Building an equity millipede with Low risk entry

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bugkeab
Posts: 9
Joined: Mon Sep 03, 2012 9:44 am

Building an equity millipede with Low risk entry

Post by bugkeab »

Hi everyone,

I need some help from coder to create an EA that help us to build positions for long term trading.

I welcome questions and advice to improve the EA developments.

I think some of you may visit Graeme's thread at FF http://www.forexfactory.com/showthread.php?t=245149 , It is very good thread and it inspired me to trade long term or positions trading.

the main ideas are


1) Participation : You need to try to establish your positions regularly .
2) Low Risk entry : Finding method to entry with low risk set up.
3) Growth : let your established positions growth at about 2 weeks or more, it will become your legs
4) Diversify : when your legs growth more than 2 weeks or >500 pips you may close some small legs to smooth out your equity curve and offset the drawdown when you try to establish your positions.


Some of you may also read "Phantom of the Pits by Art Simpson "
http://www.webtrading.com/phantom/chapter1.htm

There are 2 Rules of trading that we need to integrated to our Trading system.

RULE NUMBER ONE

IN A LOSING GAME SUCH AS TRADING, WE SHALL START AGAINST THE MAJORITY AND ASSUME - WE ARE WRONG UNTIL PROVEN CORRECT! (We do not assume we are correct until proven wrong.) POSITIONS ESTABLISHED MUST BE REDUCED AND REMOVED UNTIL OR UNLESS THE MARKET PROVES THE POSITION CORRECT! (We allow the market to verify correct positions.)

RULE NUMBER TWO

PRESS YOUR WINNERS CORRECTLY WITHOUT EXCEPTION.


Now we will set set the conditions to create EA that helping us to buildings our long term positions.

1) Participation :
1.1) The most liquidity forex trade is during 1 hour before London session open to 1 hour after London close. We will participate market during this time.
1.2) We will participate both Buy and Sell

2) Low Risk entry : What do you think about the meaning of "low risk entry" ?
IMHO 2.1 ) risk 10-15 pips max per trade. (20-30 pips on JPY pairs)
2.2 ) have a chance to survive and growth.
2.3 ) you can move stop to BE or hit your TP with in next few bars
at the moment I think the Inside Bar entry with high volume filter on M5 or M15 chart will do for us.
(If you have other low risk entry per above conditions , please advise)

3) Growth : There are two components
3.1 ) time , let the survive position growth
3.2 ) stacking , stacking the positions after the market proven our last entry is correct.
( stacking until your last entry wrong and stop stacking )
4) Diversify : This will done manually after positions have enough growth.

Entry Setup: M5 EURUSD
Indicator use
DIBSv1.1
SonicR VSA Candlesticks

There are 2 bars on M5 to setup entry signal
first bar is high volume bar (colors bar by VSA indicator
second bar (very next bar) is inside bar (in sample yellow color highlight bars)
This set up will give either buy or sell depend on close price break out of IB.
we will entry with the close price of the very next 3 bars ( cancel setup if no break within next 3 bars)

BUY signal when close price one tick above the high of IB , buy market 0.2 lot ,stop one tick below low of IB but not more than 10-15 pip (user setting), TP 0.1 lot 10 pips+spread , 0.1 lot no TP
( the remaining 0.1 lot = free lags, proven correct position , then we will try entry more positions )

if TP reach then we will start stacking , open new buy 0.2 lot stop 10 pip ,TP 0.1 lot 10 pips+spread ,0.1 lot no TP , repeated stacking until last position hit stop.

option : if TP of setup IB do not reach with in next 8-12 bars , exit trade

move stop to break even for any positions that growth >= 20 pips

SELL signal when close price one tick below the low of IB , sell market 0.2 lot ,stop one tick above high of IB but not more than 10-15 pip (user setting), TP 0.1 lot 10 pips + spread , 0.1 lot no TP


if TP reach then we will start stacking , open new sell 0.2 lot stop 10 pip ,TP 0.1 lot 10 pips+spread ,0.1 lot no TP , repeated stacking until last position hit stop.

option : if TP of setup IB do not reach with in next 8-12 bars , exit trade

Many of Positions will die at BE , but hope fully the remain positions will growth for long term legs.
We try to risk on M5 chart for reward on W1 chart. :mrgreen:
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SteveHopwood
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Joined: Tue Nov 15, 2011 8:43 am
Location: Misterton - an insignificant village in England. Very pleasant to live in.

Re: Building an equity millipede with Low risk entry

Post by SteveHopwood »

I posted a couple of ea's trading the strategy. Can't remember where and don't care, so don't ask. They both failed.

You will find you are barking at the wrong moon unless you can: adapt Graeme's work successfully to your own ends; codify this into a strategy that is then programmable into an EA. Quite a lot of us have tried both and failed.

Either way, you have to offer up a strategy that you have been trading live for some considerable time before you will be taken seriously. Any dimwit can ask, "Please can I have an EA to test my ill thought out strategy?"

There are some seriously clever programmers coding stuff here. Please accord them a modicum of respect.

: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.

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My special thanks to Thomas (tomele) for all the incredible work he does here.
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