The efficiency of price movement
Good day, dear colleagues!
In this topic, I will share with you the breakdown of trading strategies. I will try to tell you everything in detail, so you can sell it yourself. And also attach a result of the historical test.
Theory: The price movement can be decomposed into two main phases – accumulation and distribution. This property we will use to extract profit.
The rules are quite simple:
1. Identify protorgovki / accumulation.
2. Determine the levels to open market orders.
3. Log into the market at the beginning of the pulse / distribution.
4. Close the deal on Taiko, a foot or a timeout.
5. Repeat all over again from step 1.
We need indicators and KPD PriceChannel.
KPD indicator is calculated as follows:
KPD = PriceChannelWidth / (ATR * Period) * 100
Period – the period of calculation;
ATR – Average True Range for the Period;
PriceChannelWidth – the difference between the maximum and minimum price.
Now, specifically:
Period Calculating indicators 34, timeframe 1 hr.
If the KPD became less than 14, then there was a build, and we are waiting when the price breaks through one of PriceChannel levels. We are entering the market at the break. Stop is placed at the middle PriceChannel, Teyk equal to two feet. If within 25 minutes, our deal is not closed by the foot or Taiko, the close of the market.
Examples of transactions:
Download the demo version of the indicator KPD here.
The test for EURUSD, equal to the risk on the transaction:
With reinvested profit about 140%, and the maximum drawdown -6%.
All the profits!
Monitoring of trade in one of my robots here.
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