Weekly Range Method | Foreign Exchange EA Download- MT4/MT5 Resources
I wanted to devise a simple way for my ten year old son to trade that didn't take too much time. I've done a visual backtest on it and it seems to work most weeks, otherwise no transactions are generated. I wonder if it's too mechanical to work long term. I'd love to get some feedback, any suggestions for improvements would be greatly appreciated
<?xml:namespace-prefix=st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1lace><st1lacename>weekly</st1lacename> <st1lacetype>scope</st1lacetype></st1lace> Method – Version 1
Tested in GBP/USD.
After the market closes for the week, mark the past 2 weekly ranges (high/low) and the midpoint of the most recent weekly range (I call this the weekly midpoint).
Your directional bias is determined by comparing these weekly ranges
FADE: If the range of the most recent week is greater than the range of the previous week, then consider fading the direction of the most recent week. You can trade like this:
If last week was bearish, buy at Friday's mid-level, set your limit at the mid-week value, and set your stop at the weekly high.
If last week was bullish, sell at Friday's mid, set limit at weekly mid, and set stop at weekly low
Trend: If the range of the latest week is smaller than the range of the previous week, then trade in the direction of the previous week. You can trade like this:
If last week was bullish, buy at the weekly midpoint, set your limit at the weekly high, and set your stop at the weekly low.
If last week was bearish, sell at the weekly midpoint, set your limit at the weekly low, and set your stop at the weekly high. Don't chase the price. If it doesn't pull back to the median, let it go and don't trade. The idea of trend trading is to enter the trade on a pullback and avoid a choppy trade.
The whole method is just one sentence: if last week was an expansion week, trade from the outside; if last week was a contraction week, trade from the inside.
I hope this makes sense. I'll give an example if anyone is interested.
Ken
<?xml:namespace prefix= on ns = "urn:schemas-microsoft-com:office:office" /><o> </o>
<?xml:namespace-prefix=st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1lace><st1lacename>weekly</st1lacename> <st1lacetype>scope</st1lacetype></st1lace> Method – Version 1
Tested in GBP/USD.
After the market closes for the week, mark the past 2 weekly ranges (high/low) and the midpoint of the most recent weekly range (I call this the weekly midpoint).
Your directional bias is determined by comparing these weekly ranges
FADE: If the range of the most recent week is greater than the range of the previous week, then consider fading the direction of the most recent week. You can trade like this:
If last week was bearish, buy at Friday's mid-level, set your limit at the mid-week value, and set your stop at the weekly high.
If last week was bullish, sell at Friday's mid, set limit at weekly mid, and set stop at weekly low
Trend: If the range of the latest week is smaller than the range of the previous week, then trade in the direction of the previous week. You can trade like this:
If last week was bullish, buy at the weekly midpoint, set your limit at the weekly high, and set your stop at the weekly low.
If last week was bearish, sell at the weekly midpoint, set your limit at the weekly low, and set your stop at the weekly high. Don't chase the price. If it doesn't pull back to the median, let it go and don't trade. The idea of trend trading is to enter the trade on a pullback and avoid a choppy trade.
The whole method is just one sentence: if last week was an expansion week, trade from the outside; if last week was a contraction week, trade from the inside.
I hope this makes sense. I'll give an example if anyone is interested.
Ken
<?xml:namespace prefix= on ns = "urn:schemas-microsoft-com:office:office" /><o> </o>
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