MT4 Forex News Indicator
Trend reversal trading strategy “Inside Bar + Pin Bar” is designed mainly for Forex and can be used on all currency pairs on any time frames. Its rules state that:
A trader should place a buy stop order at a high of the signal candle upon an “Inside Bar + Pin Bar Combo” pattern during a downtrend. A sell stop should be placed at a low of the signal candle upon “Inside Bar + Pin Bar Combo” pattern during an uptrend. The stop loss should be placed at the high/low of the signal candle with 1:2 Risk-to-Reward ratio. To define the trend we have used a combination of Fractals indicator and 3 EMAs with 10, 25 and 50 periods.
For more information please refer to https://priceaction.com/price-action-university/strategies/pin-bar-inside-bar-combo/.
For our test, we have used a Trailing Stop which is launched after a trade has started and is modified each new 1 pip of profit. From our point of view, such approach allows to maximize profit and minimize drawdown. We have run the test for 2010.01.01-2019.05.22 using Control Points modelling on EURUSD-H1, with no leverage, without reinvestment, assuming spread equals 10 ticks, with starting balance 10000. These are the main parameters of financial performance, that may allow you to evaluate whether this strategy worth your attention or not:
|ROI||# of trades||Winning ratio||Max. drawdown|
The following charts may give some possible insights on which filters to apply (time sessions, day of week limitation, trend strength threshold, overbought/oversold conditions, volatility range) to turn this strategy profitable should you decide to use this strategy in your investment portfolio:
1. Our analysis of popular trading strategy “Inside Bar + Pin Bar” during 2010-2019 has shown that it is unprofitable on most of major currency FX pairs, such as EURUSD, EURGBP, EURJPY, GBPUSD, GBPJPY.
If you decide to buy an EA, coded in accordance with the strategy and used for the test, or to make any amendments to the original strategy rules – please, feel free to contact us.
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