Disclaimer: none of the following is trading or investment advice, it is merely my take on this strategy!
I coded this strategy in MQL 5 and ran an optimization over 2 inputs: take profit level and stop loss level (both measured in pips).
Lot size was hard-coded to the minimum (1 micro lot) so that I could focus on profit factors and the overall shape of the equity curve. In a more realistic simulation, this would rather be calculated using fixed fractional position sizing so that drawdown percentages could be optimized too.
Backtests were run with these parameters:
- Start date: 2016-01-01
- End date: 2020-02-18
- Symbol: GBPUSD
- Account currency: GBP
- Initial balance: £10,000.00
- Leverage: 1:30
Possible issues:
- This code is using TimeCurrent() in MQL to find the close of the 7 AM bar, which can cause variance in backtesting vs. live trading depending on server-time settings per-broker.
- I have not done a thorough test of this code, I wrote it fairly quickly as I was interested in the results because I know someone who tried trading this system.
The results are below. Orange headers are input parameters. The green rows are the ones I would consider trading myself (if I was currently trading FX).
