Hi,

I am trying to automate a scalping strategy I have come across. I did not publish it in the strategy section since it is clearly not profitable (yet :p )

Any help is welcome as I would be happy to work together to make this strategy profitable.

The initial strategy being:

Setup: is for price to move above the lower or lower Bollinger Bands, RSI raise above the 70 line or below the 30 line and Stochastic raise above the 80 line or below the 20 line at the same time.

Long Entry: price to move below the upper Bollinger Bands( deviation 2 and 20 period), RSI (7 period ) raise above the 30 line and Stochastic > 80 at the same time.

Short Entry: price to move above the upper Bollinger Bands( deviation 2 and 20 period), RSI (7 period ) raise below the 70 line and Stochastic < 20 at the same time.

Exit: Use Trailing Stop.

As you can see, when backtesting most trades are winning but the few losses are too big. I am running out of ideas to optimize it and to mitigate losses.  The code is

DEFPARAM PreLoadBars = 100000
DEFPARAM CumulateOrders = False
//DEFPARAM FlatBefore = 070000
//DEFPARAM FlatAfter = 230000

// *** tendance courte *****************
M8=average[4,7](close) // 11
Tm8h=M8>M8[1]
Tm8b=M8<M8[1]

//************** Indicators Setup ****************

BD = BollingerDown[20](close)
BU = BollingerUp[20](close)

RS = RSI[7](close)

ST = Stochastic[5,3](close)

//*********** Strategy ***************

If High[close] > BU AND High[1] > BU AND RS > 65 AND ST > 40 AND Tm8h THEN
SELL 1 contract at market
ENDIF

If Low[close] < BD AND Low[1] < BD AND RS < 35 AND ST < 20 AND Tm8b THEN
BUY 1 contract at market
ENDIF

SET STOP pLOSS 50

//********* trailing stop function *************
trailingstartL = 10 //LONG  trailing will start @trailingstart points profit
trailingstartS = 10 //SHORT trailing will start @trailingstart points profit
trailingstep    = 5 //trailing step to move the "stoploss"
Distance        = 0 * PipSize
// SL    = 15 // STOP LOSS
 
//******************** reset the Trailing Stop value *************
IF NOT ONMARKET THEN
TS=0
ENDIF
 
//manage long positions
IF LONGONMARKET THEN
//first move
IF TS=0 AND close-tradeprice(1)>=trailingstartL*pipsize THEN
TS = tradeprice(1)+trailingstep*pipsize
ENDIF
//next moves
IF TS>0 AND close-TS>=trailingstep*pipsize THEN
TS = TS+trailingstep*pipsize
ENDIF
ENDIF

 
//******************** manage short positions *********************
IF SHORTONMARKET THEN
//first step
IF TS=0 AND tradeprice(1)-close>=trailingstartS*pipsize THEN
TS = tradeprice(1)-trailingstep*pipsize
ENDIF
//next steps
IF TS>0 AND TS-close>=trailingstep*pipsize THEN
TS = TS-trailingstep*pipsize
ENDIF
ENDIF
 
//stop order to exit the positions
IF TS>0 THEN
IF LongOnMarket THEN
IF (close - Distance) > TS THEN
SELL             AT TS STOP
ELSIF (close + Distance) < TS THEN
SELL AT TS LIMIT
ELSE
SELL AT Market
ENDIF
ELSIF ShortOnMarket THEN
IF (close - Distance) > TS THEN
EXITSHORT AT TS LIMIT
ELSIF (close + Distance) < TS THEN
EXITSHORT AT TS STOP
ELSE
EXITSHORT AT Market
ENDIF
ENDIF
ENDIF

Rapport-detaille-ProBacktest-Convergence-France-40-Cash-1E.png image_2023-08-20_114556832.png