SloppyJoe is a strategy that trades EurUsd or another pair based on 5
min candle periods. The indicators that I have used are two different
SMA's - both on a daily timeframe period - that are based on Joe
DiNapoli trading tools; they are the so-called 3x3 and 25x5 SMA
indicators. This means that the indicators are, respectively, looking
at the 3-period SMA and the 25-period SMA. The SMA_3 is displaced 3
periods forward, and the SMA_25 is displaced 5 periods into the
future
which makes them leading indicators. The SMA indicators determine
whether the pair is bearish or bullish. Furthermore, I use a
combination of Stochastic and MACD indicators - on a hourly
time-period - to identify market direction. These indicators are set
up as best as I could to mimic the Joe Dinapoli setup (as DiNapoli
traders would use them) but they are not exactly the same as the
genuine DiNapoli indicators because these are unique and need to be
purchased (hence the name SloppyJoe - 'sloppy indicators'). The
strategy trades countermarket which means when a bullish setup is
identified it will sell, and vice-versa. I have done this because
backtesting showed this to be more profitable than following the
logical setup. The strategy openes positions long or short with a SL
of 21 pips and a TP of 79 pips (or more - depending on the version I
am using). The higher the percentage of profitable trades, the better
of course, and drawdown is limited because of tight SL. It trades 4.2
mil. (or more-depending on which version I am using) per position.
The
strategy will execute a trade when the price of EurUsd or any other
pair that I use (after the
close of a 5 min. candle) is above or below both daily SMA_3 and
SMA_25 and Stoch and MACD hourly both signal bullish or bearish
direction. So, in the case of a buy position, for example, the price
is below daily SMA_3 and SMA_25, and Stoch and MACD hourly indicators
are both signaling a bearish trend. For a sell position to be opened
everything is vice-versa.