EURUSD (4H) backtest : 69% Win rate (12.75 R)

30 oct. 2020

Detailed backtest results
prnt.sc/v9wldr
Win/Loss ratio : 300%
Net R : 12.75 R across 13 trades
Avg R / trade = 0.98
Avg R / winner = 1.42


Icons on the chart
Thumbs up : Trade was a win
Thumbs down : Trade was a loss
Circle with a cross : Trade was breakeven
Cross : Did not take the trade due to one or more trade qualifiers
Bug : I could not understand how to trade, do avoided trading


Trade qualifiers
$ icon : DXY was either supporting the trade direction (and we took the trade as win/loss/BE), or DXY was not supporting the trade direction (and trade was not taken)
Dollar bill icon : Liquidity was present behind the stop loss


Strategy
Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders
AND
Liquidity in form of equal highs/lows should not be present behind the stop loss
AND
Since the pair is highly correlated to DXY, the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation


Risk management
Reduce 50% at 1R => Trade becomes risk free
Reduce further 25% at 2R AND move SL to break-even
Close trade at 3R
Winner = 1.75R


Variables
Avg winner = 1.75R


PS : Please excuse the busy chart!