Hi --

I've been trying to set up a backtest of this strategy, but FSB doesnt' seem to have the options to do it.  Is it just because I'm new, or is this one that FSB cannot backtest?  Here's the strategy from forext-strategies-revealed.com.  Since the graphs didn't show up here, I'm going to send it to you by email also. 

Thanks,
ericjt
ejtaylor@csloxinfo.com

Trading strategy setup:
Currency pair: GBP/USD or any other.
Time frame: 1 day. No indicators.

Trading Rules:

This system is based on the fact that most of the time you will not find same size candles for 2 consecutive days on a daily chart. What does this mean for us ? only one thing: the price is moving steady either up or down with no price ?noise? which is always present on smaller time frames.

FOREX TRADING SYSTEM

At 00:00 (your local time) or rather: according to the time set on your trading platform, with newly formed daily candle find highest and lowest price of the day for the previous daily bar.

If the price bar (including shadows) is less than 90 pips long we will not open new trades on the next day. (This is our requirement for GBP/USD pair, it can be changed/adjusted for other currency pairs).

If trading can be done, set Buy stop order at the top of the highest price +5 pips and Sell stop order at the bottom -5 pips.

Put your stop loss order for a Long entry at the lowest price for the day -3 pips.
Put your stop for Short order at the top of the highest price for the day +3 pips.

These additional pips for entries and stops can also be adjusted once a behavior of chosen currency pair is learned over the time.

Now, when one of the orders is filled ? stay in the trade for the whole day. At midnight with the new daily bar open, adjust your orders and stops according with the previous daily bar following the same routine; keep trading position open until get +100 pips, then you may close current position to reward yourself. Rewarding is a very powerful tool, use it.

Also close you current position (with either profit or loss) if a daily candle becomes a Doji candle or is almost a Doji. What we mean by ?almost? is that for the true Doji you need open price = close price, while ?almost Doji? can have some distance between open and close (but no more than 10 pips).

For example: on May 1st at 00:05 am, we opened a daily chart and it was a downtrend. We set our orders: both Buy and Sell according to the previous candle (April 30th). The same day our Sell order gets filled. The day has passed and the price made some further progress down. At 00:05 am May 2nd with a new daily candle appearing we change our stop loss for our current Short position according to the high of the previous bar (from May 1st) and we either continue to stay in the trade or lock in profits. Also we reset our Buy order which is now going to be just above the highest high of the May 2nd price bar.

This system also gives an opportunity to be constantly in trade and at the same time it requires very little observation and takes only 5 minutes to set all positions and forget about Forex till the next midnight. You will see losing trades with this system from time to time ? it is a part of any trading, but the overall result will be very positive.

Let?s look at the same chart in more details.

FOREX TRADING SYSTEM

Next is a detailed candle-by-candle explanation of the trading on the chart above.

We will number candles starting form 1 ? so number 1 is a circled candle.

1 st candle (high ? low = over 90 pips) - allows entries next day. We set orders.
2st candle ? the price didn't get above or below the 1st candle, no orders filled. Midnight: 2nd candle is over 90 pips long, so we reset orders according to 2nd candle?s high and low.

3nd ? buy order filled. Midnight: day ended negatively, but didn't trigger the stop loss, we keep our position open and adjust stop loss below the low of the 3rd candle and minus additional 3 pips. The 3rd candle is also less that 90 pips long and we wouldn?t trade the next day except that for now we have already one position running.

4rd ? went in profit and we rewarded ourselves closing position at the end of the day with just over 100 pips (you can actually set your target lower than that, and use 100 pips as a suggestion).

Choosing a profit target for the day becomes easier when you know a daily range average for a particular currency pair.

For example,
GBP/USD daily range average is 180-200 pips
EUR/USD daily range average is 110-120 pips
USD/JPY daily range average is 80-90 pips
USD/CHF daily range average is 120-130 pips

Taking about a half of it can determine your profit targets.

5th ? no trading as the price didn?t exceed previous candle boundaries. Midnight: candle #5 is less than 90 pips, thus we are not setting any orders for the next day.

6th ? we didn?t trade it and for a good reason ? price managed to get below and above the previous candle?s high and low, which could mean for us hitting our stops, in worst case - twice.

7th - we had our stop loss below the low of candle 6, this trade is a reward again ? more than 150 pips, so we lock it... and for a good reason...

We will have systems that will be able to easily allow trades running their positions further relatively safe, but for this one it is important to lock your profits ? the reason is that we move our stop order every day.

8th ? no trading opportunities. Midnight: candle 8th is less than 90 pips means we are not going to trade next day.
9th - no trading and we were very right about it. Midnight: 9th candle is long enough for us to set targets for the next day.
10th ? no orders triggered. Midnight: 10th candle is long enough again which allows us to reset our orders.
11th ? we sold, the day ended in profit, but the profit was relatively small, so we are going to stay in trade.
12th ? brought us 100 pips at the end of the day and we go out taking profits. Also we reset orders for tomorrow.
13th ? Long order was triggered and price made some progress during the day, but closed almost at the same level. We stay in and adjust our stops.
14th - our stop loss is hit and moments later buy order is filled. The price closed below our order, we stay in trade.
15th ? we are almost at breakeven, but nothing to earn, we stay in trade.
16th ? brings us loss again as our stop loss is hit; a short position is filled soon after and so on...