What is the main function of Dukascopy community?
I think the answer is obvious to everyone, exchange ideas so that we can all improve the way we experience the forex market every day...
So taking this maximum and analyzing some articles where more experienced traders share their trading strategies is easy to realize that the most profitable strategies work in larger timeframes. It is clear that many of the strategies presented by community members can work well if they are automated, but given my experience when developing an automatic strategy, the simpler the better. After analyzing some of the articles posted here in the community about strategies used by some members, there was one that jumped me in sight, not only for its potential, but also for its simplicity, just easier to automate. The strategy I am talking about is that one presented by Bluedragon in his September article: Looking for Miraculous Strategies !?!
This strategy is a cross system with applications in various markets such as stock market and indices. Although, is a counter trend strategy that has consistent results, because nothing goes up or down so indefinite ...
Sure automate a strategy to make it profitable is no easy task, even more difficult if this strategy is not our complete mastery. But as I am aware of the good results achieved by such member in the field of buying and selling currencies and as I saw potential in the strategy presented, I decided to "roll up your sleeves and get your hands dirty" as we say in good portuguese.
How I did not know all the details of the strategy I decided then contact its "creator" and submit my idea. It is also good to note that the members of this community are always ready to help other members and it was extremely easy to get all the details of the strategy with member Bluedragon.
As you already know the functioning of the strategy, if not you can consult the article, I will now proceed with the presentation of how was the strategy automated, only for pair EURUSD:
- First, were defined in which Periods the strategy would work. As I mentioned earlier in this article the most profitable strategies have been operating in longer timeframes, so initially set the strategy to work only in: Daily, Weekly and Monthly periods.
- Then, and according to the experience of its "creator", were defined the best parameters for orders placement. Taking into account the closing price of the pair at the end of each period analyzed in relation to the pivot of the related period.
- It was decided that the strategy would use small lots, because we want to have several opened orders at the same time.
- Then we calculated the best TP after running a draft version for a few years. As stated in the article by Bluedragon, "is best left a few pips to the market" . So for daily orders the TP used is 45% of the pivot distance, for weekly orders 70% and 85% for monthly orders.
- How sooner or later the price always ends up closing the pivot, decided to leave the strategy without SL.
- It was created a function that examines whether there are deviations contrary to orders placed weekly or monthly basis and in accordance with the parameters defined places a new order creating a kind of martingale.
- Adjusted a maximum of simultaneously open orders to 10.
- In daily orders were decided to use a function to place a SL at break-even after x pips achieved positive.
- After analyzing a first version that was backtested in several years, it is concluded that the strategy should place orders in 4H period, with a reduced TP like scalping. It was then also introduced the 4H period to open orders using the defined parameters.
- It was open a demo account with no expiration to put the strategy running.
At this time the strategy already has a new version, which meets all the parameters according to its "creator", but as the base version also shows profitable we have 2 different demo accounts where are each one of the strategies.
The base version is running in the demo account since September 25, with many orders already closed in TP, as you can see in the next images:
The current version is in another demo account running from 17 October and has already closed some orders as you can see in the next images:
The first month running on demo account was really amazing, so I decided make a small video where you can see the base strategy in action from the day it was launched to the end of October. This is the link for youtube video: Bluedragon Pivots Strategy Video.
Funniest of this project is that we really can do funny things as a team using the synergies of each, in order to maximize the final result. The member Bluedragon has more knowledge of trading, although I have some too, but in this project I used most of my programmer gifts to develop the strategy in accordance with the parameters defined by him. In the end, we got a result so far is to surprise us positively, and we hope that will continue ... HOPE YOU DO THE SAME!!!