This strategy is based on identifying overbought &/or oversold
moments for the market entry. To do so, momentum indicators like RSI
and ADX are used. At the same time, it is verified that the market in
the longterm and medium term has a compatible trend with the entry
type (BULL/BEAR), for this purpose different moving averages are used
with varying timeframes (1 hour, 4 hours & daily). The
strategy is
multi-instrument, this version is using the EUR/JPY & EUR/USD
pairs (plus GBP/USD in the second strategy, see below), but future
versions could use more & different pairs. The strategy uses
money
management (MM) to determine the trade volume, but allows the entry of
a fixed volume thus disabling money management. The strategy is
selective in terms of the time to trade. This version includes a
second strategy inside the main strategy, it is a trend strategy on
the GBPUSD pair and uses Moving avg (H1), RSI and the last candles to
trade following the trend, it trade only when the main strategy does
not trade, is symmetric of course, but is very strict and could do
very little or even no trades during the month, the SL:TP ratio of
this strategy is 9:5. Finally, the strategy also uses a martingale to
try to recover from a loss and Spread Control to avoid high spreads
market conditions. The StopLoss::TakeProfit ratio of the main strategy
is 9:1 except if the martingale is used. In this version MM is used
and the volume of each trade is calculated as follows:
(initialEquity*riskAux1/Equity+dayOfMonth+1)*risk1Var+risk2Var. In
this version riskAux1 == 2.0, risk1Var == 0.1875 and risk2Var == 2.25.
The strategy was designed exclusively for the Dukascopy Strategy
Contest in November 2019, so will not work correctly in a different
period. Remember that the use of a copied strategy violates the (3.5)
section of the official contest rules (RCR). Never use a
"contest" strategy in a live
"real" account.