The idea is to trade the end of every significant correction on EURUSD
M5. - Trading Logic. We're searching for particular pattern - in
uptrend three we need three bearish candles followed by two bullish
candles. Once we have them it is a buy signal. Respective in downtrend
- we need three bullish candles and two bearish after them. I use this
pattern to find the end of the the correction. - Description of
indicators. The only used indicators are 90 periods EMA on M5 and . I
use it to determine the trend and to filter the signals. - Explanation
of chosen settings. This is one timeframe strategy. Only M5 is used.
EURUSD only. I selected this pair as most liquid. As the strtegy works
on M5 the Take Profit 7 pips. The Stoploss is set to 65 pips to avoid
needless stopouts, but the actual stoploss is time-related. If the
take profit (7 pips) is not hit in three days the position is closed
automatically. Also the strategy has trade-blocking flags "donotbuy"
and "donotsell". donotbuy set to 1 when the last candle is opened
above and closed below upper Bolinger band. The flag is set back to 0
after about half an hour. The idea is to give some time to the market
to decide where to go from the local high. The respective rule is
valid for "donotsell". - Method of trade volume calculation: As this
is contest strategy the volume is increasing with 0.18mio on every
trade starting from 8 mio.