I am testing a system in demo for a combination of fundamental analysis and technical analysis based on mean reversion and a few other trend direction indicators including retail trader sentiment. The first two weeks have worked well. Paper trading only the first week and placed trades on a demo account this week just gone.
Early days but the results are going well so far.
4 hour charts - only trade when fundamentals are opposite to the retail trader sentiment
Determine watch list on the weekend after fundamental updates are complete
Trade 1 - enter at start of week with a small position in direction of fundament trend. 0.2% risk per pair. Catches the big move weeks that do not retrace - small trade risk.
Trade 2 - enter with limit orders on retracements against the overarching fundamental trend direction. 0.8% risk per pair. Catches the retracement for better entries when there is a retracement back to a bank/institutional order level - larger trade risk.
Results are as follows:
Week 1 - paper trading +7.9%
Week 2 - demo trading on live markets £1005 profit on £35000 demo account +2.8%