Giraffe LSV Giraffe Strategy Advisor
The "Giraffe" trading strategy does not use technical indicators to generate trading signals. Market entry points are determined by a combination of Japanese candles in a particular pattern. It is suitable for those traders who can not devote a large amount of time to trade in the foreign exchange market.
Input parameters
- Currency pairs: GBP/JPY, EUR/JPY, CAD/JPY
- Time frame: W1
- Trading time: beginning and end of trading week
- Risk management: after calculating the stop-loss, choose such a volume of lot, that the risk was not more than 2-5% of the deposit per trade
Signals indicating the opening of a long position
- after a downward candle, an upward candle was formed;
- A buy trade opens at the beginning of the next candle.
Signals indicating the opening of a short position
- After the upward candle a downward candle was formed;
- a sell trade opens at the beginning of the next candle.
Additional strategy conditions
- Candlesticks without a body (doji) do not fit the conditions for opening a position, because they signal uncertainty in the market;
- The gaps formed on the price chart are ignored.
Setting Stop Loss and Take Profit Orders
- the installation of a stop-loss order, as part of the trading strategy "Giraffe", is not provided;
- the Take Profit order is exposed in the fixed size of 500 points. If at the end of the week the take profit level is not reached, the transaction should be closed at the current price.
Giraffe and Giraffe LSV Advisors
The "Giraffe" non-syndicator trading strategy appeared to the participants of the forum of traders forexsystemsru.com A great help in creating a trading Expert Advisor, which was authored by AlexeyVik and lsv107.
At the heart of the trading advisor Giraffe LSV is the same strategy, but with the addition of ATR as a filter and using the trailing stop function.
Parameters of the Giraffe LSV trading robot
- Sign of an ECN account - If enabled, the order is first opened and then modified (Stop Loss and Take Profit are set); if disabled, the order is opened immediately with stops.
- Use partial closure - If enabled, then after the price has passed in the positive direction of the specified distance, a part of the lot is closed.
- Which part of the lot to close (%) - the part of the lot that we are going to close as a percentage of the initial lot (let's say we have an order with 1.0 lot, we close 50%, i.e. 0.5, and the remaining 0.5 remains in the market).
- Distance in points to close - the distance in pips that the price must pass in the positive zone for a partial close to occur.
- Trawl type - here you can choose the type of trawl: by High/Low range, which is determined by the number of candles; by the ATR indicator.
- Trawl timeframe - common for both types of trawl, which specifies the timeframe for range or ATR calculations
- Allow trawling in an unprofitable area - if enabled, the trawl starts working even before the trade turns to profit (common parameter for both types of trawl)
- Number of candles for High/Low trawl - range in candlesticks, on which the maximum or minimum value of the price is searched.
- ATR period - ATR period (the recommended value is 14)
- Calculation of ATR only on the formed bar - Since we are working on higher timeframes, you can not wait until the candle closes to calculate the ATR, and to calculate the value on the current bar.
Testing Giraffe LSV Expert Advisor
Back-tests of the Giraffe LSV using the author's customization set showed the following results:
The results of testing Giraffe LSV on the history showed quite decent results, despite achieving a drawdown of 55%. However, the level of risk in percentage in the parameters of the Expert Advisor can be reduced or enter the market with a fixed lot.
At the moment, the online testing of the Expert Advisor continues, as well as work on its improvement. We invite everyone to to test and finalize the Giraffe LSV Expert Advisor.