This is my interpretation and implementation of a strategy outlined by James Stanley of dailyfx.com. The article it's based off of is found here:
http://www.dailyfx.com/forex/education/ ... Forex.html
First and foremost, you need two indicators that I created as well. These must be installed for the strategy to function.
The first is simply an average of the open, high, low and close.
The second is a high/low channel that looks back a specific number of periods and is delayed a number of periods. It takes either the high and low off the bodies or the wicks of the candles.
Now, here is the strategy.
This strategy was designed to take advantage of strongly trending pairs and during this phase of development I was tuning it to NZD/JPY so that is the example that is given. There are a lot of options in here and I will endeavor to explain them all soon.
Here is performance Jan. 1, 2012 - Jun 7, 2012 using the defaults.
Here is the performance over the same time frame with some options tweaked (will elaborate later).
I will continue to modify this code as I see fit. New versions may not necessarily be better or behave in the same manner as the older versions. They will likely contain more options though, knowing how I tend to work on things.
If anyone would feel so inclined to donate: PayPal kallen@u.washington.edu
The Strategy was revised and updated on December 11, 2018.