This is gonna be almost like a Klondike game, but you can actually make money with it.
- On Friday you must close your open position unless the market is closing on a weekly high / weekly low.
2. Over the weekend you must fabricate the two last candles. They would be the last weekly high/ low / close and the prior week’s 3 values unless there was a shaven candle (in this case you combine it with the following week) or an inside week – in this case the last candle would remain the one over, but the close would have to be rolled over to the next one.
3. The software derives the candle color from the relative close in the range.
4. If the last fabricated candle was red, you attempt to sell, if it was green, you attempt to buy in the following manner:
you wait till the price trips one of the play percentages and prints an hourly low / high beyond it. You place a buy / sell stop at the gray line thus likely sparing yourself the draw down bit that would come with a limit order.
5. If you don’t get a fill at that level, and price continues to another trip wire, so be it.
6. Sizing is to be calculated from the current equity and bet 20%, 50% or 80% of your maximum risk at the trip wire that is being courted with.
As an exercise, the current courting is happening around the 50% level, and so your sell stop order should be at 1.2179 (gray number on the right).
Yes, I was excited to make this routine a reality after inventing it during work. It took me 2 hours to code it and make the blog entry for it. Very satisfied, especially that I have made EAs that place limit orders in a similar fashion, you can generate/plug in the level, but they would only place the pending stop order out after the level aimed for gets exceeded first. Also, this system could be applied to any other instrument.
& now there is the ghost of the current weekly candle as well