The rules of the strategy are simple and it can be tested easy with FSB.
Forex Strategy Builder V 2.4.0.2
Strategy name: so easy system
Exported on: 14.4.2007 г. 09:31:24
Market: EURUSD 1 Day
Spread: 4 pips
Swap Number: 1 pip
Balance: 174 pips
Minimum account: -677 pips
Maximum drawdown: 865 pips
Time in position: 11 %
The same direction signal - does Nothing
The opposite direction signal - does Nothing
[Opening point of the position]
Bar Opening
The market entry is at the beginning of the bar
Base price - Open
[Opening logic condition]
MA Oscillator
The MA Oscillator crosses the Level line upward
Smoothing method - Exponential
Base price - Close
Fast MA period - 5
Slow MA period - 10
Level - 0
Use previous bar value - Yes
[Opening logic condition]
Stochastics
The Slow %D is lower than the Level line
Smoothing method - Simple
%K period - 10
Fast %D period - 3
Slow %D period - 3
Level - 70
Use previous bar value - Yes
[Opening logic condition]
Stochastics
The Slow %D rises
Smoothing method - Simple
%K period - 10
Fast %D period - 3
Slow %D period - 3
Level - 20
Use previous bar value - Yes
[Opening logic condition]
RSI
The RSI is higher than the Level line
Smoothing method - Simple
Base price - Close
Smoothing period - 14
Level - 50
Use previous bar value - Yes
[Closing point of the position]
Trailing Stop
Stop - -30
I'll explain the steps:
1. We set the market - EURUSD - 1Day
2. The Spread, Swap we can set according to our broker - in the example - 4pips spread, 1 pips roll-over fee
3. Entry point
The entry point of this system is not specified. I'll use the most common entry - Open price
[Opening point of the position]
Bar Opening
The market entry is at the beginning of the bar
Base price - Open
4. Open logic conditions
o The 5 EMA crosses above the 10 EMA
There are several ways to set this - see more here - post #2
[Opening logic condition]
MA Oscillator
The MA Oscillator crosses the Level line upward
Smoothing method - Exponential
Base price - Close
Fast MA period - 5
Slow MA period - 10
Level - 0
Use previous bar value - Yes
o (do not enter if the stochastic lines are already in the overbought territory)
For the overbought level we can use 70
[Opening logic condition]
Stochastics
The Slow %D is lower than the Level line
Smoothing method - Simple
%K period - 10
Fast %D period - 3
Slow %D period - 3
Level - 70
Use previous bar value - Yes
o both stochastic lines are heading up
[Opening logic condition]
Stochastics
The Slow %D rises
Smoothing method - Simple
%K period - 10
Fast %D period - 3
Slow %D period - 3
Level - 20
Use previous bar value - Yes
This covers the %D lines only. To check both of them you have to use two filters (too complicated)
o RSI is greater than 50
[Opening logic condition]
RSI
The RSI is higher than the Level line
Smoothing method - Simple
Base price - Close
Smoothing period - 14
Level - 50
Use previous bar value - Yes
This are the entry conditions for the long positions. In FSB is not necessary to set the short logic. It mace this automatically.
5. Exit rules
? Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade OR if RSI crosses back to 50
In FSB you can use a single exit rule. You can experiment:
o Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade
[Closing point of the position]
Close and Reverse
Close all positions and open a new one in the opposite direction
o RSI crosses back to 50
In this case you can use a closing logic condition:
[Closing point of the position]
Bar Closing
The market exit is at the end of the bar
Base price - Close
[Closing logic condition]
RSI
The RSI crosses the Level line downward
Smoothing method - Simple
Base price - Close
Smoothing period - 14
Level - 50
Use previous bar value - No
o I use here a trailing stop
[Closing point of the position]
Trailing Stop
Stop - -30
This system looks too complicated.
There are too many parameters, that can be optimized and the strategy can show very high profit.
You can experiment with the logic and indicators to gain experience with them.
