So I want to back test this trading system but I use higher time frame s/r levels so just wondering how that would work as it would be quite hard placing the s/r levels from past price action. my system is plot s/r levels on 1 hour time frame, look for a trend on the one hour using the 200sma, 50 ema and 20 ema. If all three are moving fanned out and pointing higher that’s my signal for a uptrend on the 1 hour, once I’ve established that I drop down to the 15 minute, all the moving averages must also be pointing higher and fanned out. The zig zag indicator must plot 2 higher highs and one higher low, drag my Fibonacci tool from the bottom of the impulsive move up to the top. Price must then correct to Either the 38.2, 50.0 or the 61.8. To add confluence price must also be at the 20 ema, 50 ema or inbetween them. Using my stickastics as my entry trigger once it crosses from the over sold area. I then use my higher time frame s/r levels for where it could potentially go to so I pace 2 half trades, one with a 2/1 risk to reward. The second I move stop to break even once the first trade hits my tp then leave the other trade running moving my stop under each new higher low made. This also applies to a down trend.
I think you made it too complex, I mean combining several indicators and patterns hides the underlying structure of the market instead of highlighting something that prices separately can not do. Think about that.
Yeah you have to manually back test. The other thing you can is forward test it too so you cant see the result.
I suspect you mean a 1:2 risk:reward ratio, not “a 2/1 risk to reward”?
Yes I meant risking 1 to make 2
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