If you see the history there will be continuous loss for 2-3 days and also there will be continuous profit for 2-3 days as well.
There will be day where 1 profit and 2 loss and also 2 profit and 1 loss.
In short, like any other system it does not give 80-90% winning ratio.
Winning ratio here is very less but still over a period of time it will make profit and accounts will be in green.
winning ratio so far is 43% for both long and short order
average winning is 10.73 pips and losing is 5 pips
All we can control is risk and let the system continue to work
Hello, im a happy user of this method, my broker is pepperstone. Spread for gbp usd is variable from 0.4 to 1.4
I create an EA that only open one sell stop order and one buy stop order 1 pip over past day candle.
The value for stop loss is 6 pips , for first take profit is 7 pips, for second tp is 12, for third tp is 17 pips.
I open orders of 0.2 lots and because i open only one order and not three like in the original method my Ea close partial lots. When 1st tp hit Ea close 0.12, second tp hit close 0.04, third tp hit 0.04.
I not modify stop loss or take profit because slippage ( pepperstone is near very precise, sometime positive slippage) also because i fear that the levels are too extended and maybe i cannot reach them
My only question is: because my broker offer only variables spread i cannot know when ask line hit pending order and sometime ask line hit but real price not hit (in the case of buy) and order is open same but maybe retrace and hit stop loss. (Maybe later the order would been a winning if spread had not expanded before)
It is pretty good broker. Faster execution and ASIC regulated.
No hassle in withdrawal and deposits.
I recommended standard account.
It does not have demo in standard account that why it is ECN.
I am personally using standard account with my EA.
I hava a question. as you mentioned on first post we leave friday candle. so which candle high/low value we took for monday trades. currently i coded no trades on monday.
UPDATE:
Hi Vijay,
Can you answer above question.
I really impressed your strategy is simple and effective.
I use 3 orders with s/l as 5-6pip for all.
TP as 10,20,30pip.
When first order 10pip reached remain order TP same but s/l moved to breakeven.
when second order 20pip reached 3rd order s/l moved to 10pip profit.
whenever you are backtesting EA you need to download data and modelling quality should be 99%.
anything less than that is not considerable.
Also you need to see what happen if there is a spike and got slippage of few pips.
Does Ea is able to manage it ?
Even though it is only on daily timeframe, you should always run the strategy tester under the āEvery Tickā model as it can make a VERY BIG difference in your results. Also make sure you have M1 Data for the entire period under review otherwise it will be misleading.
If you do not have M1 Data or do not use āEvery Tickā, your test results could be way off the reality of things. Also, remember to test both against the average spread and maximum spread to get a more accurate overview of results.
Actually, I have been back testing this strategy with having the pending orders never expire and is way more profitable than when the pending orders expire at the end of the day. Also the drawdown remains approximately the same for both scenarios.
However, it is also more profitable that opened orders be closed at the end of the day. Leaving opened (not pending) orders until it hits one of the stops is less profitable.
Another thing I found is that it is more profitable to only have one order that you ride out with a trailing stop, than 3 orders with fixed stops. Even though the single order strategy has a lower win rate, it has a higher profit factor and expectancy as well, but a slightly higher drawdown.
Also, more profitable is making the stop size a function/ratio of the ATR instead of a fixed value.
