Trading logic: Checks hourly the position of SMA (n=3) and SMA
(n=20).
The strategy open a position when SMA3 crosses SMA20 only if MACD
confirms that tendency. If the position is long, it will be closed
when a short signal is detected (and will open a shot position) and
viceversa. This strategy intends to trade with the trend (at least it
tries, but we know markets behave randomly). - Description of
indicators: SMA3 is a fast indicator of tendency. If SMA3 is higher
than SMA20 at a certain candle and it was lower than SMA20 at the
previous one, we can detect it as a change of tendency (now it will
go
up!) and it might be the right moment to jump into the trend. Same
happens if we detect the opposite signal, it might be time to close
our position and open a contrary one. Fiability increases by
confirming every change of trend detected with MACD Chosen settings:
Operates on EUR/USD, there is no explanation for this election, any
pair should work the same good (or the same bad). Time selected is
hourly, since we want to have at least 20 trades by the end of the
month but we don't want to have infinite nomber of trades (spread
comission will make us lose consistently by the end of the month). No
TP, No SL, has been set: the strategy already has an inteligent
system
to close the trades (This is optimistic to say). Volume: The strategy
trades a fix volume of 7 lots. This implies a very high risk, but in
back testing it proved to be able to win the contest in serveral
months: it may be the same in the future. Chances of loosing
everything with this strategy is hight, however chance of being
between the 10 first position always exists. source
darkvothe