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Simple Moving Average (Price Open, Period 2) is equal to the middle of the previous bar (when there is no gap)

You use weighted MA and that means the MA value will be closer to the previous closing price.

We have to open at the MA value.

If the previous bar is white, the price has to fall back to the its body middle.

Moving Average (Price Close, Period 1)

Use previous bar value True

is the previous bar closing.

The position will be closed during the current bar if the market reaches first the middle of the previous bar and after that its closing. If the position is not closed at the current bar, it will be closed at the beginning of the next bar.

The logic of these two moving averages guarantees that the deal will open on a price located between them. Since we have moving average indicator in the close slot lying below the open position price, the loss will be limited.

When **FSB** calculates the back test it uses the known points - open, high, low and close prices. Also, it tries to interpolate the bar to calculate the intermediate points. The problem is that we know the prices of the point but do not know the sequence.

When we use for entry and exit points Price Open or Price Close the result is 100% correct.

When we use an indicator like MA, the result of the bar interpolation is 88 - 96% correct. We don't know how does the price move inside the bar.

Hints for more reliable results:

- Where is possible use Price Open or Price Close for entry and exit.

- Use lower time frame and scale the parameters ( MA(10) on a daily chart is equal to MA(60) on 4 hours chart

- Test on different markets and periods.

- A small change of a parameter has to lead to a small change of the result. The opposite shows over-optimisation.

- Always seek a lower drawdown.

It is possible this strategy to exploit the interpolation method of calculation to show higher result.

The rules of the strategy are quite simple and the result is good, but we have to be aware of the "Maximum drawdown: 1488 pips"

Many pips profit!