The community had helped me a lot, so now I hope to give something back.
A friend once asked me for a profitable strategy so that he could trade it manually.
I then gave him the strategy of one of my XAUUSD-EA on the H4 chart:
All actions and checks take place ‘On Bar Open’, i.e. directly after closing an H4 candle and opening the new H4 candle.
Preparation (once or per chart):
Open the XAUUSD chart in the H4 timeframe.
Add the following indicators:
Gann HiLo Activator with period 6.
ATR (Average True Range) with period 10 (for SL calculation).
ATR (Average True Range) with period 25 (although the PT is fixed, it is good to know the value in case the strategy is adjusted).
Optional: An indicator that shows you the Highest High and Lowest Low of the last 36 candles (e.g. Donchian Channel with period 36), or you determine these values manually.
Trading logic (check at the opening of each new H4 candle):
- identify entry signals:
Long entry signal:
Check the Gann HiLo (period 6) indicator on the previous closed H4 candle ([1]).
A long entry signal is given when the Gann HiLo on the previous candle shows a down trend. (Note: This is a counter-trend approach!)
Short entry signal:
Check the Gann HiLo (period 6) indicator on the previous closed H4 candle ([1]).
A short entry signal is given when the Gann HiLo on the previous candle shows an uptrend (UP trend). (Counter trend here too!)
-
execute long entry:
Condition: A long entry signal (see above) is present.
Action:
Determine the Highest High of the last 36 H4 candles, starting with the penultimate candle and 35 candles before that (corresponds to Highest(Main chart, Period, PRICE_HIGH)[1]).
Place a buy stop order at this determined highest high.
Validity of the order: This pending order is valid for 49 H4 candles. If it is not triggered, cancel the order.
Calculate stop loss (SL):
Current ATR_10 value = ATR(period 10) on the H4 chart
SL in pips = 1.05 * Current ATR_10 value
If SL in pips > 250 pips, then set the SL to 250 pips. Otherwise use the calculated value.
Set profit target (PT):
The PT is always 250 pips (due to the min/max PT rule).
Order Management Parameters (for the active order): Make a note of the values for break-even and trailing stop. -
execute short entry:
Condition: A short entry signal (see above) is present AND there is NO long entry signal (i.e. the Gann HiLo on the previous candle does not indicate a downtrend).
Action:
Determine the Lowest Low of the last 36 H4 candles, starting with the penultimate candle and 35 candles before that (corresponds to Lowest(Main chart, Period, PRICE_LOW)[1]).
Place a sell stop order at this determined lowest low.
Validity of the order: This pending order is valid for 49 H4 candles. If it is not triggered, cancel the order.
Calculate stop loss (SL): (Identical to the long side)
Current ATR_10 value = ATR(period 10) on the H4 chart
SL in pips = 1.05 * Current ATR_10 value
If SL in pips > 250 pips, then set the SL to 250 pips. Otherwise use the calculated value.
Set profit target (PT):
The PT is always 250 pips.
Order management parameters (for the active order): Make a note of the values for break-even and trailing stop. -
trade management (as soon as a trade is active):
Set stop loss to break-even (BE):
Once your trade is 60 pips (MoveSL2BE) in profit, move your stop loss to your entry price + 5 pips (SL2BEAddPips) for long trades or entry price - 5 pips for short trades.
Activate trailing stop:
Once your trade is 86 pips (TrailingActivation) in profit, activate a trailing stop of 22 pips (TrailingStop). This means that your SL will follow the price at a distance of 22 pips if the price continues to move in your favour.
No specific exit signals: The variables LongExitSignal and ShortExitSignal are set to false. This means that there are no explicit exit signals based on indicators. Trades are only closed by SL, PT, trailing SL or the Friday rule. -
Special rule: Close on Friday:
Every Friday at 20:30 server time of your broker: close all open XAUUSD positions opened with this strategy manually, regardless of whether they are in profit or loss.
You can use it for manual or EA trading.
