The strategy trades GBPUSD. There are 2 types of orders: 1st entry
orders, ‘Order Type A’, for which the trade amount is calculated
according to the formula: ‘Default Trade Amount’ x ‘Equity’ /
100000 ('Default Trade Amount' = 0.25 million); and repositioning
orders, ‘Order Type B’, for which the trade amount is calculated
according to the formula = ‘Previous Closed Order Trade Amount’ x
3. The signals generated by the algorithm for an ‘Order Type A’
follow the Stochastic Oscillator (STOCH) assigned with a 1-hour
period. These orders are traded from Monday to Thursday from 6 AM to
3
PM. To open a sell ‘Order Type A’, the following conditions have
to verify: STOCH(shift_0) is equal or higher than 80; STOCH(shift_1)
is equal or higher than 70; STOCH(shift_2) is equal or higher than
60;
the spread is equal or lower than 2 pips; the difference between the
daily high and the daily low is equal or higher than 30 pips; the gap
between two consecutive orders is equal or higher than 60 minutes. To
open a buy ‘Order Type A’, the following conditions have to
verify: STOCH(shift_0) is equal or lower than 20; STOCH(shift_1) is
equal or lower than 30; STOCH(shift_2) is equal or lower than 40; the
spread is equal or lower than 2 pips; the difference between the
daily
high and the daily low is equal or higher than 30 pips; the gap
between two consecutive orders is equal or higher than 60 minutes. An
‘Order Type A’ has the following assignments: take profit @ 30
pips; stop loss @ 1 pip. An ‘Order Type B’ is opened when the
previously closed order was non-profitable. The opening of ‘Order
Type B’ can be executed during the full week schedule except for
Fridays after 5 PM. The algorithm settings allow for a streak of 3
consecutive ‘Order Type B’. The 1st and 2nd ‘Order Type B’
have the following assignments: take profit @ 30 pips; stop loss @ 30
pips. The 3rd ‘Order Type B’ has the following assignments: take
profit @ 30 pips; stop loss @ 60 pips. If the 3rd ‘Order Type B’
is closed under the trigger of the stop loss assignment, the
algorithm
reboots and the next order is an ‘Order Type A’. If there is an
opened order, the algorithm closes that order if: the ‘Use Of
Leverage’ rises above 175%; on Fridays after 5 PM.
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