G+93 (QQEPCCI) Grid Straddle Strategy

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Fx93
Trader
Posts: 83
Joined: Mon Apr 09, 2012 6:32 pm

G+93 (QQEPCCI) Grid Straddle Strategy

Post by Fx93 »

So here is my idea to improve and modify the G+ straddle EA here at this thread:

http://www.stevehopwoodforex.com/phpBB3 ... ?f=5&t=485

The intent is to get one in early on a swing in the opposite direction rather than a breakout, as in this chart:
QQEPCCI Grid Straddle.png
Sell: The 14 QQE is above 65 and the PCCI goes below 0 on the close of the bar.
Buy: The 14 QQE is below 35 and the PCCI goes above 0 on the close of the bar.

I am using 3 pip range bars above, but any currency and any timeframe or range bar can be used with these indicators and rules, so that large grids can be used if one wants.

These trades both worked out, but if for example the first sell trade didn't and price went up say 20 pips further, we could place a buy there and start a grid. I would also suggest two options to let our profits run on the first trade before it turns into a grid. Say our normal TP is 17 pips, but we could say to take profit after 17 pips when either the QQE crosses its signal line or the PCCI goes above/below 0 again. This would take advantage of continued moves. Be sure however that taking an opposite trade setup overrides this.

All of the features of G+ as it is should remain, minus those dealing with the breakout box.

I would also like a feature where the grid and target price can be modified if we get into a grid. For example, say we have a normal 17 pip TP and a 20 pip "stop" where the grid starts. Well once the grid starts, we might not want a 17 pip TP and a 20 pip grid, we may want to try to get out of the trade faster and so settle for an 8 pip TP and a 10 pip grid. This would form a 20 pip no man's land and then a 10 pip grid above and below it, rather like how the breakout box looks.

Of course the lot multiplier should stay the same, but I would also add the option to have the first opposite trade stay with a 1x multiplier, as sometimes price will hit the "stop" (first opposite trade line) and then retrace back.

This system needs frequent trades to really gain, since one has to use a low lot size and higher margin (especially if one chooses to use a 2x multiplier), which is why I would use 3 pip range bars, or perhaps lower. It may be wise to not trade the day before the weekend gap like this, and the alternative is to use a larger timeframe and grid so one doesn't have to worry about the weekend gap.

Finally, if one wanted to try to make this a near continuous straddle grid trader (likely with small TP and grid size), one could have the option to turn the QQE entry rule off and just use the PCCI rule for entry.

P.S. There could be a built in risk control when trading multiple charts, I'm not sure if this is possible. Say we are trading 4 charts like this, when the EA knows a grid has formed on one chart, it could limit the max pairs traded by 1. So if one pair wasn't trading at the time it would stop trading on it and if it was it would stop trading after it closed. This is an idea to allow a lot of working trades, but when a grid forms on them to quickly limit the pairs traded, since once we get into a grid trade there is going to be more DD.
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