Strategies

MyForexResults.com is currently employing two main strategies across three currency pairs:- EUR/USD, USD/JPY and USD/CHF. The live account is held with Alpari, which have so far proven themselves to be a reliable and reasonably priced broker. All strategies are coded in MQL4 and run on the Metatrader platform. They make no use of any indicators, instead relying on market prices and patterns set during the recent history of the chart. While it could be argued that these patterns themselves are acting as indicators, the strategies explored here are attempting to move away from complex indicator systems. The concept is that certain patterns tend to repeat themselves and can be identified and utilised in order to generate a statistical edge when finding a suitable time to open and close a position. Run for long enough, it is expected that the statistical edge that the identification of these patterns has shown to confer in backetesting is translated into real profit on live trades. Whether it works like that or not will be revealed as time goes on. We will be keeping the results updated regularly so you can see how we are doing.

Strategy #1

The first of these strategies is currently being employed solely on the EUR/USD pair. The concept is fairly simple and involves opening a position when the price breaks through the levels that had been recently achieved. Essentially the code runs through a set period of the chart history and picks out the peaks and the troughs. When the current price moves above the pre-determined high point a long order is placed. Conversely, if the price moves below the pre-determined low point a short order is placed. A stop loss is set for both long and short positions. Two profit targets are set and when the first is reached a trailing stop is started. When the second is hit the trailing stop is reduced to lock in as much profit as possible.

Strategy #2

The second strategy is also very simple and is being run on three currency pairs (EUR/USD, USD/CHF and USD/JPY). This involves taking a long position if the current price moves below yesterday's low (assuming the open/close prices of the previous day fall within a certain range). Conversely a short position is opened if the price moves above yesterday's high. Although this seems a little counter-intuitive, backtesting has suggested that it is a potentially profitable strategy over long-term time periods. As you might expect, this strategy tends to perform best in choppy conditions when the market is not in a strong up or down trend.

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