This Strategy is based on DEMA cross over to identify direction.
DEMA(22) is the faster one time period 22 and DEMA(200) is the slower
one time period 200. If DEMA(22) is greater than DEMA(200) and Price
falls back below DEMA(200) line a Long Order is placed. Similarly if
DEMA(22) is less than DEMA(200) and if the price rises above DEMA(200)
line a Short Order is placed. If this pattern is not found order is
not placed.
Currency Pair GBPUSD, TimeFrame 5 mins, SL 17 pips TP 499 pips. Also
Minpips variable to ensure minimum number of pips if Profit levels
have reached above 29 pips. GBPUSD is a fast moving pair and we can
catch the trend early on a 5 mins timeframe for day trading. SL is
tight and TP is wide for better risk : reward ratio.
Trading Volume = Equity / 50000.
First the default currency pair is identified which should be GBPUSD
and the default time period is checked which should be 5 mins. Then we
get all the time units MonthDate, DayoftheWeek, Hours, minutes and
Seconds. Not necessarily all the info is used but its handy for future
variations. Then we get all the indicators DEMA(200) shift 0. DEMA(22)
with shift 0,1 and 2. RSI(14) with shift 0 and 1. It may be noted that
this strategy doesn't use the RSI indicator. Trading Volume is
Calculated. After all the info is gathered Strategy starts checking
for the Direction of the Trend on one side and Checks the Time in GMT
on the otherside. Trading Time is from 1:00 GMT on weekdays. Closing
Time on Fridays is 18:00 GMT. On other days its 20:00 GMT. Any Open
orders will be closed if the Trading time expires.
If there are no Open Orders and the Trading time is valid then Orders
would be placed based on the above explained Trading Logic and Trend
direction. If the SL is not hit and Profit rises above 29 pips a
variable Minpips is assigned the value of minimum pips to be taken. It
is 50 percent of the maximum pips reached if its below 75 and its 80
percent of the maximum pips reached if its above 75. And if the order
survives the day it will be closed when the trading session expires.