No indicators are used in this strategy!
Here's a simple trading strategy algorithm you can follow:
- Open the daily chart for EUR/USD with a lot size of 0.1.
- As soon as a new candlestick (or bar) forms, open two trades simultaneously (one buy and one sell) with a Take Profit set at 10 pips.
- Set your Trailing Stop and Stop Loss at 50 pips.
- If one of the trades closes, open an additional position in the direction of the remaining trade.
Exiting trades: Always exit through Stop Loss or Take Profit.
Backtesting Results
We tested this strategy on EUR/USD daily chart from January 11, 2007 to January 11, 2008:
The optimized parameters yielded impressive results during this period:
In total, we made over $6,100 with a profit factor of 5.81 and an expected payoff of nearly 100!
For more insights, check out the forward testing results outside of our optimization period as well as results on different timeframes in our magazine's issue from April 14, 2008.
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