The backtest with our STS_MA_Distance_Tester of the currency pair EUR/JPY on H4 timeframe, shows that the cycle of the strategy with 30 pips to 10 EMA currently has 3 consecutive losing trades. We can expect, with high probability, that the 4th trading situation will be profitable, based on the statistics of the backtest for a 6-year period.
As we wrote in our Forex Analysis from September 17, 2021, we expected a larger target for the last long position. Currently, the distance to 10 EMA is about 20 pips and we are close to having conditions for a new position with this Trading Strategy (30 pips to 10 EMA). That is why we closed the last long position from the previous trading situation for 81 pips profit.
Currently, the pair EUR/JPY is nearing the resistance zone of 3 strong MAs (200 EMA, 100 EMA, 50 EMA). The distance to 10 EMA is about 20 pips and for this we loaded our STS_MA_Distance_Bot to open a trade when our STS_MA_Distance_Indicator shows a distance of 30 or more pips to 10 EMA. We've set the robot to "long&short" mode because although we expect short positions, it is possible to have conditions for long trades as well, and whatever happens, our Trading Robot will catch it. The Bot is also set to open a position on each next H4 candle, if the conditions for distance to 10 EMA are still met.
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