As simple as it gets: EURUSD 2h ATR strength

Category: Strategies By: Wilko Created: October 5, 2017, 5:21 PM
October 5, 2017, 5:21 PM
Strategies
15 Comments

This is a really simple system in its base form. It has no filters or money management. I submit it only to show what can be done with VERY simple entry & exit rules. I’m pretty sure this could be developed further into an implementable system.

The basis is EUR/USD on 2h timeframe. It might work on other assets, I haven’t tried yet.

The system will initiate a long if there is a green body exceeding ATR(20)*2. It will exit the long on another green body exceeding ATR(20)*2, or on the 9th bar after entry, or if a short position is initiated.

The system will initiate a short if there is a red body exceeding ATR(20)*2. It will exit the short on another red body exceeding ATR(20))*2, or on the 9th bar after entry, or if a long position is initiated.

There you go, as simple as that. Good luck with your adaptations!

ATR = AverageTrueRange[14](close)

LongEntry = close - open > ATR * 2
LongExit = close - open > ATR * 2 OR BarIndex = TradeIndex + 8

ShortEntry = open - close > ATR * 2
ShortExit = open - close > ATR * 2 OR BarIndex = TradeIndex + 8

Maxpos = 1

// Conditions to enter long positions
IF CountOfLongShares < MaxPos AND LongEntry THEN
 BUY 1 CONTRACTS AT MARKET
ENDIF

// Conditions to exit long positions
If LongOnMarket AND LongExit THEN
 SELL AT MARKET
ENDIF

// Conditions to enter short positions
IF CountOfShortShares < MaxPos AND ShortEntry THEN
 SELLSHORT 1 CONTRACTS AT MARKET
ENDIF

// Conditions to exit short positions
IF ShortOnMarket AND ShortExit THEN
 EXITSHORT AT MARKET
ENDIF

 

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Filename: ATR-strength.itf
Downloads: 971
Wilko Senior
This author is like an anonymous function, present but not directly identifiable. More details on this code architect as soon as they exit 'incognito' mode.
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