Buy/Sell Line for Daily Chart - MT4/MT5 Resources
I have been looking for a daily chart based system as I have a full time job and can only view the charts 2-3 times a day max. I read the post titled "Buy Sell Line Trading" by 60Minuteman and liked the idea of using price action to enter. Although his post was not primarily focused on the daily chart, I did some backtesting of the EUR/USD daily chart over the past 3.5 years and found it to be worth paying attention to.
Here are the backtest results I used from September 2009 to the end of February 2013 using the Iron FX demo data (since they don't have Sunday candles):
109 transactions
45 wins
22 Breakeven
42 Loss take profit is always 2 times the stop loss amount
7,074 points
48R (meaning its total return is 48 times the risk per trade)
Here are my trading rules, which are slightly different than those of the 60 Minute Man:
If the candle closes above the 50 Simple Moving Average and the 50SMA value is above the value of 4 candles, look for buying opportunities.
A signal candle is a candle whose closing price is higher than the opening price of the previous candle, and the opening price of the previous candle must be equal to or higher than its closing price.
Another type of signal candle is a candle that has the lowest price of the last 3 completed candles and a closing price 25% above the candle's height. If the candle's close is not 25% above, but the next candle's close is 25% above, that candle becomes a signal candle.
Set a buy order for 0.1 pips plus the spread above the high of the signal candle.
If the order does not trigger at the close of the day, the order is canceled.
The stop loss will be 0.1 pips below the low of the signal candle.
Once the price has increased by the same number of pips as you risked, move your stop loss to the breakeven point.
Take profit is always 2 times the stop loss amount.
For selling, the rules are the same and vice versa.
I didn't use any S/R lines or any judgment because I wanted the bias in the backtest to be as small as possible.
The main reason I started this thread was to find people who might be interested in making an EA for this system for backtesting purposes. I don't have much time for backtesting because I work a lot and do it manually. I would like to know if this system is profitable for other currency pairs. I'll attach a spreadsheet of results for your reference. I'll try to post some sample pictures later.
Thanks.
Here are the backtest results I used from September 2009 to the end of February 2013 using the Iron FX demo data (since they don't have Sunday candles):
109 transactions
45 wins
22 Breakeven
42 Loss take profit is always 2 times the stop loss amount
7,074 points
48R (meaning its total return is 48 times the risk per trade)
Here are my trading rules, which are slightly different than those of the 60 Minute Man:
If the candle closes above the 50 Simple Moving Average and the 50SMA value is above the value of 4 candles, look for buying opportunities.
A signal candle is a candle whose closing price is higher than the opening price of the previous candle, and the opening price of the previous candle must be equal to or higher than its closing price.
Another type of signal candle is a candle that has the lowest price of the last 3 completed candles and a closing price 25% above the candle's height. If the candle's close is not 25% above, but the next candle's close is 25% above, that candle becomes a signal candle.
Set a buy order for 0.1 pips plus the spread above the high of the signal candle.
If the order does not trigger at the close of the day, the order is canceled.
The stop loss will be 0.1 pips below the low of the signal candle.
Once the price has increased by the same number of pips as you risked, move your stop loss to the breakeven point.
Take profit is always 2 times the stop loss amount.
For selling, the rules are the same and vice versa.
I didn't use any S/R lines or any judgment because I wanted the bias in the backtest to be as small as possible.
The main reason I started this thread was to find people who might be interested in making an EA for this system for backtesting purposes. I don't have much time for backtesting because I work a lot and do it manually. I would like to know if this system is profitable for other currency pairs. I'll attach a spreadsheet of results for your reference. I'll try to post some sample pictures later.
Thanks.
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