Hey guys, this is my first strategy, I just wanted feedback and your honest opinions on how I can improve this strategy and if you think its a decent strategy overall. 1 I use the 1 hour timeframe to mark up support and resistance zones from 3 months prior. I also mark up fresh non tapped into supply and demand zones. These zones help me determine where price will go giving myself potential take profit levels and places where price may reverse. 2I mark trendline channels on the 1 hour and 15 minute timeframe to help me hop on the trend with points i can also enter at. Sometimes I have smaller 15 minute trendline channels inside the 1 hour trendline channels 3When price hits a level/trendline point I go down to the 5 minute timeframe and wait for a break of market structure or continuation of market structure in the same direction to enter the trade. 4I usually always have a RR of 2-2.5 as I attempt to put my stop loss over/under price action points such as wicks. 5I place my take profit at some type of horizontal level such as the next support/resistance level or a supply and demand level. I formerly placed it at the the point of the top trendline.
I currently don’t trade in any specific session or trade a specific pair.
I’ve upgraded this strategy going from just trendline channels and setting my TP and SL in respect to the top trendline and the swing low/high respectively. I also moved from using moving average 9/21 crossover entry on the lower timeframe to using market structure shifts on the lower timeframe.
I plan to introduce volume to help determine fake breakouts of levels.
Here are some pictures of my setups.
if you have any advice for my strategy or anything i can add/drop please do tell, thank you!
Almost all of it seems very logical and sensible, though.
Personally, I agree with Truncated’s comment above about your R:R. My guess is that reducing your R:R would actually increase your profit (which tends to be true for many retail traders).
Volume is not available for spot forex/CFD’s. Don’t imagine that the “volume” figures a CFD “broker” can provide is actual market volume, or closely related to it! The only “volume” figure a “broker” might give you, or use in calculating an indicator such as MFI which requires volume inputs, is their own volume, simply because they have nothing else to give you as your “trades” are not in an actual market at all and no currencies are changing hands.
U keeping it too difficult bfor yourself, why adding volume, the best strategy are the clearest strategy, it doesn’t have to be complicated to work, I currently use 4h and 1h for my analysis along my daily lag or direction, that 15 mins trendline will cost u as it’s is too noisy. Make it simple.
The strategy looks good, but a few comments which may help to clarify:
1 If you are using 1 hour timeframe and 5 minute for entry signal, it is not obvious whether you are entering with the trend or potentially against the trend if the 5 minute direction disagrees with the one hour direction.
2 You have stated you intend to set a TP at RR of 2-2.5 but you have not stated what your stake is as a % of your bank. Does your strategy include a maximum total live trade amount as a percentage of your bank (eg 1% or 2%)?
3 Have you back tested how many past events have resulted in a 2-2.5 RR result compared with those that have less than a 2R result within the trade timeframe of your strategy (presumably a day trading timeframe). In my experience, it is “very few”, which leads to the next question
4 In the event your trade does not reach your TP, and the trade oscillates between entry and stop loss, do you have a maximum duration of trade after which you cut your losses and decide to exit the trade, or do you intend to just let it run until it either achieves your TP or you lose your 1R by price reaching the stop loss value?
5 Does your strategy link your SL (pips from entry to SL) value to the ATR? I would suggest ensuring that your SL has sufficient range not to get stopped out when ATR is a similar value or less than your SL PIPS. If you are setting your TP at 2-2,5RR, you have an expectation to win more than one in three of your trades. Does any backtesting, manual or otherwise, indicate that this is the case for past theoretical entries, or is your SL too tight which will increase the likelihood of your trade concluding as a loss?
As for me, my honest opinion is to backtest the strategy and see what results it yields. You can get 1,000 different replies, but the bottom line is what results are you getting from the charts? What are the results after 20 trades?
Does it work? If not, why? If it does, when does it work?
Then forward test it. If it doesn’t work, find out why. You’ll find all your answers in your analysis. Of course, you can get different ideas from people here. People here will point out things that you may have missed.
But backtesting and analysing your charts is a top priority, in my opinion.
