LCPB was programmed in MQL4 as a so-called “Expert Advisor” (EA) for the well-established and widely used trading platform Metatrader 4 and is a product of several years of research, development and optimization.
The results of extensive back tests indicate a consistently profitable performance for the period of at least the last 10 years.
The LCPB EA can trade multiple currency pairs alongside other EAs provided by MT4-Forex-EA.com on one and the same Metatrader 4 account, being a part of a portfolio of diversified trading strategies that distribute risk across a variety of different assets and strategies and help to compensate losses and minimize drawdowns.
The LCPB (London Close Pull Back) strategy is based on the fact that the market has a tendency to perform a pull back due to profit taking around the time the London Stock Exhange closes, if at that time the price is near the session’s high or the session’s low.
The LCPB EA uses a variety of methods to filter the signals.
According to back tests, the LCPB strategy works well on almost all currency pairs except of CAD pairs.
On the basis of the most recent back test results, LCPB is currently set to trade the following 20 currency pairs:
AUDCHF, AUDJPY, AUDUSD, CHFJPY, EURAUD, EURCHF, EURGBP, EURJPY, EURNZD, EURUSD, GBPAUD, GBPCHF, GBPJPY, GBPNZD, GBPUSD, NZDCHF, NZDJPY, NZDUSD, USDCHF, USDJPY
The LCPB strategy performs best if at the time of London Close price is near the top or the bottom of the session range which ideally happens to be a strong resistance / support level.
Poor performance is to be expected if strong fundamentals are pushing price further and beyond the session high or session low after London Close, without giving the market time for a break and a decent pull back.
Here is an example of a LCPB back test result:
Number of currency pairs tested: 20
Test period: 2007.01.01 – 2016.12.31 (10 years)
Risk model: 10:1 leverage / –2% daily loss limit
Initial deposit: $100,000
Total net profit: $269,430
Profit factor: 1.203
Sharpe ratio: 0.0794
Win rate: 65.15%
Max. drawdown: 15.5%