Volatility-Scaled EURUSD Entries with Configurable Stops

Summary

This document describes a volatility-based trading indicator or expert-advisor setup for EURUSD. It estimates volatility over a configurable bar period using either high-low ranges or open-close movement, with simple or linearly weighted smoothing. A multiplier sets the movement required to open a trade, and an optional stop loss can be defined as a fraction of that movement. A visualization setting controls whether movements are plotted.

A reported one-hour EURUSD test covers 2008 to early 2009 and uses a multiplier of 6, a 24-bar period, high-low volatility, and no stop loss. The report lists 78 trades, a profit factor of 1.65, net profit of 35,223.60, and maximum drawdown of 1.93%. These figures are limited to one historical test with 90% modeling quality and chart mismatches; they do not establish robustness or live performance. The author flags large drawdowns as a concern and invites suggestions for improvement.

Key ideas

• The entry threshold scales recent volatility by a configurable multiplier.
• Volatility can be calculated from high-low ranges or open-close movement, with two smoothing choices.
• An optional stop loss is expressed as a fraction of the movement used for entry.
• The document reports a single historical EURUSD test with 78 trades and a 1.93% maximum drawdown.
• The test’s modeling quality and chart mismatches limit the strength of its evidence.

Tags

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