Scalping strategy “Bali” is a popular trading strategy, mainly for Forex and is optimized for usage on EURUSD currency pair, on 1 hour time frame. Its rules state that:
A trader should open a buy trade when a bar closes above Trend Envelopes indicator and at the same time the close price of the bar is above Linear Weighted Moving Average. In addition, DSS of Momentum indicator should head up and be above its signal line. Sell trades are taken upon opposite market conditions. After a trade is placed, a stop loss of 25 pips and a take profit of 50 pips should be set.
For our test, we have modified exit rules to use a Trailing Stop of 25 pips which is launched after a trade has started and is modified each new 1 pip of profit. From our point of view, such approach allows to maximize profit and minimize drawdown.
We have run the test for 2010.01.01-2018.07.01 using Each Tick modelling on EURUSD-H1, with no leverage, without reinvestment, assuming spread equals 10 ticks. These are the main parameters of financial performance, that may allow you to evaluate whether this strategy worth your attention or not:
|ROI||# of trades||Winning ratio||Max. drawdown|
The following charts may give some possible insights on which filters to apply (time sessions, day of week limitation, trend strength threshold, overbought/oversold conditions, volatility range) should you decide to use this strategy in your investment portfolio:
If you decide to buy an EA, coded in accordance with the strategy and used for the test, or to make any amendments to the original strategy rules – please, feel free to contact us.