Stop hunting EA

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Gamma_gallus
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Stop hunting EA

Post by Gamma_gallus »

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
Last edited by Gamma_gallus on Fri Feb 03, 2012 4:32 pm, edited 1 time in total.
MichaelM
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Re: Stop hunting EA

Post by MichaelM »

Sounds like a sound strategy developed around round numbers

Thanks for sharing Olivier :)
MichaelM
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Posts: 117
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Re: Stop hunting EA

Post by MichaelM »

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.
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Gamma_gallus
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Joined: Wed Nov 16, 2011 2:03 pm
Location: France

Re: Stop hunting EA

Post by Gamma_gallus »

Interesting point Michael, thanks for that, this could be indeed an user option.

I make an update on the 1st post

Olivier
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Gamma_gallus
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Joined: Wed Nov 16, 2011 2:03 pm
Location: France

Re: Stop hunting EA

Post by Gamma_gallus »

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 :oops: )

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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