This multi-currency strategy takes a contrarian approach to the
generally accepted view that when a candle wicks over an important SMA
then a price rejection has taken place, therefore the strategy goes
the opposite way into a "liquidity grab" area. I consider the hourly
SMA 33 used in version 1 as important as the 50, 100 and 200 SMA's.
However, backtesting has shown that the SMA 200 used in version 2
performs better in the last 10 days of the month. The pairs A/J, N/J,
C/J are running on the hourly timeframe while E/U is scalped on the 10
min. As the E/U is on a timeframe 6 times less only a 2 pip SL and TP
are executed with the lot size accordingly reduced as these trades are
just scalps.
So, for the A/J, N/J and C/J pairs which run on the hourly IF the last
sh1 candle is red and closes above sh1 SMA 33 with a wick over the SMA
33 (with a candle low below this SMA 33) then a SELL at open of next
candle is executed with 20 lots, SL 50 ,TP 15 and trailing step 10
pips. There is symmetrical action for BUY where a green candle closes
below the SMA 33 and wicks over it (with a candle high above the SMA
33). On the other side, E/U is scalped on the 10 minute timeframe,
where IF the last sh1 candle is red and closes above the sh1 SMA 200
with a wick over it AND sh1 SMA 100 > SMA 200 then a SELL is executed
at the open of the next candle with 1/2 lot and a 2 pip TP and SL.
There is symmetrical action for a BUY where a green candle wicks over
the SMA 200.
The strategy details are as follows: For pairs A/J, N/J and C/J IF
All positions = 0 AND IF hourly sh2 candle close – hourly sh1
candle close > 0 AND IF hourly sh1 candle close > sh1 SMA 33 AND
IF hourly sh1 candle low < sh1 SMA 33 then SELL 20 lots with TP 15,
SL 50 and trailing step 10 pips. Symmetrical action for a BUY. For
E/U IF All positions = 0 AND IF 10 min sh2 candle close – 10 min
sh1 candle close > 0 AND IF 10 min sh1 candle close > sh1 SMA 200
AND IF 10 min sh1 candle low < sh1 SMA 200 AND sh1 SMA 100 > SMA
200 then SELL ½ lot with TP and SL 2 pips. Symmetrical action for a
BUY.
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