EURUSD Chart Analysis and Strategy Implementation
Lately I've been doing some chart analysis in the market using charts on the Daily Time-frames to identify it's trend. And slowly developing my own trading Strategy (Semi Auto-Trading Ranging Market Strategy-SATRMS)
So I have identified that the EURUSD had been ranging for the past year or two (since 2015 till to date)
So I took the highest(1.17143) and lowest(1.03402) points of the current market since it started ranging to create a Boundary for my trading . And then split it up into zones where I will have a high chance of it respecting my setup. I identified 2 zones where I can implement my Ranging strategy setup.
Zone 1 (1.17143 to 1.10965) Orange Box
Zone 2 (1.10965 to 1.03402) Yellow Box.
Then I used the Fibonacci Retracement Tool to setup my Areas of Trades in each zones
So then I did a short back testing with about a total of 73 trades lasting about 7 months.
So within 7 months I had about 73 trades.
Then I did some calculation to identify it's Win/Loss (33:40) ratio
So overall the W:L Ratio is 45.20% out of the 73 trades with an average of 1.8 Risk/Reward Ratio on each trade, not that great but overall still a positive outcome.
Looking to improve my Semi Auto-Trading Ranging Strategy along the way but for now it's alright taking into consideration that there is a higher risk/reward of 1.8 so a 45% W:L provides a positive outcome.
But this is just for a ranging market but overall I can still implement a Trend following strategy within this Setup. And implement it into multiple Currencies if it's ranging in the longer term trends.
Purpose of Strategy: To create a Trading boundary in a ranging market and setup trigger points for trades to be open(Pending Orders) within the boundaries. So it acts like a Semi Auto-Trading Strategy where you just set trigger points for trades to be opened and just re-enter the pending orders once it's triggered and the trade has been closed.(it may be fully auto-trading but I don't know how to make a Trading robot yet)
Trades may last a few days or a whole week(Depends on the market)
Doesn't need to be re-analysed unless the major boundaries are broken which helps us indicate a possible transition of a Bullish or Bearish trending market(depending on which boundary is broken, Support or Resistance)
Reason for Daily Time-frame: I find that the daily time-frame helps me identify proper long term trends in the market that are more reliable for my trading compared to the lower time-frames.
For now that's the details i can provide to help explain this strategy that I use to plot my trades.
I will be sharing another post on this showing my Areas of trade executions and P:L ratios.
P.S Just sharing my ideas on my trading :) I hope you enjoyed reading this post
So I have identified that the EURUSD had been ranging for the past year or two (since 2015 till to date)
So I took the highest(1.17143) and lowest(1.03402) points of the current market since it started ranging to create a Boundary for my trading . And then split it up into zones where I will have a high chance of it respecting my setup. I identified 2 zones where I can implement my Ranging strategy setup.
Zone 1 (1.17143 to 1.10965) Orange Box
Zone 2 (1.10965 to 1.03402) Yellow Box.
Then I used the Fibonacci Retracement Tool to setup my Areas of Trades in each zones
So then I did a short back testing with about a total of 73 trades lasting about 7 months.
So within 7 months I had about 73 trades.
Then I did some calculation to identify it's Win/Loss (33:40) ratio
So overall the W:L Ratio is 45.20% out of the 73 trades with an average of 1.8 Risk/Reward Ratio on each trade, not that great but overall still a positive outcome.
Looking to improve my Semi Auto-Trading Ranging Strategy along the way but for now it's alright taking into consideration that there is a higher risk/reward of 1.8 so a 45% W:L provides a positive outcome.
But this is just for a ranging market but overall I can still implement a Trend following strategy within this Setup. And implement it into multiple Currencies if it's ranging in the longer term trends.
Purpose of Strategy: To create a Trading boundary in a ranging market and setup trigger points for trades to be open(Pending Orders) within the boundaries. So it acts like a Semi Auto-Trading Strategy where you just set trigger points for trades to be opened and just re-enter the pending orders once it's triggered and the trade has been closed.(it may be fully auto-trading but I don't know how to make a Trading robot yet)
Trades may last a few days or a whole week(Depends on the market)
Doesn't need to be re-analysed unless the major boundaries are broken which helps us indicate a possible transition of a Bullish or Bearish trending market(depending on which boundary is broken, Support or Resistance)
Reason for Daily Time-frame: I find that the daily time-frame helps me identify proper long term trends in the market that are more reliable for my trading compared to the lower time-frames.
For now that's the details i can provide to help explain this strategy that I use to plot my trades.
I will be sharing another post on this showing my Areas of trade executions and P:L ratios.
P.S Just sharing my ideas on my trading :) I hope you enjoyed reading this post
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