The GBPJPY seems to have a calm period for a few hours prior 6:00GMT. Generally there is a good predictable price move immediately following this calm period.
Only start the trade between the hours of 5:00 and 7:00 GMT. Start the trade when there is a bullish crossover below zero on the MACD or a bearish crossover above zero. Exit the trade with the next crossover.
Profit loss should be placed 25 pips from the beginning of the candle that started the crossover.
That’s it!
I think that this system needs to be backtested a little farther but looking back over the last several months it seems to be fairly profitable.
Attached is the backtest file. Over about 8 weeks there was about 1400 pips of profit and about 240 pips lost. The average gain was generally twice the size of the average loss.
I am surprised this did not generate more interest. Are yoy still trading it? What are your latest results? I guess you are talking about 6am gmt right? what are the macd settings?
What I love about your backtest results (even though they don’t cover a very long period of time) is that the time period during which your results show that this method performed well is a time period in which a lot of stuff seems to have simply fallen apart. In other words, the market conditions this summer have really hurt the stats of a lot of systems that had shown really good results over a very long period of time. This system seems to have done well in that odd market environment. I have been looking high and low for some things that would help smooth the equity curve, and this does look promising. I am going to add it to my growing list of “research” items.
Oh, and I see that this was your introductory post…welcome. I too hope that you will restart this thread, I think that you can get some folks to follow it.
I hope he comes back to offer a bit more clarification, the 2 statements in the original post seem to contradict with 1 saying target 25 pips & the other saying exit at the next crossover, or should profit loss read stop loss?
I tried zooming into the chart but cant make out the settings. Any ideas?
I will try paper trading with standard settings 12-26-9 assuming the SL is 25 & TP at next crossover
This system should be quite easy to backtest for someone who has basic coding knowledge, unfortunately my knowledge is not quite up to it yet which is a shame because my charting backtesting module will actually calculate the optimum settings for macd. I will do a bit of studying & maybe i can crack it in a couple of weeks
