023: Chandelier (Backtesting in EURUSD)

I've finished watching and reading very interesting stuff from the DTFL website (go check them out!), so here I am, backtesting it in the H1 EURUSD chart (from September 2014 to present, but I'll just present the ones from July 2015 to present since it's quite long). The brown lines represent the major cycle for 3-5 days, with the yellow circles showing the bank manipulation points and the orange lines the mini-cycles.

Of course, the 1-2-3 lines are arbitrary, I have no idea if I'm doing it correctly like the guys there in DTFL, but I'm confident that I've encircled the bank manipulation points correctly since I could verify them with the volume below-- they are the market makers since banks comprise 75-80% of the fx market. Why? Here's the ranking from Wikipedia:

I don't believe anymore that fx prices can't be manipulated since we've already heard news about some of these banks' unfair activities, especially in the 'Cartel' chatrooms.

I did sense the power of these banks already before as mentioned in my entry #004, but I still continued to innocently believe that forex market is so huge to be influenced by a group of people. I was wrong, so wrong. If I've read DTFL before and learned its strategy, I might have also prevented my loss here in GBPJPY lol!

While doing the backtesting, couldn't help but listen to and sing along in Sia's 'Chandelier' lol!

Checking out September to figure out which 1-2-3 'cycle' we are in:

Since the 1-2-3 lines are arbitrary, I might be at risk in curve fitting them. The best way to test if I've really understood it and if I can make the strategy work on my own is to test it at live prices. Will be posting results here soon on my recent trades in EURUSD and USDCAD.

#technical #focus #forextrading #strategy #test #reality #EURUSD