Very simple strategy AUD/USD - MT4/MT5 Resources
Hi everyone, if you haven’t seen my last article, please read it as it is based on the same strategy.
https://www.forexfactory.com/showthread.php?t=993925
There is a slight difference for this pair because when I backtested my strategy I noticed that I had a lot of losing trades, so I changed the entry signals.
Therefore, this strategy uses a 1 hour time frame and you are only looking at the closing candle at 8am UK time. If the conditions to enter the trade are met, we will place the trade at 9am UK time. If there are no transactions at this time, we do nothing until the next day
Indicators used: Aaron’s upper and lower setting periods are 30, 26EMA and 100EMA
Conditions for entering a buy transaction:
1 - Aaron Down must be higher than Aaron Up.
2 - 26EMA must be higher than 100EMA
Conditions for entering a sell trade:
1 - Aaron Up is higher than Aaron Down
2 - 26 EMA below 100EMA
That's all you need to enter the trade, with Stop Loss set at 150 pips and Take Profit set at 50 pips, both from the closing price of the 8 AM candle. I know a 3:1 RR is terrible.
If you are already in a trade and another trading opportunity comes up, whether it is a buy or a sell, you will not enter a new trade but will let the trade continue until you reach your take profit or stop loss.
So far, I have backtested from 06/01/20 to 10/05/20. So I haven't backtested it long enough. My results so far are 16W and 0L, which is a 32% profit since the beginning of the year if I trade with 2% risk.
I've inserted pictures of my first 3 transactions this year for reference.
The 26EMA is the black line and the 100EMA is the red dotted line.
The first trade was a sell trade, which took a while, but eventually won. Each black line is simply a candle marking 8 AM GMT. The red circles are the entry and exit of TP or SL
This is another selling opportunity that lasted a few days
This is another selling opportunity that lasted a few days
I will test further to see if I can change TP and SL to get a better RR or overall gain percentage.
I'd love your feedback on this and if anyone would like to help improve this strategy. So far this seems to suit the required sit-downs and it's really good yields, just like my GBP/USD strategy. Combining these two strategies, our account gains could reach 50% starting from the beginning of the year.
The current winning streak of this strategy is 100%, with a record of 16W 0L, which is impressive. I don't believe this situation will last for long, and the RR is 3:1. It only takes 6L to make the account lose money at this time.
When I have time I'll try to get more pictures of the trades I made during my backtesting period
https://www.forexfactory.com/showthread.php?t=993925
There is a slight difference for this pair because when I backtested my strategy I noticed that I had a lot of losing trades, so I changed the entry signals.
Therefore, this strategy uses a 1 hour time frame and you are only looking at the closing candle at 8am UK time. If the conditions to enter the trade are met, we will place the trade at 9am UK time. If there are no transactions at this time, we do nothing until the next day
Indicators used: Aaron’s upper and lower setting periods are 30, 26EMA and 100EMA
Conditions for entering a buy transaction:
1 - Aaron Down must be higher than Aaron Up.
2 - 26EMA must be higher than 100EMA
Conditions for entering a sell trade:
1 - Aaron Up is higher than Aaron Down
2 - 26 EMA below 100EMA
That's all you need to enter the trade, with Stop Loss set at 150 pips and Take Profit set at 50 pips, both from the closing price of the 8 AM candle. I know a 3:1 RR is terrible.
If you are already in a trade and another trading opportunity comes up, whether it is a buy or a sell, you will not enter a new trade but will let the trade continue until you reach your take profit or stop loss.
So far, I have backtested from 06/01/20 to 10/05/20. So I haven't backtested it long enough. My results so far are 16W and 0L, which is a 32% profit since the beginning of the year if I trade with 2% risk.
I've inserted pictures of my first 3 transactions this year for reference.
The 26EMA is the black line and the 100EMA is the red dotted line.
The first trade was a sell trade, which took a while, but eventually won. Each black line is simply a candle marking 8 AM GMT. The red circles are the entry and exit of TP or SL
This is another selling opportunity that lasted a few days
This is another selling opportunity that lasted a few days
I will test further to see if I can change TP and SL to get a better RR or overall gain percentage.
I'd love your feedback on this and if anyone would like to help improve this strategy. So far this seems to suit the required sit-downs and it's really good yields, just like my GBP/USD strategy. Combining these two strategies, our account gains could reach 50% starting from the beginning of the year.
The current winning streak of this strategy is 100%, with a record of 16W 0L, which is impressive. I don't believe this situation will last for long, and the RR is 3:1. It only takes 6L to make the account lose money at this time.
When I have time I'll try to get more pictures of the trades I made during my backtesting period
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