Welcome to this third and final part in the series in which I give you an over-the-shoulder look into a trading strategy development process. I test and develop a trading strategy to show you each step of the process. By the end of the development I hope to have a useable strategy, something that you may also consider trading.

In the first part of this series I outlined the rules of the strategy and began the development stages. If you haven’t seen that video yet then you can see it here: PART 1

In the second part I looked into how trading each day of the week effected results. Then looked at the duration or time window we could take the trades. Lastly I introduced a previous day filter. Looking at what happened if the previous day was a white or black candle. If you haven’t seen that one then you can watch it here: PART 2

In this third part of the development I look at the level at which the breakout entry will occur. I use a multiple of the High to Low range. And lastly, once I have some results I am happy with, I go on to apply the strategy to some out of sample data. This is to see how the strategy would have worked in unseen forward data.