Hello , Can you make an EA based on the follwing Steratgy ?
Time Frame - DAILY (but seems to be ok with H4, H1 too)
CURRENCY - (applicable to all)
When to BUY or SELL?
At the beginning of the day, just check the previous candle. If it is positive, then BUY, if negative, then SELL
TP - let it ride, until a SL is met
SL - on BUY, if the candle reverses and reached the CLOSE of yday; or if the current candle closes on lower (next candle we open SELL)
SL - on SELL, if the candle reverses and reached the CLOSE of yday, or if the current candle closes on higher (next candle we open BUY)
Always trade with the direction of the last candle. So, if the SL of the day was hit, but it came back and went to the direction of the previoius candle, we will open a new position again. But if it is a reversal, we dont open a new position.
GBPUSD - Daily Time Frame
Jan 2 OHLC -
1.4565 1.4576 1.4377 1.4546
Jan 5 OHLC
1.4546 1.4738 1.4433 1.4699
Jan 6 OHLC
1.4698 1.4992 1.4503 1.4916
Take note of Jan 2 candle, it is a BEAR. So for Jan 5 we open SELL trade, SL at Open price of Jan 2 (1.4565). Jan 5 opened at 1.4546, reversed and went up, hit our SL. -19 pips + the 3 pip spread, net loss of 22 pips for the day. We DO NOT open BUY position on this day because previous candle was a bear.
Day #1 -22 pips
Next day, we BUY (based on Jan 5 bull candle), SL at Open of Jan 5 (1.4546), again it went to a low of 1.4503, thus hitting our SL and a loss of 153. But lo and behold, it went back up again, and went pass our previous day's close. Since we are on a BUY trend, we opened a new position. Thus ending that trade with a nice +218, for a net profit of +59pips for the day. We only open a SECOND TRADE for the day, if it is on the same trend.
Jan 7 (#4) - no doubt a winner on BUY. +175 pips
Jan 8 - another winner with BUY +118 pips
Jan 9 (#5) - the candle closed lower, thus we close the trade, and end the day with -54 pips