Fading the Zeros backtesting

[mcbgun]

Hi guys,

Firstly many apologies if I seem like a complete novice but I have no idea about programming whatsoever!

I do have a strategy which I've started to use live and which does work but I could do with crunching some numbers just reinforce my belief in the system...

Not sure if links to external sites are allowed but this explains the system in any case:

http://www.forexstrategiesresources.com/trend-following-forex-strategies/22-fading-the-double-zero/

Long
1. First, locate a currency pair that is trading well below its intraday
20-period simple moving average on a 10- or 15-minute chart.
2. Next, enter a long position several pips below the figure (no more
than 10).
3. Place an initial protective stop no more than 20 pips below the entry
price.
4. When the position is profitable by double the amount that you risked,
close half of the position and move your stop on the remaining portion
of the trade to breakeven. Trail your stop as the price moves in your
favor.

Short
1. First, locate a currency pair that is trading well above its intraday
20-period simple moving average on a 10- or 15-minute chart.
2. Next, short the currency pair several pips above the figure (no more
than 10).
3. Place an initial protective stop no more than 20 pips above the entry
price.
4. When the position is profitable by double the amount that you risked,
close half of the position and move your stop on the remaining portion
of the trade to breakeven. Trail your stop as the price moves in your
favor.

Short Example

In a nutshell if a market hits the 00 level and is trending upwards...wait for it to go say 10 -15 pips above the 00 level and then retrace back down....your entry point is at 05, your stop loss at around 25....you then let the trade run for double your risk so 40 pips....when you reach the 40 pip mark which will be 65, you then close half the position to break even and trail stop by 20 pips...

Another requirement is for the price to be say 20+ pips above (for short) or 20+ pips below (for long) the 20 SMA. The link above describes it better than I can but I've tried my best lol!

Again apologies for the lack of knowledge but this is a really good, simple strategy that I'd like to review.

Can anyone help? I've just installed Ninja Trader so any help implementing the solution into the program would be much appreciated!

NB: If its possible I'd like to implement my money management strategy into this also....simply.. stake size of 1% of bank

Cheers!

Mcbgun

[NinjaTrader_RyanM1]

Hi Mcbgun,

Welcome to our forums here. We're willing to help point you in the right direction if you have a specific question on how to accomplish something. We do not custom code your strategy from a list of requirements like you have posted. Hopefully a community member could offer to help get you started with it.

For custom script development you could always consider hiring one of our 3rd party NinjaScript consultants who can create this strategy to your specifications:

http://www.ninjatrader.com/partners#NinjaScript-Consultants

If this is something you plan to create on your own, start with the basics, creating your strategy with the strategy wizard.

http://www.ninjatrader.com/support/helpGuides/nt7/strategy_wizard.htm

Once you feel confident in the type of expressions you can create in the strategy wizard, unlock the code to provide more flexibility and control.

[mcbgun]

Hi Mcbgun,

Welcome to our forums here. We're willing to help point you in the right direction if you have a specific question on how to accomplish something. We do not custom code your strategy from a list of requirements like you have posted. Hopefully a community member could offer to help get you started with it.

For custom script development you could always consider hiring one of our 3rd party NinjaScript consultants who can create this strategy to your specifications:

http://www.ninjatrader.com/partners#NinjaScript-Consultants

If this is something you plan to create on your own, start with the basics, creating your strategy with the strategy wizard.

http://www.ninjatrader.com/support/helpGuides/nt7/strategy_wizard.htm

Once you feel confident in the type of expressions you can create in the strategy wizard, unlock the code to provide more flexibility and control.

Hi and thanks for the reply...

Ok so where do I post this in order to get some help from the community? Just need some pointers in the right direction from everyone and hopefully I can get it all up and running!

Cheers

[NinjaTrader_RyanM1]

The forum category here is fine and anyone is welcome to reply. You'll get the best response when you share what specific issues/questions you're having creating this strategy.

[mcbgun]

The forum category here is fine and anyone is welcome to reply. You'll get the best response when you share what specific issues/questions you're having creating this strategy.

Erm...well I guess its just how to get the strategy incorporated into ninja trader...I just want to backtest it offline to see which forex markets it worked best on and success rate etc..

Cheers