In effort to build up motivation and consistency I decided to create a Journal Thread to monitor my progress on my EA. I am a recently graduated Econometrician and I’ve been trading successfully for little over a year now. I have my real life trading strategies, but considering my background I was always fascinated by developing a small EA, that could provide some diversification and work as a support during potential downswings.
Since I am all about the data my eyes turned to scalping. Why? It’s the easiest to test, it generates a lot of data. I do believe that designing a Scalping EA is more difficult than other types (you have to account for the current volume, time of the day, volatility, trend power, existance of a rally etc.), but I firmly believe that once those are accounted for the ability to find out the quality of the algorithm is far superior.
For now I will focus purely on EURUSD, its an obvious choice, it ensures the lowest transaction costs. The average cost of trading it on the broker I use is 0.7 pip in prime hours (accounting both spread and commissions).
Initially I will keep the TP=SL as it simplifies the analysis and makes working with the data easier. (I might consider switching to TP=SL+2COST, just to make 50% winrate breakeven, but time will tell).
Alrights so thats it for the premise.
At this point the entry strategies that I am testing are:
First 1H data is used to identify the favorable trading hour.
Second 1M data is used to find the scalp entry.
I will keep you posted boys. If it works I see no problem sharing it, so I would appreciate any feedback.
PS. I prohibit Martin_K to write in this topic and would love if that could be respected! It is reasonable since its my journal right?