Notable numbers strategy - MT4/MT5 resources
We all know about the "round number" mental level. Based on this an EA was created to test some similar ideas. But this strategy can be traded manually. Use EA for analysis to ensure this approach works.
The EA not only analyzes integers like 1.2300, 1.2200 or 1.2000, but can also replace "0" with any number like 1.2355, 1.2255, 1.2555 - why only "0" is considered...?
Therefore a general method was developed to set what number will be used as a "noteworthy number" and how many digits (from 2 to 4).
Then the EURUSD was shot. Backtested 2013 to 2020. Then test forward 2020 to present - to rule out over-optimization.
What I get is that "0" is not the best choice for EURUSD, but "6" is the winner.. many entries are "666" (if it is 5 digits)... see here:
OK, the entry rules for this strategy.
Symbol: EURUSD
For example, our noteworthy special is 1.37 66
Buy when the high/low of the previous 2 days is above our significant price level "66" so that the price reaches "66" from above:
Sell when the previous 2 days high/low price is below our significant price level of "66", so the price reaches "66" from below:
You can set a stop loss of 70 pips and a take profit of 110 pips. I prefer to use percentage of TP/SL target, but this only works for EA. I used SL 0.5% and TP 0.8% for this test.
Here's what fairness looks like in backtesting/forward testing:
Attached here are the backtests from 2013 to 2020:
Attached here are forward-looking tests for 2020-2022. EA doesn't know anything about the future - so this is not over-optimizing:
You can trade during the following time periods: from 1 hour after the London market opens to 1 hour after the New York market opens.
Or better not trade this..just write what I found. To me, research is interesting.
Edited on June 23, 2023:
This policy entry must be checked only on the M5 cylindrical opening. See this article explaining my error in the previous entry description.
Edited on September 15, 2023:
The free signals page for this strategy is right here.
Editor: 2024-06-05:
Since MT4 stopped supporting EA signals, the signals are currently no longer available. The Signals web page has been redesigned for a different purpose. BTW.. the strategy has been working. See the latest results in this article.
The EA not only analyzes integers like 1.2300, 1.2200 or 1.2000, but can also replace "0" with any number like 1.2355, 1.2255, 1.2555 - why only "0" is considered...?
Therefore a general method was developed to set what number will be used as a "noteworthy number" and how many digits (from 2 to 4).
Then the EURUSD was shot. Backtested 2013 to 2020. Then test forward 2020 to present - to rule out over-optimization.
What I get is that "0" is not the best choice for EURUSD, but "6" is the winner.. many entries are "666" (if it is 5 digits)... see here:
OK, the entry rules for this strategy.
Symbol: EURUSD
For example, our noteworthy special is 1.37 66
Buy when the high/low of the previous 2 days is above our significant price level "66" so that the price reaches "66" from above:
Sell when the previous 2 days high/low price is below our significant price level of "66", so the price reaches "66" from below:
You can set a stop loss of 70 pips and a take profit of 110 pips. I prefer to use percentage of TP/SL target, but this only works for EA. I used SL 0.5% and TP 0.8% for this test.
Here's what fairness looks like in backtesting/forward testing:
Attached here are the backtests from 2013 to 2020:
Attached here are forward-looking tests for 2020-2022. EA doesn't know anything about the future - so this is not over-optimizing:
You can trade during the following time periods: from 1 hour after the London market opens to 1 hour after the New York market opens.
Or better not trade this..just write what I found. To me, research is interesting.
Edited on June 23, 2023:
This policy entry must be checked only on the M5 cylindrical opening. See this article explaining my error in the previous entry description.
Edited on September 15, 2023:
The free signals page for this strategy is right here.
Editor: 2024-06-05:
Since MT4 stopped supporting EA signals, the signals are currently no longer available. The Signals web page has been redesigned for a different purpose. BTW.. the strategy has been working. See the latest results in this article.
























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