Internal Bar Strength Gold XAUUSD 2 hours TIMEFRAME

Internal Bar Strength Gold XAUUSD 2 hours TIMEFRAME

This strategy works on several markets but in this example I focused on gold.

The strategy is based on the Internal Bar Strength Indicator (IBS=(Close – Low) / (High – Low) * 100), and by using this indicator I’ve made a  mean reversion strategy which basically gives you a high win rate thanks to a large stop loss distance. To find out if this is good or bad you need to do some further testing.

Anyhow, the main rule is as follow:

  • Buy when the IBS closes below a certain value and exit when the price closes above yesterday’s high.
  • Sell when the IBS closes above a certain value and exit when the price closes below yesterday’s low.

Apart from the main rule, I have also added some extra stuff to boost the performance of this backtest. You can optimise all of this in the top section.

Enjoy!

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Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

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