Hi all
I am new to systematic FX trading.
I have tried different trading strategies in python. I tried momentum, breakout, fade breakout strategies with entry and stop loss rules. Then I backtested on many parameters (minimum hold, ATR, look back window etc) and my results are either not convincing enough or too unrealistic to be trusted (i;e, super high sharpe ratio). All my strategies were run on
EUR_USD, GBP_USD, EUR_GBP.
I am kind of confused. My work has been mainly statistical studying the H4, order/position book and H1 Oanda data. Yet I feel that my understanding of market dynamics is still poor as I rely only on statistics and market micro-structure. H1 data is more noisy than H4 data which is not encouraging and will probably push me to use more advanced techniques (which is a no go zone for me).
I am not here to complain about the difficulty of the exercise but I d like to hear some of the experienced traders about how they should go about this? Is it ok to rely only on H4 data to backtest strategies? What is the ideal minimum holding period for someone looking for only few profitable trades per month ?
Can aggressive stop losses help or shall I let the trades go for longer? What can help me gain more intuition and structure my work?
Thank you for your advice
Regards