I review a profitable system called Explode on the Double D. This trading strategy uses both hidden and regular divergences, multiple Exponential Moving Averages (EMAs), and volume to provide entry signals. In addition to giving the exact entire criteria I go over the precise Stop-Loss, and the multiple Take-Profit levels. Then I test is 213 times in a row, and break down the results and equity curve. Followed by my Trader’s Landing score. And finally, this installment concludes with a couple of ideas on improving and optimizing this strategy.
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By testing indicator-based trading strategies we are able to learn and understand a system’s performance by using a repeatable and clearly defined trading criteria that has a predictable performance through a series of many setups. These trading systems can be ported over to many instruments such as Forex (FX), Cryptocurrency (Crypto), Options, Stocks, or anything that has a chart and a significant amount of volume and market participants.
If you are looking for trading systems to test out on your own here is a playlist of systems that I like: https://bit.ly/SystemsILike
WARNING: Be sure to do exhaustive backtesting and forward testing before you actually start trading real funds. For your convenience below is a link to the official Trader’s Landing backtesting spreadsheet and tutorial video.
See a trading system you would like tested on this channel? Be sure to let me know, including links where you found it, and any other pertinent information. In many ways you are the eyes and ears of this channel.
Timestamps:
00:00 – Start
00:27 – Indicators
00:58 – Long Examples
02:12 – Short Examples
03:23 – Test
03:36 – Testing Results & Equity Curve
05:04 – Optimization
System Specifics
Instrument: EUR/USD & USD/JPY
Time Frame: 1-Hour Candles (H1)
🏆 Trader’s Landing Score: 9
Indicators
200 Period Exponential Moving Average (EMA)
Settings: Default
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000592270-exponential-moving-average/
50 Period Exponential Moving Average (EMA)
Settings: Default
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000592270-exponential-moving-average/
ATR Bands
Settings:
ATR Multiplier Upper: 2
ATR Multiplier Lower: 2
By: AlexanderTeaH
Link: https://www.tradingview.com/script/uTetNB3s-ATR-Bands/
Waddah Attar Explosion V2
Settings: Default
By: shayankm
Link: https://www.tradingview.com/script/d9IjcYyS-Waddah-Attar-Explosion-V2-SHK/
Long Entry
Price Above the 200 EMA.
50 EMA Above the 200 EMA.
Price Touches the 50 EMA.
Hidden Bullish Divergence on the Stochastic.
Green Bar on the WAE Above Both Lines.
Enter on Close Above the 50 EMA.
Short Entry
Price Below the 200 EMA.
50 EMA Below the 200 EMA.
Price touches the 50 EMA.
Hidden Bearish Divergence on the Stochastic.
Red Bar on the WAE Above Both Lines.
Enter on close Below the 50 EMA.
R:R
50% – 1:1
50% – 1:2
Where to place stop-loss
For Long’s: 2 Times ATR Below Entry Candle.
For Short: 2 Times ATR Above Entry Candle.
Indicators tested on this channel so far:
ATR Bands, Donchian Channels (DC), Double Exponential Moving Average (DEMA), Dynamic Structure Indicator, Exponential Moving Average (EMA), Heikin-Ashi Candles, Ichimoku Cloud, Money Flow Index (MFI), Interstellar Buy/Sell, Interstellar Trend, Multi Timeframe EMA, QQE (Qualitative Quantitative Estimation) Mod, Relative Strength Index (RSI), SSL Channel, SSL Hybrid, Stochastic (STOCH), Stochastic RSI, SuperTrend STRATEGY, Time Segmented Volume (TSV), VuManChu Swing Free, Waddah Attar Explosion V2, Weighted Average Price (VWAP), Williams %R
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⚠️Disclaimer: This content references opinion and is for information purposes only. Not intended to be investment advice. Seek a licensed professional for investment advice.
