Spreads vary, but say on Alpari usdjpy is 2 pips
so thats expected value per trade 4.6879 -2 pips - commisions (if any.)
remember to work on money management, work on money management they always said when I started out. Glad they did
always aim for greater than 2:1 reward to risk ratio.
I must say I prefer your method 2 take profit.
If you use a 3:1 in one strategy setup, thats say risking 5 pips for a possible 15 pip gain> this means you only need to win 33% of your trades to break even. Anything over that is profit.
Try and foward test this in a simulated trading on a demo, its easy to sign up. I am using Alpari demo acc where I test my strategies before trying them for real. Just start with $1000 and by the time you can regularly doulbe that, then you are ready to go live.
Hi I’ve been very busy lately working on a €$ scalper and a USDZAR “scalperX” but will get to coding this soon so you can plug in your values and backtest anytimeframe, with selectable trading hours.
Hey buddy, just got back from vacation. I’ll get you something you’ll like.
Edit: Alright, I’ve coded up your system using EasyLanguage for you. It has an optional time filter option, as well as an optional “Early Exit” feature which is programmed according to your rules. FastEMA, SlowSMA, RSILength, RSILow, RSIHigh can all be set by the user. And I’m using method 1 for your take profit because, well, it saves me some work. But actually, the trailing stop isn’t the best exit for this (personal experience). I know you probably don’t have TradeStation or MultiCharts, but don’t worry, I’ll upload the complete backtesting results for you.
Reason why I opted out of MT4 is because the lack of quality and information you’ll get out of it. If you want accurate results this is what you’ll need. I have my own tick data (I collect from my own servers) so you can be sure I’m using 99.998% accurate data, whereas MT4 uses 90% tops (which is a huge difference). I can also factor in variable spreads, as well as slippage, commissions and interest using EasyLanguage.
Alright, I’ve attached a package for you. Inside you’ll find the text file of your system that I whipped up for you. As well as your backtesting results with the default parameters. Then I did a quick optimisation and uploaded the report for that. Finally, backtesting results with parameters that I chose after the optimisation.
Edit: Forget to mention, this is on USDJPY, 1h. From April 1, 2010 to August 4, 2012. Slippage was set to 1 pip per trade, no commission, and variable spreads recorded from Alpari UK.
But actually, the trailing stop isn’t the best exit for this (personal experience). I know you probably don’t have TradeStation or MultiCharts, but don’t worry, I’ll upload the complete backtesting results for you. 