Forex Trading Open Secrets: Euro Dollar Apex (Type 2) Trading Model

By Lawrence

No market moves in a straight line. Most of the time strong directional moves will result in pullbacks. Euro Dollar Apex (Type 2) Trading Model is a counter-trend strategy taking advantage of that fact with very good consistent results. With about two third winners and low drawdown, it is a very reliable trading setup to lean on.

The Performance

Following is the 24 hour chart of euro dollar with bottom panel showing the net dollar gain based on a small lot ($10000) since early 2003. 2 pips spread discount is taken into account for all trades.

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  • MidKnight October 20, 2012 at 9:49 pm

    Hi Lawrence,

    Thanks for sharing this. I coded it up and much to my surprise the results actually degraded when I added the day of week filters. Maybe I made a mistake somewhere in my code of the other conditions but I cannot see it…..The range filtering helped a lot. I was incredibly surprised that this short-only model worked so well!

    You say:
    “This model is one of the first ones I developed with concepts I discovered from STOPD. It is a great example how the range of the reference period can be used to improve the signal strength. In this particular case, it is the major driver turning the short setup from a good signal into a great one.”

    What is the range of the reference period? prior bar? If so, I fail to see how that relates to STOPD – maybe you could elaborate a little – thanks a bunch!

    All my best,

  • Lawrence Chan October 21, 2012 at 9:23 pm

    Weekday filter – you need to match the Athens time to get the weekday effect.

    The range – using the previous session range because it is the lower timeframe (intraday) has to initiate the change in trend, pure STOPD application where the higher timeframe is in control =)

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