The team of GuideTrading.net is working to test and improve the trading strategy in the binary options and forex online market, with weekly and daily charts.
We started some tests and one in particular that has been very interesting. Here's the overview:
- Initial capital of 5000 €
- Lot fixed to 0.05
- StopLoss of 200 pips and take profit of 250 pips that is 2% risk on each position and a risk/reward ratio of 1:1.25
The risk/reward ratio will then be improved by the Expert Advisor during our trading session on Daily charts with the management of the following functions:
- total profit control
- total risk control
- Break Even
- Trailing Stops and Trailing Profits
The test carried out is referring to the period going from January 2009 to March 2014 (ie more than 5 years of testing). This period can be considered very valid because the EURUSD has passed several stages of market fluctuations with over 1000 pips.
- Final profit of EUR 2 915 (58.3 % or 11.66% per year)
- DD maximum of 25.47 %
- Operations with Profit 80.66 %
- Operations Loss 19,34 %
The results obtained reflect high quality forex signals on EURUSD and security of the StopLoss, that is appreciated by Daily traders.
The same test performed with a 4% risk on each position and Risk/Reward 1:1 gave similar results:
- Final profit of EUR 4190 ( 83.8% or 16.76 % per year)
- DD 34.2 % of the maximum
- Operations with Profit 80.39 %
- Operations Loss 19.61 %
The difference in the Risk / Reward from 1:1.25 to 1:1 has affected the results in terms of keeping DD almost aligned % of positions in relation to the total gain.
Want to learn how to trade online? You do not have the experience or time to Trading?
We made an online trading strategy acceptable risk. If you are interested you can write to us at email@example.com