This simple strategy trades the USD/JPY pair on the daily timeframe
with 15 lots and is the same as the December winning strategy with
the
difference being that a 16 shift is used instead of the 20 one and
additionally a 2-block volume filter is used. I created the December
strategy without looking at other strategies and it was solely my
invention. Afterwards, when going through some strategies at the
contest
I have come across the shift function, but I have not encountered any
strategies using the shift function on a daily candle - I noticed
that
a 1, 2, 3 shift was used on lower time frames like 5 or 10 minute
candles. Therefore, I believe that this 20 or 16 shift on a daily
candle timeframe is unique and never used before. Between December
and
now I have enhanced the strategy with a specific time period to trade
(window), but that was a mistake as can be seen on the monthly equity
charts. Keeping this strategy simple as it is is much more effective
and so far this month it is doing well, with the only problem being
that it is susceptible to drawdowns as it trades non-stop. So, to
describe it, providing that no position is opened, if the daily
candle
16 days back is green then a buy is triggered with a 60 pip SL and 60
pip TP, consequently if it is red then a sell is triggered with the
same SL and TP. There are 2 filter volume blocks which will block the
trade if the volumes on daily candles going back
36, 26 and 16 days are all equal. The risk to reward ratio is a
decent
1 : 1, so if a trade goes bad it does not grind down into the equity
chart. I wanted this strategy to trade the price bias from the past
as
it is well known that price action from the past repeats. I have been
researching this idea for some time, working with cycles - for
example
1, 2, 3, 4 weeks, 3 months, 6 months, 1 / 7 / 10 years etc. I have
backtested different pairs with this strategy by constantly changing
the shift and RRR, and came up with the U/J pair for a 16-day-back
daily bias with a 1:1 RRR. I spent some time on getting the 60 SL /
TP for U/J, it's almost 1/2% for this pair and works nicely. The
shift
16 on a daily candle in this strategy is unique and never used
before.