This strategy was explained at The Forex Day in Madrid by Lex Smirnoff in 2015. I’m Adolfo so, A-LEX will be a beautiful name for it! :-). Is explained to trade it in GBP/USD in 1 hour chart.
Since I <3 indexes like DAX or DOW couln’d wait to test it. Since March I’m doing discretionary trading on both markets in a real account, with profitable results (38,12%), first trades were made with 7% risk per trade, but I’ll no longer recommend it for you or anyone, it’s crazy!

A lot of entrance were missed by my fault, just wondering about if it’s a good moment or not…. will keep rising? or not? Low confidence took me here, and finally I can share it with you, is already automated. Enjoy it!

Requirements

.ITF file: ALEX ATB Indicator Signal (Click and get it)

Indicator code:

REM Variables
mm = Exponentialaverage[8](close)
once uma=Highest[8](high)
once umb=Lowest[8](low)
objetivo=45*pipsize

if High > mm and Low < mm then // TOuching Ema8
tb = BarIndex
ltp = mm
uma = mm
umb = mm
endif

if low>mm then //  New bullsih movement
n = BarIndex - tb
uma=Highest[n](high)
umb=mm
endif

if high<mm then //  New bearish movement
m = BarIndex - tb
umb=Lowest[m](low)
uma=mm
endif

if (uma-ltp)>objetivo and uma>mm then // buy condition
compra=1
endif
if (uma-ltp)<=objetivo then
compra=0
endif

if (ltp-umb)>objetivo and umb<mm then // short condition
venta=-1
endif
if (ltp-umb)<=objetivo then
venta=0
endif

Return compra coloured(0,128,0) as "compra",  venta coloured(220,20,60) as "venta"

Recomendations

3000 € / $ and max risk of 2% per trade.

Indicators

ExponentialAverage[8](close)
ExponentialAverage[18](close)

How it works

Firstly, is a simple trend following system.

Look for a fast price move in whatever direction, this movement must be longer than 45 pips from last touch with Ema8, and then a retracement touching Ema8 will fill our limit order and join the trend.

Fixed Stop ploss and target pprofit give us unreal vision of the strategy in the backtest. However I’ll keep trading it since is profitable for me since March, not as good as backtest results shows, of course… but very interesting… 😉

Why not?

CODE

defparam cumulateorders=false
defparam preloadbars=8
defparam flatbefore=090000
defparam flatafter=213000

mycompra, myventa = CALL "ALEX ATB Indicator"
ema=ExponentialAverage[8](close)
advance=abs(round(ema-ema[1]))
mylot=(((Strategyprofit+3000)*0.02)/30)

if not longonmarket and mycompra=1 then
BuyPrice = ema+advance
buy mylot contract at BuyPrice limit
endif
if not shortonmarket and myventa=-1 then
SellPrice = ema-advance
sellshort mylot contract at sellprice limit
endif

set stop ploss 30
set target pprofit 25

Best trading ever, Adolfo.