This thread will be dedicated to back-testing Auslanco-GBP/JPY Strength Indicator strategy based on my own rules. I will eventually be testing this strategy In my live account. I will also try to analyze trades live as they happen when my schedule permits.

I would like to start by thanking Auslanco for his amazing contributions to this forum. I will be using auslanco’s strength indicator strategy with my own rules.

Summary of my understanding based on my 1H chart above: Using 4h chart determine Bear or Bull trend using QQE Strength Indicator. If green is below purple trend is bearish. If green is above purple trend is bullish. The red line in relation to the QQE SI does not matter on the 4h chart….all we are looking for is the cross of the lines indicating trend change. We can however use the angle of the lines to determine the strength of the trend. If the trend on the daily chart lines up with the 4h and 1h then we are looking for 300 pips. If just the 4h and 1h line up we are looking for 200 pips. In a bullish trade the stop loss is always 100 pips below the price where the green line on the 1h QQE SI crosses the red 50 line. Vice versa for bearish trade.

After determining a bullish trend on a 4h chart we need to make sure the 4h candle has formed above the Gann HiLow Activator line shown above in gold. If the 4h candle directly above where the QQE green line crossed the purple line (forming our bullish trend) has not formed above the Gann line we wait for the next 4h candle to form above before continuing to the 1h chart for confirmation.

On the 1h chart we first confirm our bullish trend by making sure the green line has crossed above the purple line on our QQE indicator and that the green line has crossed above the red 50 line. The exact spot where the green line crosses the red line in a bullish trend is where we are looking to buy. Before we can open our buy trade we need to make sure the 1h candle has crossed above the Gann line. Our entry will be the beginning of the second (confirmation) candle after the cross-over candle has closed. The closer our entry is to the 1h 5sma the better the entry.