Great to know you coded an Ea, but I am not sure why you tested the strategy on eur/usd? The title clearly states that the strategy is meant for GBP/JPY, because of the high volatility of the pair. I would be curious to know your results on that pair. What is your exit strategy so far? You need to exit only on opposite signal for a loosing trade, and what about your TV strategy?
Also, maybe you should remove any trades taken during dead hours (4-6pm and 2-4am new York hours).
Lastly, I donāt think that any Ea can give good results in general. Every strategy needs human instinct and interaction. For example, If I see that the candles are big and trending, I might try to ride the trend before I get out. If the candles are small and it takes me a couple of hours to grab a few pips, I might exit my trade sooner with a smaller profit. Donāt trust robotsā¦ Only for testing purposes if you really want, but donāt trade with robots. None of them were ever successfulā¦ Unless you can prove me wrong.
I tested on eur/usd to see if it respected the entry rules. I had eur/usd historical data at hand to test with a high modelling quality. Back testing with poor modelling quality is very misleading. Even with good modelling data it can be misleading, the best way is to test it on a demo account.
The exit strategy needs work. I used a 10 pip trailing stops which probably missed out on big movements. For a more volatile pair such as gbp/jpy 10 pips will probably be very ineffective.
In terms of removing dead hours, you are spot on. I saw a lot of whipsaw in those dead hours. It still needs a lot of work. Iāll play around with it a little more and send you a copy.
Iāve been trying it, on the GBPJPY 5M as outlined, and honestly, Iām getting clobbered, even if chasing just 10 pips or so. I trade mostly the NY open so also catch the London overlap.
Iāve used it this week. I added a MACD indicator looking for trades that cross the 50EMA with signal line crosses in the same direction as the MACD. Has worked well so far.
NZDUSD and USDJPY
Basically I took Kathy Liens 5min MOMO strategy and changed the 20EMA for StevieStevies 50 EMA. Still using the same rules of waiting for the signal line to cross in the same direction as the candles are crossing the 50EMA.
Nice, I will take a look. What is that app you are using now ?
And why NZDUSD and USDJPY, but not GBP/JPY, which in theory is one of the best pair for scalping?
Also, how are you doing with your exits?!
I like StevieStevie, I may change my username.
Cheers,
Steven
EDIT: Oh the app is just MT4 with a black background. I did not recognize because mine is white. How did you make it black ?!!!
Sorry StevenSteven. My brothers name was Steven but we always called him Stevie.
Iām using the MT4 app for the iPhone. They allow either White or Black backgrounds.
I wasnāt aware that the GBP/JPY was the best pair to use for scalping. Iām a newbie to this so, thanks for the tip!
I mostly scroll they the pairs with the lowest spread or ones that are moving fast and look for your set up rules. I found if I added the MACD to the chart, I can weed thru most of the wipsaw trades.
I donāt know. Maybe Iāve just been lucky so far.
Anyway, thanks for the stradgey!
Keep them coming. This is fun
I do not think you will like my answer mate!
I determine my TP with instinct and experience. If we are during busy hours, if I see I may be riding a trend, if the candles are rather big than small, then maybe Ill expect the movement to be big enough and set my tp around 50 pips. If the situation is the opposite, ill be happy to grab 10-20 pips. But there unfortunately no set of rules for the TP yet! If there was, then my system would be a holy grail because at least once a day the trend can grab you 100+ pips. But this why even with a good system a trader almost always fail. Because finding the entry is not even half of the game! The most important is finding the exit. Sorry if I am disappointing you.
Instinct can work when you are very used to trading one strategy, but then you need to learn to relax and not stress out, or you will make emotional desicions when it comes to exiting your trade.
You can try traling stops too. Sometime it works well.
But hey, I may not give you a good TP strategy, but I did give you a great SL strategy, which is already very important, and you should have a TP strategy that lets you take more profit that what you generally lose when you lose. Thats the beauty of this strategy.
If you are looking for a purely mechanical strategy, with pre defined, set and forget, SL and TP, there are a few on this forum that are not bad. You should check out āA simple GBP/USD Strategy (No indicator needed)ā by Melodica. His strategy is pretty awesome (although its basics of Forex trading, using daily breakouts to make profits). And it also works very well on many other pairs than GBP/USD, if you adapt the hours and the TP and SL calculation settings.
Cheers,
StevenSteven
Hey, Iāve used this strategy and developed a method for tps. This doesnāt work in a choppy trade (e.g it goes down up down but doesnāt display signal to stop the trade). However if you do enter the trade and several reasonably big candlesticks go down in your favour, you Stop the profitable trade when a candlestick goes against you. As, Ive found this usually is the turning point. Please try and get back to me!
