Forex

We introduce I Know Things, a collection of trading strategies for the Forex market. These strategies encompass trend following, reversals, scalping, news trading, etc., and focus on the most liquid pairs. No grid nor martingale.

Trades can last from a few minutes to a few weeks. We have given special consideration to reducing the impact of slippage and large spreads, making these strategies particularly suitable for proprietary trading firms. The strategies are coded in an expert advisor in MQL5 langage.

One of the most important strategies in the Forex section is the breakout strategy. It aims to capture sustained price moves by entering trades when an asset breaks beyond well-defined support or resistance levels, which are identified via local extrema (peaks and troughs) in the price series.

The following figure illustrates extrema detection: 

Parameters :

• dt: window length - time distance on each side of a candidate extremum

• dh: height threshold - minimum price difference required between the extremum and its neighbors

Local Maxima Criteria:

• Price at time T1 is the highest within the window [t–dt, t+dt]

• There exists at least one bar within the window such that the price difference ≥ dh

• The maximum “persists” until a new higher maximum appears (T2)

Local Minima: Defined symmetrically by reversing the inequalities.

Selection at Trade Time: Among all valid extrema in a retrospective window, choose the weakest resistance (lowest maximum) for long trades—or the strongest support (highest minimum) for shorts. Stops are placed at the identified extrema, with a fixed take-profit level and a trailing stop-loss

Example settings for gold (XAUUSD):

• Data timeframe: 5-minute bars

• Window length (dt): 720 bars

• Height threshold (dh): 20 USD

• Take-profit: 20 USD

• Trailing stop-loss: 10 USD