There is no strategy that earns in all conditions. My main strategy is based on breakouts, which is why I need strong, daily trends to make money. This is perfectly shown by the last two months. May, which has strong trends and June, an extremely consolidating month.
This reflection brought an interesting idea for a new strategy.
In the previous post I have already indicated what I mean, it is about playing the false breakout formation or to losing the momentum after a strong movement.
- Determining the last top / bottom according to the trend,
- when the price hits the given level, I start searching for the moment of entering in the opposite direction.
- Based on: stochastic / fractals / reversal candle formations.
- Indicator for determining the trend - I am big fan of the averages so probably I will stay with it
- Indicator / formation to determine the moment of entry - the simpler the better, I will test what I wrote above
In the morning I set the last top or bottom (zigzag) according to the trend (MA), When the price hits the given level, I start to look for the opposite signal according to the selected indicators. I am opening the position. After opening, I put SL behind the last top / bottom, I close the position at the end of the day *
- I will determine exact hours during EA tests.
I am getting into coding and testing, I’ll soon post the first results.
Oh, 98% of the strategy goes to the trash bin, so this idea can be exactly the same