Hi all,
This strategy is comes from my experience of straddling.
Opposite to other strategies, it doesn't need ANY analysis to do it. Everything is based on probability.
Here's the plan:
As we all know, currency pairs won't just stay as a flat line. At some point, they will decide which way they will go, at a higher or lower price level. Therefore, my guess is the following: if the pair has moved to one direction for at least (at least...) 60 pips, then it'll move towards this direction for another 2 pips.
There is no science behind that. It's just that after 60 pips (you can put more or less pips, the point is that it must be a lot of pips) the probability of this pair going in the same direction for the past 60 pips is gonna go for another 2 pips is statistically high.
I will start backtesting this technique on a demo account with the following conditions:
1, It'll be an Axitrader account with 500$US on it, with 200:1 leverage.
2, I will choose 5 pairs to put in each 10% of my fund in. After all, there are two orders (buy stop and sell stop) per each pair.
3, They will all entered by orders.
4, The take profit will be +2 pips, while the stop loss will be -20 pips. I honestly think that the probability of hitting stop loss among 10 orders is lower than 10%. Maybe I'll hit it once every 15-20 orders.
In fact, this strategy takes for granted that in most situations, these pairs should continue their already forming trend for at least another few pips. We are asking for one.
This system will be backtested for a month from now, and results will be posted on this same post in 1 month.
Again, this is an open source strategy. Any comment or constructive suggestion is more than welcomed.
Results (updated in real time)
Backtest account #1:
500$ at beginning on 06/12/2014
641$ as of 06/25/2014
Thanks!
Wllen1
This strategy is comes from my experience of straddling.
Opposite to other strategies, it doesn't need ANY analysis to do it. Everything is based on probability.
Here's the plan:
As we all know, currency pairs won't just stay as a flat line. At some point, they will decide which way they will go, at a higher or lower price level. Therefore, my guess is the following: if the pair has moved to one direction for at least (at least...) 60 pips, then it'll move towards this direction for another 2 pips.
There is no science behind that. It's just that after 60 pips (you can put more or less pips, the point is that it must be a lot of pips) the probability of this pair going in the same direction for the past 60 pips is gonna go for another 2 pips is statistically high.
I will start backtesting this technique on a demo account with the following conditions:
1, It'll be an Axitrader account with 500$US on it, with 200:1 leverage.
2, I will choose 5 pairs to put in each 10% of my fund in. After all, there are two orders (buy stop and sell stop) per each pair.
3, They will all entered by orders.
4, The take profit will be +2 pips, while the stop loss will be -20 pips. I honestly think that the probability of hitting stop loss among 10 orders is lower than 10%. Maybe I'll hit it once every 15-20 orders.
In fact, this strategy takes for granted that in most situations, these pairs should continue their already forming trend for at least another few pips. We are asking for one.
This system will be backtested for a month from now, and results will be posted on this same post in 1 month.
Again, this is an open source strategy. Any comment or constructive suggestion is more than welcomed.
Results (updated in real time)
Backtest account #1:
500$ at beginning on 06/12/2014
641$ as of 06/25/2014
Thanks!
Wllen1