This is a simple and very effective system. It may seem unreal but test it out.
Rules:
Instrument: EUR/USD
Timeframe: H4
Indicator: Accelerator Oscilator (the built in in Metatrader)
Only take action at opening of a new H4 bar. On bar open look at the value of the Accelerator 61 Bars before the current bar:
if it is positive: trade short (or reverse a previous long)
if it is negative: trade long (or reverse a previous short)
You will have only one open position at any time, either you are long or you are short, you are always in, just reverse when the sign of the accelerator changes. No stops, No limits.
This looks like a coin toss to me. I have done some spreadsheet back testing on similar strats. If you backtest a large enough set of data you will see your equity curve oscillate and gradually move down due to spread.
If your backtest is small it may show an increase in equity or a decrease, it just depends on the set of data you test. If you pull money out at a high point and start over you might do ok. The hard part would be knowing when to pull the money out.
I have not tested this strat, but I don’t know how a bar on an indicator 244 hours ago is anything but a random entry.
