In the 74th issue of ForTrader.org we will explore and automate a trading strategy called Skyplay. This is a multicurrency indicator tactic, whose author claims that 70% of its trades are profitable. Let's see if this is true.
Skyplay trading strategy settings
For our work we will need currency pair EURUSD or GBPUSD, MT4 terminal, powered from 07:00 GMT to 14:00 GMT, a set of indicators and H1 and M5 timeframes.
There will be several indicatorsSupertrend(20), Breakout box, EMA(20) (yellow, built on the highs), EMA(20) (red, built on the lows, MACD, True Strength Indicator, Time Zone Trading Indicator. Some of them: Supertrend, showing the trend direction, and Breakout box, orienting in the trading range, we put on the hourly chart, and the rest - on M5.
Skyplay strategy rules of operation
As is often the case in MTF strategies, senior timeframe we use to determine the trend: if the Supertrend indicator is green, then we work only to buy, if red - to sell. M5 is used to search for entry signals.
So, purchase transactions We open if the 5-minute chart MACD gives a signal to open Buy (the green line above the red), the value of the indicator True Strength is greater than 0. When the candle closes above the yellow EMA(20), we buy at the opening of the next candle.
A bargain for sale The Sell order is opened in the opposite case: if on the 5-minute chart the MACD gives a signal to open a Sell (green line below the red), the value of the True Strength indicator is less than 0. When the candle closes under the red EMA(20), we sell at the opening of the next candle.
In doing so, we use stop loss 25 pips, Take profit 20 pips.
The rules are quite simple. Let's see how profitable they are.
Testing Skyplay Expert Advisor
Since the rules are structured, the programming part was not too complicated. In addition, the fact that we open a trade at the opening of a new candle has greatly simplified our testing, because we can use the fast method with a clear conscience. As a result, we have an EA with the following parameters:
SuperTrend indicator settings
xPeriod = 20
xSlope = 2.0
True-strength-index indicator settings
First_R = 5
Second_S = 8
MACD indicator settings
fast_ema_period = 12
slow_ema_period = 26
signal_period = 9
MA indicator settings
periodma = 20
Setting the runtime
starttime = 7
stoptime = 14
And the following test results:
As we can see, 70% of profitable trades is a very strong statement on the part of the author, although perhaps things could be a bit better with other variants of protective orders. Unfortunately, we do not have the resources to perform optimization of such a robot, so we leave the finalization to the reader. But we will be happy to help you modify the Expert Advisor according to your ideas and discuss its performance.