This article describes the strategy used by myself, fx_lmcap, in the Dukascopy Strategy Contest in July 2023.
The strategy trades GBPUSD. There are 2 types of orders: 1st entry orders, ‘Order Type A’, for which the trade amount is calculated according to the formula: ‘Default Trade Amount’ x ‘Equity’ / 100000 ('Default Trade Amount' = 0.25 million); and repositioning orders, ‘Order Type B’, for which the trade amount is calculated according to the formula = ‘Previous Closed Order Trade Amount’ x 3.
The signals generated by the algorithm for an ‘Order Type A’ follow the Stochastic Oscillator (STOCH) assigned with a 1-hour period. There are 3 blocks of STOCH signals, each with a 1-hour period but with a different “shift” parameter, 0, 1 and 2. See the screen capture below with 3 STOCH blocks highlighted inside the yellow square.
The strategy trades GBPUSD. There are 2 types of orders: 1st entry orders, ‘Order Type A’, for which the trade amount is calculated according to the formula: ‘Default Trade Amount’ x ‘Equity’ / 100000 ('Default Trade Amount' = 0.25 million); and repositioning orders, ‘Order Type B’, for which the trade amount is calculated according to the formula = ‘Previous Closed Order Trade Amount’ x 3.
The signals generated by the algorithm for an ‘Order Type A’ follow the Stochastic Oscillator (STOCH) assigned with a 1-hour period. There are 3 blocks of STOCH signals, each with a 1-hour period but with a different “shift” parameter, 0, 1 and 2. See the screen capture below with 3 STOCH blocks highlighted inside the yellow square.