This month's Currency Trader magazine features a PA system that they claim outperforms any other tested.
It is a three pair portfolio consisting od EUR/USD, USDJPY and GBP/USD.
It averages a 15% return on equity per year with a max DD of 16%. The backtest went back to 1988.
It was tested with a very conservative MM and will probably do much better risking 2% per trade.
It used Daily bars. It was not tested on smaller TFs. It may work on any TF. It was not tested on any other pairs and the writer believes it will work on any with spread of 3 or less.
Here is the logic:
Long Trade (Short Exit)
Close[0] < Open[0]
Open[0] >Low[2]
Range[0] > Range[7]
Close[1] > Close[7]
Close[1] > High[4]
Short Trade: (Long Exit]
Close[0] > Open[0]
Open[0] < High[2]
Range[0] > Range[7]
Close[1] < Close[7]
Close[1] < Low[4]
It is always in the market. Trades are sized so that 2*ATR(20) =0.75% of equity.
An indicator pointing to the entrance candles will greatly facilitate back testing on other pairs and lower TFs.
Thank You
It is a three pair portfolio consisting od EUR/USD, USDJPY and GBP/USD.
It averages a 15% return on equity per year with a max DD of 16%. The backtest went back to 1988.
It was tested with a very conservative MM and will probably do much better risking 2% per trade.
It used Daily bars. It was not tested on smaller TFs. It may work on any TF. It was not tested on any other pairs and the writer believes it will work on any with spread of 3 or less.
Here is the logic:
Long Trade (Short Exit)
Close[0] < Open[0]
Open[0] >Low[2]
Range[0] > Range[7]
Close[1] > Close[7]
Close[1] > High[4]
Short Trade: (Long Exit]
Close[0] > Open[0]
Open[0] < High[2]
Range[0] > Range[7]
Close[1] < Close[7]
Close[1] < Low[4]
It is always in the market. Trades are sized so that 2*ATR(20) =0.75% of equity.
An indicator pointing to the entrance candles will greatly facilitate back testing on other pairs and lower TFs.
Thank You