The strategy trades the GBPUSD. There are 2 types of orders: 1st entry
orders, ‘Orders Type A’, for which the trade amount is calculated
according to the formula: ‘Default Trade Amount’ x ‘Equity’ /
100000 ('Default Trade Amount' = 0.25 million); and repositioning
orders, ‘Orders Type B’, for which the trade amount is calculated
according to the formula = ‘Previous Closed Order Trade Amount’ x
3.
The signals generated by the algorithm for ‘Orders Type A’ follow
the Stochastic Oscillator (STOCH) assigned with a 1-hour period. These
orders are traded from Monday to Thursday from 6 AM to 3 PM. To open a
sell ‘Order Type A’, the following conditions have to verify:
STOCH(shift_0) equal or higher than 80; STOCH(shift_1) equal or higher
than 60; STOCH(shift_2) equal or higher than 40; the spread equal or
lower than 2 pips; the difference between the daily high and the daily
low is equal or higher than 45 pips; the gap between two consecutive
orders is equal or higher than 60 minutes. To open a buy ‘Order Type
A’, the following conditions have to verify: STOCH(shift_0) equal or
lower than 20; STOCH(shift_1) equal or lower than 40; STOCH(shift_2)
equal or lower than 60; the spread equal or lower than 2 pips; the
difference between the daily high and the daily low is equal or higher
than 45 pips; the gap between two consecutive orders is equal or
higher than 60 minutes. The ‘Orders Type A’ have the following
assignments: take profit @ 31 pips; stop loss @ 1 pip.
An ‘Order Type B’ is opened when the previously closed order was
non-profitable. The opening of ‘Orders Type B’ can be executed
during the full week schedule except for Fridays after 5 PM. The
algorithm settings allow for a streak of 3 consecutive ‘Orders Type
B’. The 1st and 2nd ‘Orders Type B’ have the following
assignments: take profit @ 31 pips; stop loss @ 29 pips. The 3rd
‘Order Type B’ has the following assignments: take profit @ 31
pips; stop loss @ 60 pips. If the 3rd ‘Order Type B’ is closed
under the trigger of the stop loss assignment, the algorithm reboots
and the next order is an ‘Order Type A’.
If there is an opened order, the algorithm closes that order if: the
‘Use Of Leverage’ rises above 160%; on Fridays after 5 PM.