$10,000 to $90,000 – EURAUD Daily Candle Strategy Results

How does turning $10,000 to $90,000 sound to you..? Does that sound like a nice gain.? Well, below I share my results from testing out the daily alert candle strategy and using structure to enter trades. While this is only back testing results, it shows the power of sticking to the process in a strategy and creating a belief system like I mentioned in part 5 of Price Action Traders Mindset.

This is truly what we as all traders need to build as a foundation. It is one thing, like I have said before to think your strategy works, yet it is another to actually know it works. Back testing builds that belief system for you and simply keeps you on the right track.

In fact, without back testing I am sure 90% or more of all traders could not be profitable in this business. It is a core training tool.So, do I think all traders need to do back testing..? Heck yeah.

Above – The strategy tester I used in testing with this video is called Simple Forex Tester. To read my full review on this testing software.

Update – I now recommend traders use Forex Tester 2 for back testing, to find out more on Forex Tester 2 click here.

structure euraud daily chart

AboveStructure is literally everywhere in the Forex Market.

Overall in summary and going back to put everything in its right order, it all comes down to the process and sticking with it. If the strategy you are testing is not profitable shown through years of back testing then do not trade it, if it is and has shown it on many pairs over the years, then yes, it should give you confidence to move forward in your trading efforts. It is as simple as that, follow the process, except losses when they do happen and stick with what you know works overall.

Results Broken Down 

The testing  in the video above covers just under 7 years of trading, meaning taking $10,000 to $90,000 gave me an average gain of expectation of around 40% to 50% per year gain of full account. Taking into account the first year or so it was hard to see structure to the left which was actually a disadvantage to me overall. Meaning the results could of been much higher as seen in the video as well..

About Timon Weller

Timon Weller is the professional Writer and Trader behind the blog Forex Reviews. Timon Weller is also a professional Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. That is seriously very Impressive results! I must start testing it too in my forextester2 This changes a lot my view about the market rhytm. You could had even more money if you had risked more as your balance was growing.. Thanks a lot for this backtest results! you rock my world Timon!

  2. oh and one more thing.. could this engulfing candles use tighter sl to reduce drawdown and increase lot size? If you place your SL tighter inside the engulfing candle to 88.6% or 78.6% fib ret for daily engulfing candle size you could set your sl using 15min chart to see price closer or is it above the high or below low better?

    one more thing.. do you place your SL to BE and +10pips at 40 pips just in eur/usd or with all pairs the same?

    What would be your set Breakeven pips with pairs like gbpjpy, gbpnzd, euraud?
    I dont see much point trading low volatile pairs like eurgbp, eurchf with this strategy. only exception to this would be if they would give strongest signals (biggest engulfing candles) at the moment.

    • Hey Joni..
      Above or below high is the tried and tested method, you see it is either breaking the lows or highs and therefore hitting peoples stop losses which makes it more likely for it to shoot in your favor. While it does not guarantee every trade will be right, hitting other stops usually increases your odds overall and from back testing it works great.. Place order 5 to 9 pips above or below depending on signal and depending on pair.. Each pair is different.. Less volatile is usually less but most much the same.. 9 pips seems to be a magic number where people put there stop loss above daily candles or below.. 😉

      I use break even always after 40 to 50 pips.. Often i enter two half positions, take one off as well if risk to reward is around 1 to 1.. One run, set to Be, one take some profit off.. Depends on movement..

      Unless of course it is weekly then i use 100 pip BE.. Only time frame i do it like that though.. 15 minute chart i use entry candle body for BE..


  3. Wow thats very valuable information right there. Now i will start testing that 40pip BE with +10 additional pips. And i will start setting my sl at 88.6% inside engulfing candle cause i see it to by eyeballing (Daily) charts that very rarely it bounces straight after entry to that 100% top or bottom of entry candle. But on intraday charts it looks much more probable atleast i think.. on hourly candles i would go with that +9 additional pips 😛

    I think it would be better to go 1 full position and let it run BE if setup happens in good looking channel, wide range or some kind of harmonic pattern, but going 2 separate positions when charts looks less certain or is ranging tight. and the 2 positions would be something like 3/4s, 4/5, 9/10 for total risk in favor of 1:1 trade and the small position going with BE..

    Then again i maybe should just listen and follow your exact rules.. you are profitable trader afterall. 🙂

    This is my story
    I had some crazy experiences with testing my custom trendline break EA to 1hr/4hr pullbacks on my vps server. I placed 10 to 15pips sl and just 10 to 15pips to hit BE and for my surprise i got 1 runner after like 40-60 losses and Breakevens in row i had succesful runner that would had brought me like 6-10k for my micro account I traded so heavily and then i quit that and started looking for different methodology because it was so uncertain and it made me overtrade alot. Now i have been using same BE idea on my dailies that you do with 15min chart and it has been working very well but i think you can enter more with that 40pips BE especially on uncertain conditions if you dont intent to hold more than 1 to 1 RR

    I just found this http://www.forexreviews.info/lock-in-those-profits-damn-it/ and you mentioned on that article 50pip simple trailing? If thats working well for you then i might wanna try that too with those 1 to 1RR and just set target to 2 instead and trail with 50 pips.

    my last question

    Do you have any clue does it decrease significantly your position survivability if you set your BE +10 pips than if you would only do +1 pip?

    and sorry for long text. and thanks a million for your reply, i even saved it in my textfile called Timon Weller where i save some of your quotes and guidelines.

    • Hey Joni,
      Yeah no problems, with back testing you will see what suits you best overall.. Every trader is a little different overall, more so about holding profits as long as possible is the key with many strategies, that way when finally get a runner we can cover all our previous trades losses and make a decent gain on account. Bit like the 80 20 rule.. 80% of all trades will be average gain or loss, however 20% will be the ones that build the account. This applies to trading a lot. Sticking to the process in order to allow trades to run, but get out if the market changes course. Trend trading really..

      With your BE question – Yes that is fine, I commonly put it just above my entry price or below in sell position sometimes locking in 4 to 7 pips.. If you want to lock in more like 10 that is fine also however do not get into the habit of locking in too much in the beginning because allowing the trade to move is important..


      • yeah i think its important to give trade breathing room if its planned to hold longer than short term profit i came conclusion that il do what you suggested, open 1 half and set sl to 88.6 or even inbetween 78.6 and 88.6 and tp for candle size therefore RR would be just over 1 to 1 BE would set asp to that +10 at 40 pips. and i would give the other half more room for 1pip behind entry candle and be +10 after candle body target pips is reached, so it has better chances to survive. i would add a comment like “Carrot1” to that position and track down to my journal how many pips sl it was set and what what was the profit pips or BE i took from it.. I would be satisfied with anything over 2 to 1 rr but in general i would target large swings like 700 to 1000pips and i would be more willing to risk some of my bigger trades for even greater RR if i had several positions open and doing well.

        Fortunately i have this ea called Loctrail that will assist me to set BE for my trades though vps server i will set soon for my trading.

        but this will be my final post for this topic. I never end up having set of rules if i always try to fix my moneymanagement, entry, BE and exit plan. Just Let it run if trade goes well and everything will be fine… 🙂

  4. while i was walking i was thinking more this discussion of entries and breakevens i think your idea would be better if opened 2 half positions except i would enter with 1 position tighter sl (88.6) and went BE after 40pips and +10pips Another position would put 1 pip behind candle high or low and BE after candle body and +10pips..

    in well established trend or channel i would open 2 positions and let both positions run but close only half when i think the trend is exhausted and save the another. On ranging condition i would open 2 positions again with same method but i would target atleast 1 to 1 or range areas bottom/top and let running position die on break even or keep running..

  5. Hi Timon

    Do know anyone, maybe yourself, that once or is now trading while holding a full time job. I bought the engulfing trader pack last night, i dont think i could get away looking at the charts every 1hr while working. I could most probably get away with 4hr charts.

    Just wondering if you could give me few pointers or tricks that i havent thought of that would allow me to trade while holding a full time job.?

    Thanks Timon

  6. cool..

    So, should we use simple forex tester or forex tester 2?

  7. I think im gonna buy the forex tester 2, its only a few bucks extra.

    actually i took this week off to commit to either paper trading or backtesting and was looking for your opinion..
    So , story so far.. I started reading about trading almost a year ago now, I did all the theory on babypips.com etc and a few other resources and courses, I drank the kool aid and bought the indicators and signed up to some trader subscriptions etc yet I put no trades on. Then I came across the engulfing trader course and decided that was the route for me so I did that course. Im just trying to keep things as uncomplicated as possible and not follow the herd.

    The other day i spoke to a guy who also traded and he said not to even think of doing a trade until i do at least a couple months paper trading until i know im profitable. This sounds sensible but disheartening as time is getting on. However , if i was to go all out with e.g. Forex tester 2 this week and do a couple years worth of trading (across a few pairs and a few different time frames) and can somehow manage to nail the engulfing trader strategy, then is it really possible that I could start trading in the next week or two and stay above water ? Sometimes trading looks so complex to me, then sometimes it looks so simple if one sticks to the risk plan and strategy. Maybe I should quit while I’m ahead 😉

    • Hey Ew,
      Yeah Forex Tester 2 is much better than Simple Forex Tester and I do not recommend Simple Forex Tester no more, reason being is it is not working on some later versions of MT4.

      Yeah, all good points there and some good recommendations when learning the market. I also highly recommend paper trading and back testing as well, after all like you say the value of testing years of data is priceless. Turns a trader from a thinker into more of a knowing what works in the market. When I do back testing I often like to do 10 years at a time when testing anything, that way you will start to see the numbers and the moves of the market well. Also ten years really tests a methodology properly. Long term back testing also teaches another valuable lesson as well and that is discipline and breaking old habits.


  8. excellent advise Timon

  9. John Rungen says:

    Hello Timon.
    Thanks for the video, this result is very impressive and encouraging. I have to pay more attention to structure and process. To often I have jump on the first trade instead of waiting to see what the market is suggesting. I have watch the first 3 price action series. I have just found part 5 in the above video. If you have a CD of the whole series I would like to purchase a copy.
    Thank you.

    • Hey John,
      Thanks for the sharing the great feedback on The Price Action Traders Mindset Series. I will email you some details in order to be able to get access to this series on DVD.

  10. Hi Timon,

    Thanks for the video. When I eventually deposit I am going to try to double my capital in 3 months. I think this is possible. and I have been a lot more stringent with my trades and only entering trades I am absolutely convinced with as opposed to maybe ranging trends in the past. Whether it is £500 or £1000 I deposit I will alter the risk factor to suit the strategy.



  11. Hi Timon,

    I know who you are referring the one who only believe in fundamental analyses is Jaratt Davis. After listening to his videos, I immediately concluded that he is a cocky, and having a hidden agenda to make money by tactfully selling his training program! He gives a very little of his “average advices” just to attract people to sell whatever he has to make money for his living! Most of the time his predictions are wrong!

    Thanks once again for your sincere efforts. I really appreciate.

  12. Hi Timon,

    Enjoy your videos – you inspire me to become a better trader. Just a question – was the back-testing done using a computer algorithm and if so, is there a way to do this in Metatrader 4. I agree that back-testing builds one’s belief system but I find it takes up so much time so I do it as I have time.

    Keep these vids coming.


    • Hey Ripple,
      Was done manually through Simple Forex Tester. If looking at a good tester, then I would recommend checking out Forex Tester 2. I use it in all my testing and it is the best online that I have found as well for long term back testing.

      I would not recommend any forms of Robot or EA algorithm based trading.

      Back-testing does take time, however it is a crucial part of the learning process in trading. Without doing it a lot of traders will jump from method to method with no plan.


  13. Timon man, 4 years knowing you, you are still the best I can say exists in telling the truth in simplicity and not holding back. Tell you what, I have come across some too telling it in your format, and one can easily see they are fake…. this is not the original Timon…..Thanks a billion, been a D timeframe specialist……and sticking to it all these years……its the best way to guarantee peace of mind after the engulfing candle is confirmed…….thanks again…..

    Peter A

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