Back Testing Results - GBPJPY TriScreen Test 1

• Tweet

• Tweet

I just completed test number 1 of the TriScreen trade on the GBPJPY with Forex Tester.

The TriScreen trade is as follows:

• Looking for MACD (12, 26, 9) divergence on the 1 hour chart.
• Williams %R (62 period, 10/90 signal lines) has to roll out of overbought or oversold.
• Price has to be hitting a support or resistance point.  The second peak has to be equal or greater than the first.
• Looking for long wicks or twin towers at the resistance points.

Entry

Price has to be hitting a support or resistance point.  The second peak has to be equal or greater than the first.  Enter 2 positions as soon as %R rolls out of the signal areas.

Target

• Minimum 1:1 Risk:Reward ratio
• Target next support or resistance level

Stop

Above or below highest resistance or support point.

Exit

Exit one lot when price hits the target limit.  Move the stop on the second position to +5 pips.

Click here to see an example.

Here are the results:

So as you can see, this is a profitable strategy.  Here are some other results:

Click above for larger picture

As you can see on the equity curve, there was a slight change in the strategy.  The sharp improvement shown on the graph is when I started to use the two lot strategy.  This seems to work particularly well because when the GBPJPY gets into a trend, it can really move.

On to the next round of testing!

All testing done with Forex Tester – forex back testing software

If you enjoyed this article, you might also like:

1. More Testing
2. Head and Shoulders Testing
3. Forex Back Testing Software
4. Demo Trading and Back Testing
5. Testing, Testing, Testing