Forex Math Daily

hello guys, this is my first thread.

I want to share my trading system, which maybe some of you can perfect it. because this system is very easy to learn.

Signal = (High (day before yesterday
) + Low (day before yesterday
)) / (High (yesterday) + Low (Yesterday)

if result
1.00000 then Sell signal
if result
0.99999 then Buy signal

How to entry?

1. Buy Stop at High/Low of yesterday
2. SL at 50% range candle yesterday
3. TP at 100% range candle yesterday

for example on GBPUSD

03 April 2019
High : 1.31952
Low : 1.31203

04 April 2019
High : 1.31901
Low : 1.30593

(1.31952+1.31203) / (1.31901+1.30593) = 1.0025181527959

so signal for 5 April 2019 is Sell

if you have a suggestion don’t be ashamed to criticize me.

because of these criticisms, I can perfect my weaknesses

sorry my english so bad

welcome to the forum

not a criticism, but what your system boils down to is that if yesterday’s median price is higher than that of the day before, it’s a buy signal, and vice versa

there’s a simple, attractive logic there

what matters is whether or not, when you run a quick backtest of this method over a decade’s data for any major currency pair, it demonstrates an edge, net of dealing costs

either it does, or it doesn’t - it’s objective and factual

the difficulty is that in order to run such a backtest, you need some defined trading parameters, not just a description of a “signal”

in other words, you need to define (probably by trial-and-error backtesting?) the targets, stop losses and trade management/duration as well

if you can do that, and demonstrate an edge, then you’d have a viable system

sorry to sound like a downer, but i think things like this have all been done hundreds of times before, and the truth is that although the idea is based on something attractive (i.e. you’re trading in the direction of the daily trend), it isn’t in itself going to be profitable over the long term

it’s absolutely essential, one way or another, to have the (very easily acquired) software and (very easily learned) skills to do this kind of backtesting, otherwise all you’re really doing is guessing, and in this game long experience teaches us all that we can’t develop a profitable system by guessing

one has to be able to prove or disprove it objectively, over a statistically significant data sample, and that means testing

without doing that it’s incredibly demanding of time and attention, and for something that may lead nowhere profitable

a week’s or a month’s figures are only “anecdotal”

either there’s an edge there, or there isn’t

you need to know which, to decide whether it justifies the time and effort put into the thing