Can someone please backtest this and we can put it to rest ? Use a Donchian entry to get in (use 200 tick bars) - 4 higher highs in a row to go long, 4 lower lows to go short. Exit rules: 3 tick stop order to take profits 2 tick stop loss order Then try the same with a RANDOM ENTRY. If you get a positive 1/2 tick per trade from either of these, I'll be surprised.
I don't dispute that. I am guessing the above strategy will win only 30% of the time at the best and likely not to be profitable. Reasons: frequent losses due to tight stop and using a fixed profit target....which eliminates any big wins. The age old issue with systems trading is: how to determine the optimal stop loss. No doubt the win% will go up if you set the stop loss to 2x the profit target. But that doesn't guarantee a winner. This strategy as written is likely to be a low risk one....but that doesn't mean you can't lose a heckuva lot of money over time with it.