Understanding the 1-2-3 Method for Trading Success
Hey fellow traders! Today, I want to share an exciting method that's been making waves in the trading community—the 1-2-3 strategy. You can check out the original details here. While there are many ways to implement this method, I’ll walk you through one version that I've found particularly effective.
Getting Started with Your Setup
To kick things off, I recommend starting on a one-hour chart for EURJPY. In my testing, this setup has shown a pretty solid profit-to-drawdown ratio. Over two years (from May 7, 2006, to May 7, 2008), the results were impressive: a profit of 1914.56 with a maximum drawdown of 384.06, giving us a ratio of about 4.99. For one year (from May 7, 2007, to May 7, 2008), the numbers were still decent with a profit of 769.69 and a drawdown of 301.81, resulting in a ratio of 2.55.
One thing to note is that this EA (Expert Advisor) doesn’t trade too frequently. In fact, between May 7, 2007, and May 7, 2008, it only executed 6 trades! If you have any tips on how to enhance this EA or if you've had experiences with it on different currency pairs, I'd love to hear from you!
Technical Details of the EA
The EA file you’ll be working with is named 1-2-3_forCodeBase_v01.mq4. One parameter that might raise an eyebrow is the TrendRatio. This setting dictates how much longer the previous trend needs to be compared to the new trend that’s forming.
Additionally, I’m using two indicators in this EA: RelDownTrLen_forCodeBase_v01.mq4 and RelUpTrLen_forCodeBase_v01.mq4. Don’t worry; these indicators are included with the EA.
Let’s Connect!
I’m eager to hear your thoughts and experiences! If you’ve tried this strategy or have suggestions for improvements, drop a comment below. Happy trading!
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