My strategy is designed to catch TRENDS an works with simple
indicators : ATR (average true range ) and SMA (simple moving
average)
ATR used is 2 periods and 48 periods .Sma used is 50 period and 150
periods
Time frame is 5 minutes .
We are using sma to open trades and atr to close trades
OPEN TRADES : if sma 50 is above sma 150 then buy , if sma 50 is
below
sma 150 then sell
CLOSE TRADES : if atr 2 is above atr 48 then close the current open
trades .
The logic is if it's not monday or friday then open a trade with the
sma if and only if there is not an open trade .If there is and open
trade then we check ATR to close trades if necesseray
indicators description :Sma is used because its a simple and
efficient way to follow trends, ATR is used to adjust next entry to
"price action" if a candle have an atr greater in the short term (2)
than in the long term (48 ) it menas that something is happening
(climax in the trend ) , its better to close the trade to breathe 5
mn
and after that a new trade will be opened in the trend with new
TakeProfit and StopLoss (closer of the recent price action )
I added other calculations such as "get time unit " , it will permit
trading only if the day is not monday or friday , because during
those periods we can have considerable lag on simplemoving average
and
it can causes many false signals .
I also added a money management unit for the contest in order to
maximise profits if the strategy is successful : if equity is below
233.000$ the trade with 5 million size if it's above then trade with
10 millions size
settings : 5 mn time frame in order to trade quickly after a closed
trade .GBPJPY is the pair traded because it's probably the most
volatil pair on forex market
This description is for the last version of my strategy ( version 10
)
, in the previous (version 1 to 9) ATR was used to enter a trade in
combiantion with sma but i removed this parameter because it stayed a
long time without opened trades ...
version 11 update : atr value 3 and 66 instead of 2 and 48//////sma
value 10 and 13 instead of 50/150
version 14 : change instrument from gbpjpy to usdjpy , chnage stop
loss from 100 to 888, change tp from 100 to 10