I’ve found this strategy online, and I wanted to know your opinion on the matter.
How it works: Basically, you wait for the close of the 7am GMT candlestick close on the 1 hour timeframe, then you start a buy stop order 2 pips above the candlestick’s high, and a sell stop order below the candlestick’s low. Whenever one order gets filled, you cancel the other one, put your stop loss 5 pips above or below the 7am candle high/low (depends on whether you went short or long obviously), and set your take profit to 50 pips. I’ve backtested this strategy, and in January 2020, you would lose -34 pips on the EURSD.
I’ve also modified it a little bit, by inserting a 21 MA on the chart, and only put the buy if price closed above the 21MA, and sell stop order if price closed below 21 MA line, and with this method not only you would get a 70% winrate, but you would get 177 pips in January on the EURUSD.
What’s your opinion on this? Do you think this strategy is worth it?