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Jeff Pierce
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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
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  • SpreadCharts Automated Forex Trading Strategies 0 comments
    Dec 11, 2013 6:01 AM forex portfolio is based on two algorithmic models that are highly complementary to each other. The objective is to generate stable earnings while maintaining a low level of risk for investors.

    The basic concept is based on the principle of maximum effectiveness and efficiency of capital throughout the day. Therefore the first system is traded during major European and U.S. sessions and the second is a system that utilizes a lower volatility during the Asian session.

    Emphasis was placed on maximum stability and balance of individual models. Portfolio is comprised of breakout model that utilize the increased volatility and rapid movements of the market to generate profits and also mean-reverting model which in turn has very good profitability in non-trending market. With a combination of these strategies, the whole system has highly stable performance and very low drawdown.


    All strategies have a built-in protection against risks and unexpected market situations. Portfolio is calculated as a balanced whole and recommended capital is 10000 USD. The risk determined by the maximum expected shortfall and our recommendation is 20%.

    The maximum allowable drawdown

    Protecting investor's capital is our top priority. Each trading model has a maximum allowable drawdown. After reaching this limit, the model is stopped therefore preventing any further losses.


    • Minimum deposit: 2000 USD
    • Recommended deposit: 10000 USD

    Strategy 1 - LONDON BREAKOUT

    The strategy is exploiting increased market volatility after the opening of the world's largest stock exchanges. The algorithm thus works on a long-term, time-tested market logic and set initial price range that the market is likely to break through - either upside or downside - and the investor realizes profit from the trade. It is therefore a so-called breakout strategy. It's big advantage is stable performance and favorable risk-to-reward ratio.

    The strategy is deployed on GBPUSD and USDJPY market. It was tested also on AUDUSD and EURUSD but it's performance was not satisfactory. Risk per trade is 2% of the account.

    Equity curve since May 2013 when the strategy was launched:

    (click to enlarge)

    click to enlarge

    Strategy 2- ALGOS NIGHT

    AlgosNight strategy is based on a statistical probability model for development of prices in the night session when the market is very stable and predictable. Great advantage of this approach is an interesting profit potential at a reasonable maximum draw-down. The strategy is profitable on many currency pairs but currently is deployed only on EURCAD and EURGBP for maximum efficiency. The strategy is using adding to positions, but only one time and not very often. Risk per trade is 1% of the account, although trades reach this stoploss very rarely. Market usually isn't volatile enough to make 1% move either way.

    Equity curve since August 2013 when the strategy was launched:

    (click to enlarge)

    click to enlarge

    If interested in either of these two free forex trading strategies contact Jeff Pierce at

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