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.
All positions must be closed at the end of the session.
No Take Profits.
Why such rules?
Let’s start one by one.
1. Why I close all positions at the end of the session?
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:
Max DD: 50%
Max risk per trade: 3%
After I accept strategy, I change MM to lower values.
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.