EA based on support/resistance

Post by **putusernamehere** » Fri May 30, 2014 8:08 pm

Hi AGT :hi:
i think is not so bad , it`s a slow trader in win 20,19$ whitout intervention.
next week I test with a few better selection.

nice weekend

Gunter

jhs · Post by **jhs** » Fri May 30, 2014 8:17 pm

Tommaso,
I would like to study this EA on a shorter time frame in order to increase the number of trades and for better undertand its behavior. Are you available to discuss some changes and if you agree to modify the EA, please?
The objective is to "try" to improve the performance.
Thanks

Cheers

Sorry, I forgot to specify "try"...

Post by **milanese** » Fri May 30, 2014 8:19 pm

jhs » Fri May 30, 2014 8:17 pm wrote:Tommaso,
I would like to study this EA on a shorter time frame in order to increase the number of trades and for better undertand its behavior. Are you available to discuss some changes and if you agree to modify the EA, please?
The objective is to improve the performance.
Thanks

Cheers

Sure, you are welcome !

Cheers

Tommaso

jhs · Post by **jhs** » Fri May 30, 2014 8:31 pm

Thanks a lot,
I'll prepare some charts screenshot so we can analize this idea more in depth.
In the meantime
Have a great weekend all

Cheers

jhs · Post by **jhs** » Sun Jun 01, 2014 9:19 pm

Hi,
I prefer to consider for now an higher TF, H4 is the best IMHO because S/R are essentially identical to daily levels (more reliable).

About the Concept

Buy from support
1- Verified support (test >=2)
2- Turncoat support
Rules:
when price hits support the EA will place 3-5 (or more) buy stop orders "x" pips above current price.
SL placed "x" pips below the lower border of support zone;

Sell from resistance
1- verified resistance (test >=2);
2-turncoat resistance
Rules:
when the price hits the lower resistance border, the EA will place 3-5 (or more) sell stop orders "x" pips below current price.
SL placed "x" pips above the upper border of resistance zone.

Trade management
TPs can be identified using a fibo ratio of the last swing ( ZigZag indicator in green).
Using the min size allowed (0.01 lots), we can have for example 0,05 position opened for each pairs.
Suggested TPs levels are 38,2 -50- 61,8 -100 -161,8% (maybe others) or we can decide to use only some of them and then leave the remaining positions as a "runner" (handled by a TS).
After the 1st TP is reached half positions are moved to BE, the remaining when the 2nd TP is hit (50% or highr retracement).
For TS we can use the recent swing high/low as reference and place the SL some pips upper or below these levels.

Thanks.

Cheers

Post by **milanese** » Mon Jun 02, 2014 8:53 am

jhs » Sun Jun 01, 2014 9:19 pm wrote:Hi,
I prefer to consider for now an higher TF, H4 is the best IMHO because S/R are essentially identical to daily levels (more reliable).

About the Concept

Buy from support
1- Verified support (test >=2)
2- Turncoat support
Rules:
when price hits support the EA will place 3-5 (or more) buy stop orders "x" pips above current price.
SL placed "x" pips below the lower border of support zone;

Sell from resistance
1- verified resistance (test >=2);
2-turncoat resistance
Rules:
when the price hits the lower resistance border, the EA will place 3-5 (or more) sell stop orders "x" pips below current price.
SL placed "x" pips above the upper border of resistance zone.

Trade management
TPs can be identified using a fibo ratio of the last swing ( ZigZag indicator in green).
Using the min size allowed (0.01 lots), we can have for example 0,05 position opened for each pairs.
Suggested TPs levels are 38,2 -50- 61,8 -100 -161,8% (maybe others) or we can decide to use only some of them and then leave the remaining positions as a "runner" (handled by a TS).
After the 1st TP is reached half positions are moved to BE, the remaining when the 2nd TP is hit (50% or highr retracement).
For TS we can use the recent swing high/low as reference and place the SL some pips upper or below these levels.

Thanks.

Cheers

Thank you, have you tested manually this system ?

Cheers

Tommaso

jhs · Post by **jhs** » Mon Jun 02, 2014 9:18 am

You're welcome. I tested something very similar on D1 last month of May just for having an idea of the performance. Almost same approach but with more sophisticated rules for entry and exit. All the trades have been executed at the and of NY session. Nonetheless the result has been above 50% in green. Please tell me if you need additional info.
Thanks

Cheers

Post by **milanese** » Mon Jun 02, 2014 9:31 am

jhs » Mon Jun 02, 2014 9:18 am wrote:You're welcome. I tested something very similar on D1 last month of May just for having an idea of the performance. Almost same approach but with more sophisticated rules for entry and exit. All the trades have been executed at the and of NY session. Nonetheless the result has been above 50% in green. Please tell me if you need additional info.
Thanks

Cheers

Interesting would be imo to set pendings in both directions, so we could take the trade, if the zone will be broken or if the zone will hold with deleting the other direction if one order would be filled..

Cheers

Tommaso

jhs · Post by **jhs** » Mon Jun 02, 2014 9:58 am

I agree, great idea.
On higher TFs where the stop are wider, for protecting capital I was thinking of using the MPTM hedging function. I have not tried yet (I just took a quick look) but it might be a good test to do.
Thanks

Cheers

Post by **milanese** » Mon Jun 02, 2014 4:16 pm

Hi all,

thanks to the idea of jhs I coded a new version of the EA, now setting pending orders, if you use the TrendStrategy the EA will set the pending orders below the supportzone low and above the resistence zone high.
The CounterTrendStrategy will do the contrary..
OOTB the EA trades H4 TF and uses 1 time verified zones.

TheSRZoneEA_F_6xx.mq4

Cheers

Tommaso