Hello,
I've found below strategy very interesting , so I made a visual check on a EURUSD chart and it seems to be working well. (Why "stop hunting" is very well explained in the article)
http://www.investopedia.com/walkthrough ... stops.aspx
In short it's :
TF: H1
Long: price above SMA 200
Enter at a price .85 (15 pips under a round number)
* edit (option from Michael) : optional input = trigger the trade if Daily candle open is below .85 mark
TP1 : round number (00) also move to break even the SL
TP2 : price at .15 (15 pips above the round number)
SL : 15 pips (so at level .70)
Short: price under SMA 200
Enter at a price .15 (15 pips above a round number)
* edit (option from Michael) : optional input = trigger the trade if Daily candle open is above .15 mark
TP1 : round number (00) also move the SL to break even
TP2 : price at .85 (15 pips under the round number)
SL : 15 pips (so at level .30)
Do not trigger a second trade if the first one is still open.
R:R : 1:1 for TP1 , 1:2 for TP2
Maybe with a jump stop or trailing stop functionality we could set a very high TP2, because based on what i saw , there are rooms sometimes for making much more pips.
thx
Olivier
Stop hunting EA
- Gamma_gallus
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Stop hunting EA
Last edited by Gamma_gallus on Fri Feb 03, 2012 4:32 pm, edited 1 time in total.
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Re: Stop hunting EA
Sounds like a sound strategy developed around round numbers
Thanks for sharing Olivier
Thanks for sharing Olivier
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Re: Stop hunting EA
I was analysing this method on AUDUSD and you'll see on the H1 chart that it had been chopping around it's RNs.
A good additional rule for direction would be:
LONG: Only enter if candle* open below 85 mark
SHORT: Only enter if candle* open above the 15 mark.
* An extra filter for this rule would be to use the Daily candle open, instead of H1 candle open.
A good additional rule for direction would be:
LONG: Only enter if candle* open below 85 mark
SHORT: Only enter if candle* open above the 15 mark.
* An extra filter for this rule would be to use the Daily candle open, instead of H1 candle open.
- Gamma_gallus
- Trader
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- Joined: Wed Nov 16, 2011 2:03 pm
- Location: France
Re: Stop hunting EA
Interesting point Michael, thanks for that, this could be indeed an user option.
I make an update on the 1st post
Olivier
I make an update on the 1st post
Olivier
- Gamma_gallus
- Trader
- Posts: 118
- Joined: Wed Nov 16, 2011 2:03 pm
- Location: France
Re: Stop hunting EA
Stupid me !
I've posted the article without making first my investigations ...
I've found this EA on codebase.mql4 ...
All my apologizes Gentlemen, I may have left my brain aside when I posted my initial post .. (it happens that I behave sometimes like a primitive primate )
Anyhow, as per what I read the EA seems to have some bugs : it triggers sometimes many similar orders and doesn't seem to follow the SMA rule.
I should test this EA when the market opens to see what's what.
PS: I know that I didn't practice this method over a period of time, so no results to share with you, but just consider the above as sharing an idea that seems interesting and makes sense to me.
Olivier
I've posted the article without making first my investigations ...
I've found this EA on codebase.mql4 ...
All my apologizes Gentlemen, I may have left my brain aside when I posted my initial post .. (it happens that I behave sometimes like a primitive primate )
Anyhow, as per what I read the EA seems to have some bugs : it triggers sometimes many similar orders and doesn't seem to follow the SMA rule.
I should test this EA when the market opens to see what's what.
PS: I know that I didn't practice this method over a period of time, so no results to share with you, but just consider the above as sharing an idea that seems interesting and makes sense to me.
Olivier
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