Great concept (and proof of concept with EA backtests and myfxbook forward tests).
I like simplicity, so one pair, no indicators is very attractive.
I’m currently testing a simpler version of it, an idea brought up earlier here – the single 1:3RR trade.
So I’m manually setting 1 long pending order and 1 short pending order (with same specs +1pip on entry, -5pip SL, 15pip TP).
One more thing I’m doing is setting the order only before Frankfurt/London open (since a small recent sample I manually backtested showed it cutting out some false break entries during the Asian open).
The other thing I’m doing is using a betting sequence for increasing lot size after losses. It’s conservative, given the trades are 1:3RR and resets after 7 steps (if no win happens before that).
1-1-1-1.5-2-2.5-3.5 (7 steps)
If progression wins at any step, there is profit. Lose all 7 steps, -12.5%.
So need only 1 in 7 wins for profit else sustain a 12.5% loss.
Such a string of losses should be rare, but even if it does show up, all the wins preceding hopefully will give profit more than 12.5%. Very likely with 1:3RR trades.
(Note, I treat longs and shorts as separate sequences).
Anyways, I can’t code EAs, so just speculating ideas built from here combined with my small sample of manual backtests. I started two days now, 1 win, 1 loss (-1+3=2 profit).
Let’s see how things play out.
The sequence again with cumulative losses/wins and compared to flat betting. One could go on with the sequence after 7 instead of resetting if bigger appetite for risk.
