Real market algo trading

NVP

Legendary member
36,411 1,815
Hi,

Today I will briefly describe strategy which is connected to myfxbook.
As I said before this strategy is in phase of incubation.

It is trend following strategy which is based on failures of last tops/bottoms.


Other rules:

  1. All positions must be closed at the end of the session.
  2. Use Breakeven.
  3. No Take Profits.

Why such rules?
Let’s start one by one.

1. Why I close all positions at the end of the session?

Because:
  • Swap is additional cost.
  • Lower liquidity during night (higher probability for flash crash)
  • New day – new opportunities.

2. Why I use a Breakeven?
  • No sense in staying in the undecided market.
  • Low profit is better than low loss.

3. Why I don’t use Take Profits?
  • No one can predict if directional move takes 20 or 200 pips.
  • Black swans really exist.;)
  • “Cut losses and let profits run”.

Money management in this strategy for now is set as below:
  1. Max DD: 50%
  2. Max risk per trade: 3%

After I accept strategy, I change MM to lower values.

interesting - so its a continuation strategy - like i trade most of the time on forex - at what point do you define "Failure" ?
 

NVP

Legendary member
36,411 1,815
I wish to share one of my trades from yesterday.

On EURJPY EA is currently looking for shorts and a failure of local bottoms.
In the picture below you can see that yesterday such a failure had place which gave opportunity to short sell and to flow with the momentum.
This trade was closed with 34 pips profit.

View attachment 262089

can you show exactly where you took the trade (s) ?

i know where i would have entered (subject to other rules i have being compliant) ...

will be interesting to compare notes

N