The reason behind developing this EA strategy is that I’m a novice in trading, eager to learn and explore more. This strategy is based on Bollinger Bands, Keltner, and Stochastic indicators, applied for counter-trend trading on a 1-hour timeframe. I recognize this as a learning process and aim to share and exchange insights with others, fostering mutual growth.
The motivation for creating this strategy stems from a passion for trading and a desire to explore. Despite being a beginner, I aspire to delve deeper into the market using this multi-indicator counter-trend trading strategy. I’m open to guidance and suggestions, willing to share my learning journey, and looking forward to engaging with fellow traders for mutual improvement.
This article will delve into “Multi-Indicator Counter-Trend Trading,” validating its practicality and effectiveness in trading through detailed strategy overviews, backtesting, and results. I aim to share insights and information regarding this trading method while welcoming feedback, whether it’s correcting mistakes or offering guidance. Such exchanges will aid us in collectively exploring the strengths and potential challenges of this trading strategy, enhancing our competitiveness in the trading market.
Strategy Description
Let’s first explain the buy conditions, which are carried out in stages. After the first stage is met, we will wait for the second stage condition. If that is also met, we will execute the order.
First stage condition:
- Bollinger Bands crosses with Keltner Channels
- The close price of the previous candle is below the Bollinger lower band
- KDJ Index is below 20
Second stage condition:
- KDJ Index is above 20
- Satisfies the defined candlestick pattern
- The close price of the previous candle is above the Bollinger lower band
Backtesting Validation
The backtesting time span of EUR/USD is from early 2017 to end of 2021. The spread is set to 20 pips on the EUR/USD H1 timeframe for validation.
Strategy Review
Although I am not very familiar with the strategy and MQL syntax, the backtesting results show it is profitable. However, after running it for several years, I noticed the profitability was low, even somewhat concerning.
I will share the file below, welcome everyone to study and discuss together.
Look forward to sharing and learning more with you all.