Random Direction Strategy with One-ATR Stops and Targets

Summary

This example uses a random binary result to choose long or short direction on a selected weekday, with an ATR-based position quantity and exit distances. The stated concept is a deliberately simple baseline: enter in the randomly selected direction and place a stop and profit target each one ATR from the reference price. Inputs let the user set the ATR period, test year, and weekday. The accompanying description recommends comparing the approach with indicator-driven strategies.

The author reports tests covering 2018, 2019, and 2020 across 28 major currency pairs, with a win rate near one half and an eight percent standard deviation, but provides no detailed results, costs, or benchmark methodology. Those claims cannot be independently assessed from the text. The script also limits strategy entries to a chosen year, and its plotting condition uses day of month while the trade condition uses day of week, so the displayed arrows may not consistently represent trade signals. The snippet should be treated as an illustrative baseline, not evidence of a durable edge.

Key ideas

• A random result determines whether the strategy enters long or short on the selected weekday.
• The example scales quantity using ATR and sets stop and target distances at one ATR.
• The author reports tests across three years and 28 major currency pairs.
• The document gives no detailed backtest data, cost assumptions, or benchmark comparison.
• The plotted arrow condition differs from the weekday condition used for entries.

Tags

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