My strategy is designed to catch TRENDS an works with simple
indicators : ATR (average true range ) and SMA (simple moving average)
ATR used is 2 periods and 48 periods .Sma used is 50 period and 150
periods Time frame is 5 minutes . We are using sma to open trades and
atr to close trades OPEN TRADES : if sma 50 is above sma 150 then buy
, if sma 50 is below sma 150 then sell CLOSE TRADES : if atr 2 is
above atr 48 then close the current open trades . The logic is if it's
not monday or friday then open a trade with the sma if and only if
there is not an open trade .If there is and open trade then we check
ATR to close trades if necesseray indicators description :Sma is used
because its a simple and efficient way to follow trends, ATR is used
to adjust next entry to "price action" if a candle have an atr greater
in the short term (2) than in the long term (48 ) it menas that
something is happening (climax in the trend ) , its better to close
the trade to breathe 5 mn and after that a new trade will be opened in
the trend with new TakeProfit and StopLoss (closer of the recent price
action ) I added other calculations such as "get time unit " , it will
permit trading only if the day is not monday or friday , because
during those periods we can have considerable lag on simplemoving
average and it can causes many false signals . I also added a money
management unit for the contest in order to maximise profits if the
strategy is successful : if equity is below 233.000$ the trade with 5
million size if it's above then trade with 10 millions size settings :
5 mn time frame in order to trade quickly after a closed trade .GBPAUD
is the pair traded because it's probably the most volatil pair on
forex market ; TAKE PROFIT is set to 50 and stop loss at 100 to
produce statistical edge