It’s my first time posting on here so I’d love any feedback that I can get!
To give a little background - I’m currently in my first month of demo trading. I finished the babypips course a month or so ago, and have been reading forums, books, and watching youtube videos as much as I can. It’s been a tough start getting used to everything, but after combining a lot of what I’ve learned, here’s a strategy that I’ll be testing this week for the first time. I’ve been backtesting it a lot and it’s been going very well so far.
There seems to be a lot to it, but it all makes sense in my head. It’s not finalized, I’m still working out what I need to add/delete from it. As of now, I’m not using as much price action/significant levels as I think I can in the near future, and I haven’t added Fib levels to it at all yet. Let me know what you guys think I should add/delete!
The strategy (in an uptrend for example): I first start off with the Daily chart to get an idea on what the overall market movement is looking like. Then I drop down to the 1hr chart to draw any significant levels that I see necessary. From there, I drop to the 15 to look for entries. I use the ichimoku indicator as my primary indicator. When I see price break above the komu and the kijun (and chikou above price action), I look for a bullish engulfing candle on or near the kijun to enter. I also use the stochastic as a complimentary indicator to reassure my entry - although while backtesting, the ichimoku seems to be much more important. So far while backtesting, a 1:1 risk/reward seems to pan out nicely, although it’s not optimal… I’m still working on exits as I’ve found plenty that ride up to 3:1 and sometimes more (maybe this is where significant levels/fibonacci’s can come into play). I’m also testing best spots for S/L placement but below the recent swing low seems to be a good spot as price hasn’t reversed much during my back testing.
I feel like I’m missing something, but that’s the jist of it. I’d love to hear your thoughts or if any of you have a similar strategy. The Ichimoku indicator mixed with the engulfing candle seems to be the most important parts of this strategy, but like I said, I’m still working on it.
Thanks for reading, I hope to hear from some of you!