Action Descriptio

n
(by
Algorithm)
Description
(in words)
Preparation
(what should be done before
Entering position)
From the current bar look back at the previous 2 bars and look for on of the 4 price bar patterns
1. Outside Bar
. !nside Bar
". #ey $e%ersal Bar
&. 'wo Bar $e%ersal
Each pattern should be able to be individually selected for use i.e. so if some I only want to use
inside bar on a particular pair I can just select that pattern.
Enter Position
(which condition
Should eist in
order to enter
position! how
should this
conditions be
calculated"
(ong Outside Bar) #he close of the outside bar should be hi$her than the open and hi$her that the bar
midpoint the open of the current bar should open e%ual or hi$her than the close of the outside bar
order & 'uystop order should be placed on the hi$h of the outside bar if it is not eecuted within
the net 4 bars cancel order. See picture below
!nside Bar) 'he close of the inside bar should be hi$her than both the close and the bar midpoint
#he current bar must open e%ual or hi$her than the close of the inside bar a 'uyStop order is to be
placed at the hi$h of the inside bar if the order is not hit within the net 4 bars cancel order. See
picture below
#ey $e%ersal Bar) 'he open of the key bar should be at least (pips lower than the low of the
previous bar. #he close of the key bar should be with in the low and close of the previous bar. #he
open of the current bar should be hi$her than the close of the key bar. & 'uystop should be place
on the hi$h of the key bar if it is not eecuted within the net 4 bars then cancel the order. See
picture below
'wo Bar $e%ersal) #he open of the first bar should be near the low the previous bar and the close
should be much lower and have a $ood si)e body. #he open of the second bar should be very near
the close of the first bar but both should be well below the midpoint of each bar with the close to
be very near the low 2 bar previous. & 'uyStop *rder should be place at the hi$h of the bar + if it
is not eecuted within 4 bars cancel order. See picture below
*hort Outside Bar) #he close of the outside bar should be lower that the open and lower than the bar
midpoint the open of the current bar should open e%ual or lower than the close of the outside bar &
SellStop order should be placed on the low of the outside bar if it is not eecuted within the net 4
bars cancel order. See picture below
!nside Bar) #he close of the inside bar should be lower than both the close and the bar midpoint .
#he current bar must open e%ual or lower than the close of the inside bar a SellStop should be
placed at the low of the inside bar if the order is not hit within the net 4 bars cancel order. See
picture below
#ey $e%ersal Bar) 'he open of the key bar should be at least (pips hi$her than the hi$h of the
previous bar. #he close of the key bar should be with in the hi$h and close of the previous bar. #he
open of the current bar should be lower than the close of the key bar. & SellStop order should be
place on the low of the key bar if it is not eecuted within the net 4 bars then cancel the order. See
picture below
'wo Bar $e%ersal) #he open of the first bar should be near the hi$h of the previous bar and the
close should be much hi$her and have a $ood si)e body. #he open of the second bar should be very
near the close of the first bar but both should be well above the midpoint of each bar with the
close to be very near the hi$h of 2 bar previous. & SellStop *rder should be place at the low of the
bar + if it is not eecuted within 4 bars cancel order. See picture below
+losing
open
Positions,
(
o
n
g
,ith
-rofit
#ar$et
,hen in profit and the position reaches ./0 of the take profit tar$et place a stop loss at 2.0 of
that tar$et when it reaches 1.0 move the stop to ./0 etc
(2onditio
n for
2losin$
open
-ositions!
how
should
positions
be
closed"
(
o
n
g
,ith
3oss
(
o
n
g
*ther
si$nals
(i.e. trailin$
stop"
4 bar trailin$ stop count back 4 bar and place a stop loss 2 pips below the lowest bar when
countin$ back do not count the inside bars skip to the net bar! when a new bar opens perform the
same task and move the trailin$ stop loss if able to. If due to broker stop loss restrictions place the
stop as close as possible to the net bar tar$et and move it until the net bar tar$et is hit then repeat
for each new bar
*
h
o
r
t
,ith
-rofit
#ar$et
,hen in profit and the position reaches ./0 of the take profit tar$et place a stop loss at 2.0 of
that tar$et when it reaches 1.0 move the stop to ./0 etc
*
h
o
r
t
,ith
3oss
*
h
o
r
t
*ther
si$nals
(i.e. trailin$
stop"
4 bar trailin$ stop count back 4 bar and place a stop loss 2 pips hi$her than the hi$hest bar when
countin$ back do not count the inside bars skip to the net bar! when a new bar opens perform the
same task and move the trailin$ stop loss if able to. If due to broker stop loss restrictions place the
stop as close as possible to the net bar tar$et and move it until the net bar tar$et is hit then repeat
for each new bar
Action Descriptio
n (by
Algorithm)
Description ( in words)
After Position is +losed
,hat should be done
Additional *ignals
(all other si$nals for enterin$ and
2losin$ position"
-oney -anagement for this *trategy
(chan$in$ numbers of contracts
&ccordin$ to -53"
&llow micro tradin$ for the tradin$ system /./+ (& loss is a loss but I like then to be small"
$.(E*,.
*nly one trade per pair
6a 3oss 20 (72.// 8 7./ 9 Stop :4;<8+.4= per pip
#ake -rofit 8 (
Parameter /ame Description Default 0alues
Inside 'ar
*utSide 'ar
>ey ?eversal 'ar
#wo 'ar ?eversal
4'ar Stop pips
3ots
#ake-rofit
#his is the number of pips set above or below selected stop 'ar
#rue 9 False
6ust en$ulf the previous 2
'ars#rue9False
&djustable body diff #rue 9 False
#rue9False
2
/./+
2./
1eneral Description of *trategy,
/umerical E2ample of *trategy,
Equity 3755
Risk 2%
Total Risk 75.10
$ Per Pip 3.95
Entry- topprea! 19
Entry 1.2"0"
3#ar top 1.2"23
$lose 1.230%
Pips Pro&it 9'
Total Pro&it 3'7.3%