We tested the pair NZD/USD on H4 timeframe with our STS_MA_Distance_Tester and it is currently showing us that the last 3 consecutive trades are at a loss. The statistics of the strategy with a distance of 30 pips to 10 EMA show us a maximum of 4 consecutive losing trades on historical data of over 5 years. We can expect, with high probability, that the next trade will be profitable, based on the backtest.
Currently, the price is between 200 EMA and 500 EMA, which are parallel to each other and indicate a downtrend. RSI 6 period is in divergence with the price. We expect, with high probability, because of the statistics from the backtest and the Bearish divergence, that the price will bounce off the current resistance zone. Based on that, we loaded our STS_MA_Distance_Bot to open short positions when our STS_MA_Distance_Indicator shows a distance of 30 or more pips to 10 EMA. 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. So far, the bot has opened 2 short positions.
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