This System Has Teeth | Forex Indicator Download - MT4/MT5 Resources

I came up with a strategy that I thought had some potential. I'm looking for feedback and ideas, so let's stay positive. It performed very well in my manual backtests. I made an EA request to Steve Hopwood, but I knew he was busy. Okay, I'll keep things as simple as possible.

- 4H chart (I like this TF)
- Indicator - MACD (12,26,9) works on closing prices and Stoch. (5,3,3) The price field is set to close/close. I've been using the signal bar on stoch.
- When Stoch's MACD histogram histogram is above 0, look for the buy trigger bar (will define what is below the trigger bar). The value is 40 or lower. The sell trigger line is when the histogram is below 0 and the Stoch is equal to or above 60. Therefore, most of the time you are buying or selling on price pullbacks.
Trigger Bar Definition - Look for candles with higher highs and higher lows (for buy trades) with a relatively short total length and a body less than 1/2 of the total length of the candle. It doesn't matter what color the candle is. I use up to 50 points. The length is 35 pips for more volatile currency pairs (GBP/JPY, GBP/CHF, EUR/AUD, etc.) and 35 pips for less volatile currency pairs. The shorter the candle, the less risk you take on the trade.

Enter a trade to buy 1 pip above the trigger candle. If the price does not break the high of the trigger candle within 3 candles, look for a new trigger candle. If the histogram goes to the other side of zero before breaking out of the high, don't trade. As long as the Stoch is at or below 40 at the close of the triggered candle, it's ok if the Stoch moves above 40 (buy) before you enter. See chart below

Risk/reward is key. Set the stop loss to the low of the buy trigger candle and the stop loss to the high of the sell trigger candle. When 1:1 risk/reward is achieved, move your stop to BE. When 1:3 RR is reached, set the stop to 1:2 RR. When 1:4 RR is reached, set the stop to 1:3. When you reach 1:5, set the stop to 1:4 and so on.
Okay, now for an example. More examples will be posted later.

I'm testing the modified input method - post #49
Many thanks to Steve Hopwood. His EA is in post #65