The strategy is based on identifying overbought and/or oversold
moments for the market entry. To do this, momentum indicators like RSI
and ADX are used. At the same time, it is verified that the market in
the long and medium term has a compatible trend with the entry type
(BUY/SELL), for this purpose different moving averages are used with
varying timeframes (1 hour, 4 hours & daily). The strategy is
multi-instrument, this version is using the EUR/JPY & EUR/USD pairs
(plus GBP/USD in the second strategy, see below), but future versions
could use more & different pairs. The strategy uses money management
(MM) to determine the trade volume, but allows the entry of a fixed
volume thus disabling money management. The strategy is selective in
terms of the time to trade. This version includes a second strategy
inside the main strategy, it is a trend strategy on the GBPUSD pair
and uses Mov average (H1), RSI and the last candles to trade following
the trend, it trade only when the main strategy does not trade, is
symmetric of course, but is very strict and could do very little or
even no trades during the month, the SL:TP ratio of this strategy is
9:5. Finally, the strategy also uses a martingale to try to recover
from a loss. The StopLoss:TakeProfit ratio of the main strategy is 9:1
except if the martingale is used. In this version MM is used and the
volume of each trade is calculated as follows:
Equity/initialEquity*risk2Var*riskFactor/riskFineTuning (if Equity is
greater than initialEquity) or
initialEquity/Equity*risk2Var*riskFactor/riskFineTuning (if Equity is
less than initialEquity). In this version risk2Var == 10.0, riskFactor
== 1.0 and riskFineTuning == 3.0 If two consecutive losses happens and
the martingale is activated, then riskFactor == 2.0 The strategy was
designed exclusively for the Dukascopy Strategy Contest in February
2016, so will not work correctly in a different period. Remember that
the use of a copied strategy violates the (4.d) section of the
official contest rules (RCR).