This is the third and final part of this series in which I test an outside bar strategy found on the internet for free, on USD/JPY. In the first part I showed you the rules and then began testing the best time period of the day to take the trades.
The performance was pretty terrible. If you haven’t seen that yet you can watch it here: Part 1
In the second part I looked at the stop loss and take profit levels. After those I introduced a different type of exit. Unfortunately I still couldn’t make this strategy work well enough. Part 2
In this final part of the video I continue using the new exit and try to find the best times of the day to trade. Then I introduce some new filters taken from the daily timeframe. Lastly I put the strategy to test using some out of sample data. Data more recent than the data used to originally test and develop the strategy, to see how it performs going forward.
Finally I conclude with my thoughts on this strategy and this entry signal as a whole.