lot with +30 pips
Exit second lot with +100 pips
I hope somone can make an EA modification..thanks Michel
I think the EA is already working exactly like that, is it or not ?
To the people that make the back test, on what time frame did it?
I ask this because if you did it on daily TF you will not see if the second position was stopped at break even once the first one reach 30 pips and we move the stop loss to Break even (you will no see the retrasements on a daily TF).
If we want to do a back tets for this system we have to look at one hour or less TF to see if we where stopped after we move our stop loss to break even.
The same if we want to make an EA Back tets.
The 30 pips close arrows are yellow the other close arrows are orange.
Umm.... Did you use martingale? Why did your lots increase after loss?
Oh and why were there so few orders?
On the pics I saw at least
PS: I think doji bars should be ignored. They could have closed the other way around so they are not really up or down candles, they are middle candles.
Want me to write you a decent EA?
Ok here's the system I have come up with. I have paper traded it and it has been successful over the past year for GBP/USD, GBP/JPY, USD/CHF, and CAD/JPY.
1) Daily Charts with NO Indicators
2) If price has 3 consecutive days where the Close is higher than the Open, on the OPEN of the 4th candle, Initiate a Buy Order.
3) Stop is 2 pips below the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips
2) If price has 3 consecutive days where the Close is lower than the Open, on the OPEN of the 4th candle, Initiate a Sell Order.
3) Stop is 2 pips above the previous candle, or 90 pips (whichever is lower)
This is an easy system because it eliminates many factors that make the novice trader unsuccessful (overtrading, ignorance about how to effectively use indicators, etc.).
I found that MANY times the 30 pips was hit. The 100 pips take profit was hit but only about half the time. The key, however is to continue looking for a new setup once a trade has ended. What I mean by that is let's say that you enter a Buy trade and it is successful for 130 pips, and it continues heading up, YOU DO NOT RE-ENTER THE TRADE. You look for a completely new signal, which means that price needs to close Lower than it's open before you could look for a new signal to occur.
Out of the 4 pairs that I tested, GBP/JPY and GBP/USD had the best results (close to 1000 pips each for they year), followed by CAD/JPY with 600 pips, and then USD/CHF with 300 pips.
So if one pair is not setting up then another pair usually was.
Try the following change
Open 1st position at current price.....take profit 100 pips
Add a second position at minus 30....If executed ...close at +60 from execution price
Maybe it may help
Thats an interesting point but 30 may mean that SL will be hit for 100 before -30 is executed. Thats rare though.
if you have a long position at 0 and stop at -100 and a second position at - 30 and a stop at - 70 ...stops get hit together ..........
The problem is with the stop.
3) Stop is 2 pips below the previous candle, or 90 pips (whichever is lower), thats for buy. If stop was 25 and we simply kept moving that way? Choppy market for example.
Can someone help clarify the re-entry rule (or no re-entry rule)? I think I understand just want to be sure. I've attached a pic. The arrow shows a long trade and the check mark is the trade reset - one could re-enter after the bear candle. Is this correct?
There is no re-entry, you just close holf of the trade after 30 pips of profit. Alternatively, you could put two orders in at the same time and close one of them after 30 pips of profit and let the other one run until it hits the 100 pips of profit. I hope that clarifies that part for you.