The strategy is based on the fact that, in practice, round numbers ending with “00” are always closer to people. For example, if pair EUR/USD is traded at 1.2470 and its price is growing, most stop orders will be placed within one or two points from 1.2500, not say 1.2517. We can earn using this fact. So let’s try to.
Trading Strategy Algorithm:
1. Open one-hour chart of EURUSD, lots 0.1.
2. Draw Moving Average with the period of 200.
Buying alert (open two orders): The price is above MA and intersects the level 15 points below the “round” price.
Selling alert (open two orders): The price is below MA and intersects the level 15 points above the “round” price.
We will close our trades by StopLoss.
Having tested the above rules within the period from 2007.01.11 to 2008.01.11, we obtained the following results (Open price only):
Having optimized the inputs on the same period of time, we obtained the following result of EA operations: