70% accurate!
If hour 1 is a buy trigger AND hour 4 is a buy trigger, do you SELL 1 and BUY 5?
Isn't that the same as buying 4?
Just trying to understand.
Hi,
Maybe you could consider to add a couple of rules to validate the trade.
Take a look at the picture. Daily SMA 5 with hourly chart. Many times the price is above or below the SMA and turns against you.
If hour 1 is a buy trigger AND hour 4 is a buy trigger, do you SELL 1 and BUY 5?
Isn't that the same as buying 4?
Just trying to understand.In that scenario you have to look at the price of the one you are about to sell versus the one of the five you will buy and then decide if you sell 1 and buy five or simply buy 4. It isn't the same as buying 4.
Regards,
Hi, yes. What we are after is the average price over those 5 days which is why we sell 1 per day and in 70% of the time the average is quite higher. I was thinking of adding in ATR or some other volatility calc to extend the 5 days a bit further to improve the results. The only thing that hurts this a bit is the spread, so I'm trying to improve on that.
Hi,
Maybe you could consider to add a couple of rules to validate the trade.
Take a look at the picture. Daily SMA 5 with hourly chart. Many times the price is above or below the SMA and turns against you.Hi, yes. What we are after is the average price over those 5 days which is why we sell 1 per day and in 70% of the time the average is quite higher. I was thinking of adding in ATR or some other volatility calc to extend the 5 days a bit further to improve the results. The only thing that hurts this a bit is the spread, so I'm trying to improve on that.
You could try it on higher timeframes, so the spread will be less painful.
You could try it on higher timeframes, so the spread will be less painful.
I guess then I would have to see how much that affects the income per day as a higher time frame would produce less trades.
hi
I guess then I would have to see how much that affects the income per day as a higher time frame would produce less trades.
higher TF more valid than lower TF but it required more pips stop loss to handle
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All,
This is my first post here, but I want to share something which is 70% accurate / profitable and very simple to implement. I am however no good at creating an EA for this as I am not a programmer. If anyone wants to forward test this, then please go ahead. I found this by using the program Weka and doing some Genetic testing of Moving averages.
On EURUSD 1HR (although this should work on most currency pairs), do the following:
Each hour, check the close price against the 5 day simple moving average. If the close price is above the 5 day simple moving average then buy 5 seperate lots. Then wait (ie skip..) 2 hours worth of data and on the third hour sell 1 of the lots. 4th hour the next and so on until all lots are sold.
Repeat this whole series of buys and sells for each buy signal generated. You may have more lots open at any time if the next hour also produces another buy signal. You should also try to avoid major economic news days to reduce the chances of drawdowns.
That's it.
If someone wants to backtest or produce an EA to test, please post the results here.
There may be other ways to improve this further, so I will post here again if I find new ways.
Regards,
Paul.