Strategy with good average monthly profi
Hello everyone,
So after a while, I came up with a strategy that I developed myself. After trying several trading methods, I realized that the best and safest way was to trade on the daily charts because they are the most informative and not as slow as the weekly or monthly charts.
From 2010 to 2016, I manually tested this strategy with various currencies including EURUSD, AUDCAD, USDCAD, USDJPY and GBP/USD, all of which gave me good results, but the best was EURUSD.
This strategy is based on indicators only, I don't use trading news at all. I use the following indicators:
- Ichimoku (only 26 periods of chikou span, I removed the rest of the information)
- Eiken Ashi Smoothed.
- Lu Yingjian.
- CCI (14).
- MACD (12,26,9).
- Random(5,3,3).
The default stop loss for any entry is 150 pips. I'm risking 5%, which means that if I had a $10K account, I would lose up to $500 per position on this position.
These are the rules for long entries:
1. Chikou transcends price.
2. Heiken Ashi smoothed on blue (at least 2 consecutive candles).
3. Heiken Ashi (ordinary candle) white (at least two candles in a row).
4. CCI is in a bullish trend (up) between 90 degrees and 45 degrees.
5. MACD will either enter a bullish trend or leave a bearish trend.
6. Stochastic red lines are bullish (up).
The opposite is true for short positions. If you enter a trend where your position is stopped out and all signals signal entry again, you simply place a new order in the direction of the trend.
I also use a custom trailing stop to manage my orders, which works like this:
- Price rises 50 pips in my direction -> Stop loss moved to 15 pips profit.
- Price rises 75 pips in my direction -> Stop loss is moved to 25 pips profit (10 pips).
- Price rises 100 pips in my direction -> Stop loss moved to 36 pips profit. (10+1).
- Price rises 125 pips in my direction -> Stop loss moved to 48 pips profit. (10+2).
- Price rises 150 pips in my direction -> Stop loss moved to 61 pips profit. (10+3).
- And so on... until the price gets 1000 pips of profit, then the stop loss is equal to the price profit pips and the position is closed.
As you can see, every 25 pips in my direction, I increase the trailing stop by 11, 12, 13, 14, 15... until the pips gained are equal to the stop and then close the position, but this happens when the profit is about 800 and it doesn't happen very often.
I've attached a screenshot of what happened using my EURUSD strategy for almost a year.
I only trade one position at a time until it goes positive (until the price reaches 50 pips and the stop is moved to 15 pips, then if the price just reverses I will always gain 15 pips). However, when a position is "safe", I will open another position if I receive a signal.
I used this strategy in demos for 4 months and at times I had 5 positive positions and just got ideas. On average, it brings me 15% to 20% profit. But before I go live, I wanted to share it and get some feedback.
I've also attached a template with custom indicators.
Let me know what you all think and if there are any improvements.
It would be great if someone could automate the strategy into an EA.
Please share your results and feedback.
Good luck.
So after a while, I came up with a strategy that I developed myself. After trying several trading methods, I realized that the best and safest way was to trade on the daily charts because they are the most informative and not as slow as the weekly or monthly charts.
From 2010 to 2016, I manually tested this strategy with various currencies including EURUSD, AUDCAD, USDCAD, USDJPY and GBP/USD, all of which gave me good results, but the best was EURUSD.
This strategy is based on indicators only, I don't use trading news at all. I use the following indicators:
- Ichimoku (only 26 periods of chikou span, I removed the rest of the information)
- Eiken Ashi Smoothed.
- Lu Yingjian.
- CCI (14).
- MACD (12,26,9).
- Random(5,3,3).
The default stop loss for any entry is 150 pips. I'm risking 5%, which means that if I had a $10K account, I would lose up to $500 per position on this position.
These are the rules for long entries:
1. Chikou transcends price.
2. Heiken Ashi smoothed on blue (at least 2 consecutive candles).
3. Heiken Ashi (ordinary candle) white (at least two candles in a row).
4. CCI is in a bullish trend (up) between 90 degrees and 45 degrees.
5. MACD will either enter a bullish trend or leave a bearish trend.
6. Stochastic red lines are bullish (up).
The opposite is true for short positions. If you enter a trend where your position is stopped out and all signals signal entry again, you simply place a new order in the direction of the trend.
I also use a custom trailing stop to manage my orders, which works like this:
- Price rises 50 pips in my direction -> Stop loss moved to 15 pips profit.
- Price rises 75 pips in my direction -> Stop loss is moved to 25 pips profit (10 pips).
- Price rises 100 pips in my direction -> Stop loss moved to 36 pips profit. (10+1).
- Price rises 125 pips in my direction -> Stop loss moved to 48 pips profit. (10+2).
- Price rises 150 pips in my direction -> Stop loss moved to 61 pips profit. (10+3).
- And so on... until the price gets 1000 pips of profit, then the stop loss is equal to the price profit pips and the position is closed.
As you can see, every 25 pips in my direction, I increase the trailing stop by 11, 12, 13, 14, 15... until the pips gained are equal to the stop and then close the position, but this happens when the profit is about 800 and it doesn't happen very often.
I've attached a screenshot of what happened using my EURUSD strategy for almost a year.
I only trade one position at a time until it goes positive (until the price reaches 50 pips and the stop is moved to 15 pips, then if the price just reverses I will always gain 15 pips). However, when a position is "safe", I will open another position if I receive a signal.
I used this strategy in demos for 4 months and at times I had 5 positive positions and just got ideas. On average, it brings me 15% to 20% profit. But before I go live, I wanted to share it and get some feedback.
I've also attached a template with custom indicators.
Let me know what you all think and if there are any improvements.
It would be great if someone could automate the strategy into an EA.
Please share your results and feedback.
Good luck.
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