Heads, go long. Tail, go short. Stoploss at 1 ATR, and Take profit at 1 ATR too. 1:1 risk to reward ratio.
After backtesting 2018, 2019, and 2020 with 28 major currency pairs. We are getting close to a 50% win rate with an 8% standard deviation.
Believe it or not, this simple performs better than lots of the popular indicators out there.
Don't believe me? Test it out yourself!!
Use this as a baseline for your backtest and expose all your other crappy indicators :)
HOW TO USE:
As an indicator: 1. Use a daily chart 2. Green arrow below chart, go long, set a stop-loss at 1 x ATR, and take profit at 1 x ATR 3. Red arrow above chart, go short, set a stop-loss at 1 x ATR, and take profit at 1 x ATR
As an indicator: 1. In setting, set a year to test (default to 2020) 2. Go to the strategy tester and observe the stats
P.s. You can also set the period of the ATR to another value other than 14 periods.