AlphaCode - J.J Murphy (EURUSD)

Description

Bot: J.J. Murphy 
Symbol: EURUSD 
TimeFrame: h1

(This robot only works on EURUSD h1 timeframe).

"Technical Analysis is very much like assembling a huge jigsaw puzzle, where each technical tool represents a piece," John J. Murphy.

The J.J. Murphy cBot is an algorithm that seeks market opportunities based on the technical analysis theory championed by John J. Murphy himself in his seminal work, "Technical Analysis of the Financial Markets."

This bot incorporates strategies for both trend continuation and trend reversal, including:

1. Head and Shoulders Strategy: A strategy based on the identification of this pattern and the necessary conditions for its effectiveness within the context.
2. Double Top Bottom: A trend reversal strategy based on identifying 2 patterns that signal a price reversal at certain levels.
3. Triple Top Bottom: A trend reversal strategy based on identifying 3 consecutive patterns that, depending on the market context, signal a price reversal.
4. Flag: A strategy based on identifying the Flag pattern with a clear trend and the necessary conditions to validate the pattern.
5. Pennant: A strategy based on identifying the Flag pattern with a clear trend and the necessary conditions to validate the pattern.

Risk Management:

The bot has maintained consistent profitability over 8 consecutive years from 2016 to 2023. Starting with an initial amount of 1000 USD and investing 1.5% of the portfolio per trade, the result is 120,121 USD, equating to a return of 12,012% on the initial amount over the period.