Total Pip movement strategy

Beginner Questions
1

Hi to all,
I found and I’m busy testing a strategy and would love to hear your thought on it. May someone will backtest it for us! (For the life of me I can’t find the forum I found it on, but all the credit should go to the inventor - who ever he/she might be).
My results are pretty good thus far, for a newbie like myself, even impressive. Here it is, and please feel free to comment.
Currency pair: Any, but I’m testing it with eur/gbp, gbp/usd, usd/jpy, chf/jpy, eur/usd.
Chart: 1 hour
The system: Every night at the same time (21:00 cat for me) I open the chart, determine the highest high and lowest low for a period of 24 hours, and the closed price of the last candle. I then determine the total movement for the period (hh - ll) and take 25% of the total movement.
By adding the 25% value to the closed price I determine my buy order, and the same for the sell order, only closed price minus 25% value.
I then set my tp at my order price plus/minus (buy/sell) the same 25% value. The sl is set at the same price as the opposite order, meaning my sl order for buy is set at the price my sell order kick in.
I hope it makes sense, but it’s acctually pretty simple maths. The idea is that the market might move nearly the same amount of pips as the day before in any direction, and if it only moves 50% of the previous day- I’ll profit.
If the order hasn’t closed the next day I’ll leave it going until it hits the tp or sl.
I will try and post my daily progress here to create a log for myself.

Ps- I’m running it on a demo account with $500 startup and using 3 lots/trade.

2

Eur/gbp: +190
(been going since 20/11)
Gbp/usd: +176
Usd/jpy: +152
Chf/jpy: +330
Eur/usd: (still going)
Total pips: +848
Account profit: $30

3

I think i got it, so your stoploss is twice your profit target.To maintain profit you have to hit at 75 percent hit rate to remain profitable.If iam reading that correctly.

4

Yes, that is correct. I was thinking of using the closing price as the stop loss, therby reducing the risk:reward to 1:1. I might try it next week, but just for the experience I’ll use the system as is for this week.

5

3 full lots per trade with only $500 startup? :rolleyes:
I know your stop loss varies, but about how much would you loose if you hit one?

6

I suggest that you back-test this system of yours to see how it holds up over longer periods of time than a week.

At 3 lots / trade and $500 equity, that’s $30 / pip. Say the daily range is 100 pips (conservative), your stop loss would be 50 pips away? That’s $1500…

7

you probably got the strategy at edward revy’s (gem of a guy) forum, didn’t you? It was tested for a while and I don’t think it held up. Not very sure though as everyone lost interest.

No harm in trying it out

good luck … :slight_smile: