1. Overview

After several publications on how to build strategies in Visual jforex and tracking of various strategies performances I decided to write one more article on several strategies usage at the same time. So in this publication I will cover 3 different strategies and its pros and cons on its usage simultaneously.

2. Strategies logic

There are 3 strategies working in different pairs: EUR/USD, USD/JPY and EUR/JPY.

All 3 strategies has very simple positions opening logic it uses 5 min. RSI to determine position opening. RSI thresholds are configurable and can be change on strategy start:

Thus simply if RSI is higher than threshold rsi_h strategy opens short position and if RSI is lower than threshold rsi_l strategy opens long position. Additionally there is check if spread is within acceptable range in order not to open positions then spread widens and also one more check is implemented which prevents increasing exposure in the same currency if certain position is already open. For example if there is already EUR/JPY long opened opening of EUR/USD long will be prevented by strategy only opening of EUR/USD short will be possible. This is realized in visual jforex in following way:

This part of strategy logic implements if trade according to indicator value is allowed by comparing present RSI value with thresholds set and assigning variable trade_indi values false or true. In case trading according to indicator is allowed additionally variable trade_dir is set to true or false in order to determine long or short position to open.

And this part implements check if there is position already with same currency exposure in same direction and if it is a case opening of position is prevented.

Also it is possible to have only one position at a time and in all strategies position amount management is implemented based on previous positions outcome.

This functionality is implemented by calculating p/l pips after position is closed. All strategies calculates not only their trades but all trades and if p/l reaches -10 pips position further position amount is increased in all strategies by multiplication factor, which can be configurable at the strategy start. And if p/l reaches 30 pips positions amount is set to initial value in all strategies. Either any threshold is reached new calculation of p/l is started by setting its value to 0.

That's are the main parts of mentioned 3 strategies. I will not describe in details how candles are filtered or spread tolerance evaluated as I covered similar topics in my previous publications.

3. Conclusion

I use mentioned strategies in Dukat contest. I think strategies are not ready for LIVE account yet as continuous increasing of positions amount is not good practice and somewhere must be stop by strategy and if not it might end with loose of all account. And in any case if I run strategies in LIVE account I use conservative leverage, e.g. 1:3 or 1:4 and also put account stop loss level quite near present equity value.
Automated strategies have very useful functionality but should be used carefully and alongside with means for limiting damages if something goes wrong.
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