Does this have merit??

Place your new trading idea here to see if someone can automate it.
Post Reply
User avatar
Aus67
Trader
Posts: 94
Joined: Mon Jan 21, 2013 8:50 pm
Location: Queensland Australia

Does this have merit??

Post by Aus67 »

Capture.JPG
Hi All

First time posting here after reading a lot of great threads!! Impressive forum and some great contributions!! Steve is doing some impressive work and so too any other coders that the have ability to do what Steve is doing!

Okay, so reading through a lot of the forums I would like to put an idea forward and see what the experienced people think.

Has anyone thought about using a similar concept to the 'sure-fire' hedging EA ...((please read on before you discard this thread!!)) I agree that the death trade of that system is very real...but
I have been playing with the concept but only employing it at very specific market conditions...put simply.
I look for a channel of consolidation to form before the market opens and then put two horizontal lines at the top and bottom of this channel...please see the attached image to see what I mean. If market is zooming I don't trade...I wait for the consolidation to break out

If price breaks above the channel I go long with a .01 with TP 30, SL60 ....if price then turns around and goes the other way (as Empty4 is designed to do! :shock: ) and continues through the bottom line a short trade is entered of lot size 0.03 with the same TP30 and SL60...this employs the same strategy as the sure fire now with enlarging lot sizes...then a 0.06 if it goes up again...The losses of the other trades are carried but they are soaked up by the larger lot sizes...I have always seemed to escape with no more than the 0.06 lot size.

I am in Australia so it is difficult to sit up into the wee hours placing the trades manally, so I was hoping that a coder (or 'the coder') could automate this concept using the horizontal lines +spread or a comfort zone to enter the trades.

Is this as clear as mud? I use the 5 min chart and have found that in our market (aus and japan) the yen crosses work well and often the GBPUSD.

In the attachment you will see where I entered short (blue squiggle) after price broke below....the market is setting up this morning in Australia in a another channel...lets see what happens

Anyway thats about it!

Oh forgot to mention that if the consolidation channel is only 20pips for example, that is when you would go short...and you can either have the SL for the first trade around here...or give it some room with a larger SL

Happy Pipping!!!!
You do not have the required permissions to view the files attached to this post.
...if you are given a gift and you decide not to accept it, to whom then does the gift belong to? Think about it!
User avatar
SteveHopwood
Owner
Posts: 9754
Joined: Tue Nov 15, 2011 8:43 am
Location: Misterton - an insignificant village in England. Very pleasant to live in.

Re: Does this have merit??

Post by SteveHopwood »

Ok, a couple of thingies here:
  • you need to present a mathematical way to calculate your consolidation zone. I do not mean Gary-style Doctorate maths, but an algorithm: look back over x candles on y timeframe, so the highest high and lowest low of those candles is <= x pips. Coders are not mind readers and I have learned from grim and bitter experience not to try to do so. If you cannot do this because a cz is too vague, then this cannot be automated.
  • you need to post pictures of charts that hold on them only the information you are describing. Look at yours. All sorts of dots and arrows and what looks like a moving average channel. These suggest to a coder that there is more to all than this than you are describing so that there are possibilities that:
    • there is more to all this than you are letting on and that trying to automate it is a waste of time.
    • there will be 'mission creep' as you gradually release more and more bits of info as you remember them.
    • yours is a chaotic mind whose ramblings are best ignored.
Up to you what you do with this info. Whether I take any further interest in this thread depends on what you do with it.

:D
Read the effing manual, ok?

Afterprime is the official SHF broker. Read about them at https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?p=175790#p175790.

I still suffer from OCCD. Good thing, really.

Anyone here feeling generous? My paypal account is always in the market for a tiny donation. [email protected] is the account.

To see The Weekly Roundup of stuff you guys might have missed Click here

My special thanks to Thomas (tomele) for all the incredible work he does here.
User avatar
Aus67
Trader
Posts: 94
Joined: Mon Jan 21, 2013 8:50 pm
Location: Queensland Australia

Re: Does this have merit??

Post by Aus67 »

Hi Steve

Thanks for the reply and advice! trying to think like a coder, may prove a little difficult for me.

Anyone who can look at this: if(xi == || ++,, = holycrap!!)

and knows that it means something, has a part of the brain that I missed out on!


The Attached Chart in post one.

On my first post chart there are some residual indicators that I should have removed, they were from days gone by and make the chart look sexy, but don't really influence the trading, they are more of PITA actually. My apologies for that!

But I will explain them at the bottom and include the mq4 files, maybe someone can see a benefit to using them!
Frame4b.JPG
THE STRATEGY

Any 5m chart but Yen crosses work well here in Australia...because its the morning!!

1. THE MANUAL PART

* With your Mark 1 eyeball, find some consolidation of price (or a swing high and low) between the markets!! Between US and Japan and Japan and London (the green circles).

I was told once that this is when the sharks are out manipulating prices to hit stops, don't know how true it is, but anyway there is usually a swing high and low formed on some charts that acts as a reference point for our trading.

* Manually place a horizontal line (or trendline) at the top and bottom of price action (yellow lines on the attached chart)

2. The Automated part (hopefully)

When the EA is turned on, these two lines become two pending orders of the same lot size (ie. 0.01) One pending order is to go long at the top line and one to go short at the bottom line. (+spreads)

Now we wait and see which way price will move.

Trade1. (at 2. on chart) Trade1 entered short because price broke down, lot size 0.01 (SL 60 TP 30)

What might happen.
Take Profit hit - Close trade , Go home, buy the wife some flowers!
- The pending long trade is automatically cancelled (somehow) OCO if TP hit?
or
Price moves in against us and
- if the channel (between the two lines) is smaller than SL of trade 1.
then we enter a long position at (3. on the chart) with lot size 0.03 (SL60 tp 30) and carry the loosing short trade.

- if the channel is bigger than trade1 SL, then accept the loss and move on!
- The new long trade (3.) will be bigger lot size of 0.03 as above. (or maybe have the option to start the pattern again, just a thought for different trading styles!)

Now wait.

What might Happen
Take Profit hit - Close trade, take the misses to dinner! (as what happened on the chart)

or

Price now falls again (the big blue arrow)

- Another trade is entered short if price breaks through bottom line of channel again (at 4.)
lot size 0.09 SL60 and TP 30 (now crawl under the desk and hang on)

3. THE Logic:
A Currency with a big trading range is going to move somewhere, just ride with it.
Choose a spot to jump on initially (I use the queit time between the markets)

However, Play it smart, if the 3rd trade is a looser, get off....Don't let ball size come before brain size! In saying that, maybe the EA could include several new trade sizes for those with less risk adversion.

----------
TrendBreakEA-14.mq4
I have included an EA (TrendlineBreak.mq4) that a great coder modified for me a couple of years back.(Thanks to Christina Li!!) It enters trades when price breaks or bounces of a trendline placed on the chart by the user.
it has safety features built in...a pip limit to avoid spikes, spread distance, and waits for price to move below/above the break bar before entering

You might be able to modify this one to hedge the position with bigger lot sizes, because it works great for anyone who trades trendlines!! (it doesn't work on horizontal lines) ( you have to name the upper and lower trendlines in the 'description' part of the dialogue box, not in the name part)
----------

I hope this helps, apologies in advance if not

Happy pippping
Daryl

THE INDICATORS ON THE FIRST IMAGE

The Moving average channel.
BlackDog Color MA.mq4
On a 5min chart the two Moving average channel are just 150 period Exponential MA's, one on the high and the other on the low price.

They are not needed to trade but I guess they might give an extra confirmation if they are moving down and the breakout occurs in their direction. They are more of a visual thing.


The Price Action Dots and Arrows
PriceAction.mq4
The black dot indicates 'reversal bars' where open and close price are at a certain % away from high or low of bar.
The Red and Green little arrows indicate 'outside bars'

once again I don't trade off these as they are leftover from another system. I should have removed them, but they are attached here if anyone wants them. Sometimes they work, sometimes they don't.


The coloured squares are just market open and close hours for japan, london and US. Once again a visual thing only.
MarketHours.ex4
You do not have the required permissions to view the files attached to this post.
Last edited by Aus67 on Fri Jan 25, 2013 1:54 am, edited 1 time in total.
User avatar
Aus67
Trader
Posts: 94
Joined: Mon Jan 21, 2013 8:50 pm
Location: Queensland Australia

Re: Does this have merit??

Post by Aus67 »

DISREGARD ALL SORTED, THANKS STEVE!!

Rito everyone, not sure what is happening here.

for some reason, I cannot attach anything to this post.
I browse to the file, then select 'add the file' ...the path disappears and nothing happens

Will post attachments asap, sorry for the inconvenience traders


Hope a moderator will be able to straighten this out!

Cheers
Daryl
Last edited by Aus67 on Fri Jan 25, 2013 1:55 am, edited 1 time in total.
...if you are given a gift and you decide not to accept it, to whom then does the gift belong to? Think about it!
User avatar
SteveHopwood
Owner
Posts: 9754
Joined: Tue Nov 15, 2011 8:43 am
Location: Misterton - an insignificant village in England. Very pleasant to live in.

Re: Does this have merit??

Post by SteveHopwood »

Aus67 wrote:Rito everyone, not sure what is happening here.

for some reason, I cannot attach anything to this post.
I browse to the file, then select 'add the file' ...the path disappears and nothing happens

Will post attachments asap, sorry for the inconvenience traders


Hope a moderator will be able to straighten this out!

Cheers
Daryl
Adding Gday to test this out.

:D
You do not have the required permissions to view the files attached to this post.
Read the effing manual, ok?

Afterprime is the official SHF broker. Read about them at https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?p=175790#p175790.

I still suffer from OCCD. Good thing, really.

Anyone here feeling generous? My paypal account is always in the market for a tiny donation. [email protected] is the account.

To see The Weekly Roundup of stuff you guys might have missed Click here

My special thanks to Thomas (tomele) for all the incredible work he does here.
User avatar
SteveHopwood
Owner
Posts: 9754
Joined: Tue Nov 15, 2011 8:43 am
Location: Misterton - an insignificant village in England. Very pleasant to live in.

Re: Does this have merit??

Post by SteveHopwood »

I see adding the attachment worked ok, so there is a problem at your end, probably related to your browser.

I use Firefox. On one of my machines, F will not display picture attachments. On the one I am using now, they display fine. Instead, I find random words underlined and hovering the mouse over them takes me to ads for ipad stuff that I would not even accept for free.

Wonderful thingies, computers.

:D
Read the effing manual, ok?

Afterprime is the official SHF broker. Read about them at https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?p=175790#p175790.

I still suffer from OCCD. Good thing, really.

Anyone here feeling generous? My paypal account is always in the market for a tiny donation. [email protected] is the account.

To see The Weekly Roundup of stuff you guys might have missed Click here

My special thanks to Thomas (tomele) for all the incredible work he does here.
User avatar
SteveHopwood
Owner
Posts: 9754
Joined: Tue Nov 15, 2011 8:43 am
Location: Misterton - an insignificant village in England. Very pleasant to live in.

Re: Does this have merit??

Post by SteveHopwood »

Just to confirm, as a PCA I can log in using your forum 'permissions'. I just did and was able to post an attachment, so the prob is definitely at your end.

:D
Read the effing manual, ok?

Afterprime is the official SHF broker. Read about them at https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?p=175790#p175790.

I still suffer from OCCD. Good thing, really.

Anyone here feeling generous? My paypal account is always in the market for a tiny donation. [email protected] is the account.

To see The Weekly Roundup of stuff you guys might have missed Click here

My special thanks to Thomas (tomele) for all the incredible work he does here.
User avatar
Aus67
Trader
Posts: 94
Joined: Mon Jan 21, 2013 8:50 pm
Location: Queensland Australia

Re: Does this have merit??

Post by Aus67 »

thanks I will reboot the computer and see what happens
...if you are given a gift and you decide not to accept it, to whom then does the gift belong to? Think about it!
Post Reply

Return to “Ideas for Possible Automation”