Backtest Dan Cara Scalping Forex Menggunakan Smart Money Concept Lux Algo
Smart Money Concept and Scalping Strategy Backtest
Introduction to Smart Money Concept
- The video introduces the Smart Money concept from Lux Algo, focusing on backtesting a scalping trading strategy using this concept.
- Emphasis is placed on understanding the effectiveness of the indicator through backtesting, which will help in refining trading strategies.
Key Notes on Backtesting Data
- Important notes for backtesting include:
- Open positions should only be made when candlesticks enter an order block (either bullish or bearish).
- New positions must not be opened until previous entries have hit their take profit or stop loss levels.
- The backtest uses a timeframe of 15 minutes (M15), and reversal signals from candlesticks must be observed before opening new positions.
Entry Strategies for Buy and Sell
Buy Entry Strategy
- Steps for entering a buy position include:
- Wait for a bullish order block to form and then wait for the candlestick to return to that area.
- Look for reversal candlestick patterns like bullish hammers before entry.
- Place stop loss below the order block or below the last closed candlestick.
Sell Entry Strategy
- Steps for entering a sell position include:
- Wait for a bearish order block to form and then wait for the candlestick to return to that area.
- Identify reversal patterns such as doji or hammer candles before making an entry.
- Set stop loss above the order block or above the last high candlestick.
Results of Backtesting
- The backtest was conducted over 50 trades from April 1, 2023, to May 19, 2023.
- Key results included:
- A winning streak of 24 trades with only two losses.
- Overall win rate calculated at approximately 80%, with total profits reaching up to 2281 pips during testing.
- Largest profit recorded was 145 pips, while maximum loss was 92 pips.
Profit Analysis Based on Lot Size
- Profit potential based on different lot sizes includes:
- Trading with 0.02 lots yields approximately 45.62 USD in profit.
- Trading with 0.1 lots could result in about 228.1 USD profit.
- Using 0.5 lots, potential profits could reach around 1140.5 USD.
Indicator Settings and Tips
- Instructions are provided on how to set up indicators effectively:
- Adjust settings by selecting "pressure" mode and modifying styles/colors as needed.
- Disable "show swing structure" since it’s not necessary for scalping techniques; adjust internal order block labels accordingly.
Enhancing Indicator Accuracy
- To improve accuracy when using indicators:
- Monitor angle changes in candlesticks as they form; strong blocks often start with engulfing patterns indicating strength.
Disclaimer