gbp/jpy Strength Indicator strategy backtest (gbp/jpy Strength Indicator strategy Back)

This post will be dedicated to back-testing the Auslanco-GBP/JPY Strength Indicator strategy according to my own rules. I will eventually test this strategy on my real account. I also try to analyze trades in real time when my schedule allows.

First of all, I would like to thank Auslanco for his outstanding contribution to this forum. I will be using auslanco's strength indicator strategy and my own rules.

my chart

http://www.fileden.com/files/2006/7/30/148326/aus.jpg

Based on the 1-hour chart above, a summary of my understanding: Use the 4-hour chart to determine a bearish or bullish trend using the QQE strength indicator. If green is below purple, the trend is bearish. If green is above purple, the trend is bullish. The red line associated with the QQE SI is not significant on the 4 hour chart... all we are looking for is a crossover indicating a change in trend. However, we can use the angle of the lines to determine the strength of the trend. If the trend on the daily chart is consistent with the 4 hour and 1 hour, then we are looking for 300 points. If only 4 hours and 1 hour line up, we are looking at 200 points. In a bullish trade, the stop loss is always 100 pips below the price . The green line on the 1 hour QQE SI crosses the red 50 line. For bearish trades, the opposite is true.

After establishing a bullish trend on the 4-hour chart, we need to ensure that the 4-hour candle has formed above the Gann High-Low Activation Line shown in gold above. If the 4 hour candle directly above the QQE green and purple lines (forming a bullish trend) has not formed above the Gann line, we will wait for the next 4 hour candle to form above and then continue to use the 1 hour chart for confirmation.

On the 1 hour chart, we first confirm the bullish trend by ensuring that the green line on the QQE indicator has crossed the purple line and that the green line has crossed the red 50 line. The exact point where the green line crosses the red line in a bullish trend is where we would buy. Before we start a buy trade, we need to make sure that the 1 hour candle has crossed the Gann line. Our entry point will be the beginning of the second (confirmation) candle after the crossover candle closes. The closer our entry is to the 1 hour 5 hourly moving average, the better the entry is.

rule:

Since I can no longer update post 2, I will update the rules for this post from now on.

Each trade is traded in 2 mini lots and the account balance is 5k. When the profit is 100 points, stop loss is 100 points, set 90 points TSL or manually close the position when the 1-hour QQE trend changes. Whenever an entry is more than 20 pips from the 1 hour 5 hourly moving average, enter a ½ position or 1 mini lot. Enter full position when @5SMA is correct. I will enter up to 2 positions for each 4 hour trend change. I will backtest this strategy in about a year and post my results here.