Trading Logic: My strategy is based on price action based trading
methodology. It uses
GBPJPY pair. It uses EMA (exponential moving average) of 2,4,6,8 and
10 with time period of 10 seconds with shift 1 to gauge the price
action. Trading decision is triggered with a completed 5 minute
candle
occurring between 1 and 8 GMT hours on Monday to Thursday. 5 minute
candle's open and close is analysed to determine whether it is a
BULLISH/BEARISH candle. I BUY when 5 minute candle's open > close
confirming BULLISH bias with it satisfying the conditions of EMA 2>
EMA 4 > EMA 6 > EMA 8 > EMA 10 which confirm BULLISH trend. I SELL
when 5 minute candle's close > open confirming BEARISH bias with it
satisfying the conditions of EMA 2 < EMA 4 < EMA 6 < EMA 8 < EMA 10
which confirm BEARISH trend. Description of indicators: I have used
many customized indicators. I will describe them one by one. I
started
with a customized time based indicator. I wanted my trades to be
opened only during 1 GMT and 8 GMT hours on Monday-Thursday. Using
LAST ASK CANDLE's Candle Time in GETTIMEUNIT function, I have fetched
day of week and hour in variables named - dayoftheweek and hour.
Using
dayoftheweek less than or equal to 5 helped in excluding Friday's
trading day. hour variable was set as greater than or equal to 1 -
along with - less than or equal to 8. So, trading was set during 1
GMT
and 8 GMT hours. In my strategy, I have used 5 minute candle's open
and close along with EMAs of 2,4,6,8 and 10. Shift 1 is used for both
5 minute candle and EMAs. I needed to determine bullish and bearish
candles. So, I used Close > Open for Bullish candles and Open > Close
for
Bearish candles. I have already explained BUY/SELL logic in trading
logic section. Explanation of chosen setting: Lot size = 7 lots,
Slippage = 5 pips, 100 pips is set as Stop Loss and 6 pips is set as
Take Profit. Method of trade volume calculation: Not used.
Changes in Version 2 - Trading Logic and Description of Indicators :
I have added a new strategy and also retained the earlier described
old strategy from
Version
1.This new additional strategy works Monday to Thursday during 9 to
11
GMT hours. It
uses RSI oscillator to gauge OverBought / OverSold conditions.
RSI(14)
on 1 hour time period with shift 1 is used. I BUY when RSI < 30. I
SELL
when RSI >
70. Explanation of chosen setting: Lot size = 25 lots, Slippage = 5
pips, 200 pips is set as Stop Loss and 350 pips is set as Take
Profit.
Method of trade volume calculation: Not used.