Introducion

In continuation of previous article, I will now introduce some minor updates and the possibility to back-test the strategy to clearly understand its beahvior: far better than any image or personal comment.

The idea and strategy concept are not intended to be used in full automatic mode, but as additional tool for daily trading and position entries.

Updates on "iLondon"

As always happen everytime I use something I tend to modify it in the attempt to improve. Let's start from the setup parameters window:


As you can see it's more clean and straight forward.
Updates done:
  1. The box is just 1 fixed color.
  2. No more breakout alerts. (eventually can be re-implemented).
Basically the code now will simply draw the box in all instrument charts, then can be stopped.

DOWNLOAD HERE .ZIP FILE

Updates on "iLondon_Widget"


Here's the setup window updated and widget appearance:


  1. You can now set which EMA indicator the position will be referring to when setting buy/sell orders.
  2. This will be used as quick Stop loss / Take profits increase: by just one click, you will have automatically update the orders depending its direction.
  3. Set here the .wav file to be executed when the order gets filled (needs to be saved in "C\\...\\MyStrategies" folder).
DOWNLOAD HERE .ZIP FILE

How it works

The best way to show if a tool/strategy/idea really works based on the user trading attitude, is to put it in a back test and see what are best and worst cases so to put everything on the table, not just the idea that it will eventually works and throw some improvements.

To begin, DOWNLOAD HERE the .ZIP FILE containing the full automated version. Please do not run it in a real account, it's intended only for you to understand how the strategy works and if fits to you.

Here's how the setup window appears:


As seen I added the possibility to set different position size and targets and automatic breakeven so to test different combinations, together with some implementations:
  1. The code filter entries based on OSMA (30,100,30) in 30 minutes timeframe: if positive will not open shorts, and opposite
  2. If current candle closes back inside the box, the order will be canceled
Since I spent heavy time consuming back-testings, following here the ONLY profitable one, obtained by using default setups in 3 months test including March - April - May 2016:

All the other tests resulted in a TOTAL or PARTIAL LOSS, so please again, DO NOT USE as an automated strategy!

The reason behind its losing behavior is based on the fact that when market ranges between two major levels, price breakes up just to come back down (and opposite) so there are not enough trend-continuation to let it be profitable.

By back testing anyway, you will be able to understand how every day there is surely a profitable position, which if correlated with a 30minutes chart and a Daily / Weekly study, can lead to some interesting costant results, simply by following price moves and acting quickly if/when price reverses.

To practice even more, one can simply put the "iLondon_Widget" in visual back test, plotting on the chart the EMA and eventually some other indicators, depending on your preferences (suggested: 1 min MACD (12,26,9) applied price close).

Conclusions

I made the whole setup more clean and with less noisy color changes and labels, thinking it was a good idea only for my personal needs. Anyway the first code version is still downloadable and / or you can ask me some personalizations depending on your taste (limited of course to my coding knowledge).

I hope you will like my job and find it useful. In next weeks I will keep trying to find if there's a way to stabilize it and be run in full automation with some costant results, or eventually implementing the whole concept in other strategies.

Meanwhile it would be really appreciated to know if you find some interesting combinations: 2 eyes can see a lot of things, but the more eyes we have, the more we see.

Thank you.
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