EUR/USD Two-Hour Strategy Using Large ATR-Relative Candles

Summary

This document outlines a basic directional system for EUR/USD on a two-hour chart. It opens a long position after a bullish candle whose body exceeds twice the ATR, and opens a short after a bearish candle whose body exceeds the same threshold. A position exits on another qualifying candle in its direction or after the stated time limit; an opposite signal is also described as an exit condition. The example code limits exposure to one position and uses market orders.

The author presents the rules as a starting point, without filters or money management, and says applicability to other assets has not been checked. The prose refers to ATR(20), while the sample code calculates ATR with a 14-period setting, an internal inconsistency that should be resolved before implementation. No backtest, performance data, transaction-cost analysis, or risk controls are supplied, so the text does not establish profitability or robustness.

Key ideas

• The system enters in the direction of a candle body larger than twice ATR on a two-hour EUR/USD chart.
• Positions exit on another qualifying candle in the same direction or after the specified bar limit.
• The description says ATR(20), while its sample code uses a 14-period ATR.
• The system has no filters or money management, and no performance evidence is provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.