This strategy tries to predict false breakouts in the market and
trades the correction.
Pairs: Any of the major Yen (JPY) crosses.
Indicators Used: EMA, ATR, Historical Candles.
Logic: On a 30 minute chart, the strategy will keep checking the last
5 candles on close. If on an upward trend, once the highest high of
the last 5 candle closes is reached, a sell position is opened at the
open of the next 30-minute candle. The stop loss is set at 3 times
the
24-hour ATR. It is reduced to 150pips should need be.
For a buy position the inverse of the latter is considered. I.e. once
the lowest low of the last five 30-minute candle is reached and the
EMA shows a trend reversal.
Signal Filter: Includes 2 EMA and time filter. The strategy will only
consider signals between 06:00GMT and 22:00GMT. It does not trade on
Friday so as to prevent possible margin cuts due to reduced weekend
leverage. For a buy signal to be accepted the fast EMA must have
crossed the slow EMA from below and the reverse for a sell signal.
Trade Management: A take profit of 10 pips is set at trade open.
However if a 5 period high/low is reached in the subsequent candles,
the position is closed regardless of the number of pips as long as it
beats the open price.
trades the correction.
Pairs: Any of the major Yen (JPY) crosses.
Indicators Used: EMA, ATR, Historical Candles.
Logic: On a 30 minute chart, the strategy will keep checking the last
5 candles on close. If on an upward trend, once the highest high of
the last 5 candle closes is reached, a sell position is opened at the
open of the next 30-minute candle. The stop loss is set at 3 times
the
24-hour ATR. It is reduced to 150pips should need be.
For a buy position the inverse of the latter is considered. I.e. once
the lowest low of the last five 30-minute candle is reached and the
EMA shows a trend reversal.
Signal Filter: Includes 2 EMA and time filter. The strategy will only
consider signals between 06:00GMT and 22:00GMT. It does not trade on
Friday so as to prevent possible margin cuts due to reduced weekend
leverage. For a buy signal to be accepted the fast EMA must have
crossed the slow EMA from below and the reverse for a sell signal.
Trade Management: A take profit of 10 pips is set at trade open.
However if a 5 period high/low is reached in the subsequent candles,
the position is closed regardless of the number of pips as long as it
beats the open price.