Harmonic price patterns are precise, requiring the pattern to show movements of a particular magnitude in order for the unfolding of the pattern to provide an accurate reversal point. Although a pattern may emerge that looks harmonic, if the specific Fibonacci levels do not align, the pattern will likely fail. However patient traders can use this to their advantage to trade high probability setups.
The Ultimate Breakout System uses four different underlying trend modifiers to determine the direction of the market. Breakout confirmations are generated within price data and five various indicators within uptrend and downtrend conditions. The system is equipped with an indicator, Expert Advisor and multi-timeframe dashboard for MetaTrader 4 & 5.
In order to vet a potential trading strategy, it is imperative to ensure that the results obtained from optimizations and strategy tests are a true reflection of the EA. As seen in the image below, the default strategy tester for MT4 causes issues when testing scalping EAs. In the first image we use the standard tester, with default data, and in the second we port over to tick data. The initial perception is that of a flawless strategy – but this is simply derived from poor data analysis. In this article we will cover the steps to ensure accurate testing on both MT4 and MT5, and touch on some elementary data science to help filter potential strategies.
