New system being tested - not looking for millions of pips here, just good probability trades with favourable win/loss ratio.
Timeframe: D1
Currency: EURUSD (need to test others!)
Test period: 01/2013 - 08/2014
Return: 1542 pips
16 Wins 5 Losses 69% Win
The system
- EMA4 and 8 placed on MACD 12,26,9 using previous indicator data (on your marks)
- EMA 21 placed on chart for trend verification (get set)
- Pullback candle for market entry and ATR SL/TP calculations (go)
Close price of pullback candle +/- ATR*1.5 is used to calculate stop loss and take profit. Approx. 1:1 risk reward. (still early days of testing).
When the pullback candle is close to the EMA21 the risk is higher so take caution. On the flip side EMA21 does often provide support/resistance.
I noticed that the ATR 1.5 for stop loss seems too large and ATR 1.5 for take profit is too small. But, i’m conservative and this doesn’t account for scaling out of positions and trailing stop etc.
Still, the stop loss ATR needs some adjustments I suspect…
Here’s the excel sheet of forward test, warts and all.
Strat1.zip (9.07 KB)
And a screenshot to get things going.
