Automatic Loss Recovery System (ALR) - read this first

Post your EA's using ALR here
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mobthehop
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Joined: Wed Nov 16, 2011 12:16 am

Automatic Loss Recovery System (ALR) - read this first

Post by mobthehop »

For the ease of finding the new Excel - http://www.stevehopwoodforex.com/phpBB3 ... 270#p97786

Thanks for your work on this Insider!
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macman
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Joined: Tue Nov 15, 2011 7:47 pm
Location: Somewhere on a European waterway, on my classic (old) Dutch barge

Automatic Loss Recovery System (ALR) - read this first

Post by macman »

TheInsider » Sun Nov 02, 2014 11:30 pm wrote:Hi guys!

I have now updated my version of the ALR-calculator ..........
......... making it free for anyone to download and use is not an option .....!
Hmmm .... not sure about this :?
Before doing this I strongly suggest you check with Steve if you intend using code and/or ideas taken from this forum and asking money for them. Especially as it seems Wealthmaster originally paid a programmer for the code he released here.
This account takes ALL software generated trade calls from my FXW training course and is used to develop money management routines.
http://www.mt4i.com/mt4ichart.aspx?c=ch ... udent-demo
blazecrown
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Posts: 31
Joined: Thu Jul 31, 2014 10:20 am

Automatic Loss Recovery System (ALR) - read this first

Post by blazecrown »

Hi TheInsider,

i've been thinking about you and your work (read: looking for you)... i know you were working on that greatly improved ALR-manager... i'm just glad that you're back... i'm looking forward to have a try on your amazing ALR-manager... all the best... :)
TheInsider
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Posts: 20
Joined: Wed Aug 06, 2014 10:14 pm

Automatic Loss Recovery System (ALR) - read this first

Post by TheInsider »

macman » Mon Nov 03, 2014 8:39 am wrote:
TheInsider » Sun Nov 02, 2014 11:30 pm wrote:Hi guys!

I have now updated my version of the ALR-calculator ..........
......... making it free for anyone to download and use is not an option .....!
Hmmm .... not sure about this :?
Before doing this I strongly suggest you check with Steve if you intend using code and/or ideas taken from this forum and asking money for them. Especially as it seems Wealthmaster originally paid a programmer for the code he released here.
Everything is rewritten from scratch. The wealthmaster code is simply to messy. And once I understood the logic behind this strategy (which I have explained with examples in the XLS-file) the programming process was quite straightforward for me as a programmer. Also, I do not intent to request any payment for it, just protect the source code and have the working ex4-version distributed for free but with a license.
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macman
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Posts: 118
Joined: Tue Nov 15, 2011 7:47 pm
Location: Somewhere on a European waterway, on my classic (old) Dutch barge

Automatic Loss Recovery System (ALR) - read this first

Post by macman »

TheInsider » Mon Nov 03, 2014 9:24 am wrote:
macman » Mon Nov 03, 2014 8:39 am wrote:
TheInsider » Sun Nov 02, 2014 11:30 pm wrote:Hi guys!

I have now updated my version of the ALR-calculator ..........
......... making it free for anyone to download and use is not an option .....!
Hmmm .... not sure about this :?
Before doing this I strongly suggest you check with Steve if you intend using code and/or ideas taken from this forum and asking money for them. Especially as it seems Wealthmaster originally paid a programmer for the code he released here.
Everything is rewritten from scratch. The wealthmaster code is simply to messy. And once I understood the logic behind this strategy (which I have explained with examples in the XLS-file) the programming process was quite straightforward for me as a programmer. Also, I do not intent to request any payment for it, just protect the source code and have the working ex4-version distributed for free but with a license.
Thanks for the clarification. :good:
I personally have no problem with this and fully understand the need to protect code from the Ebay harversters, that said Steve is the boss around here. :?
The down side is of course forum members can no longer add ideas or suggest changes if the code is no longer readable. However, I am sure you could open a PM channel to anyone wanting to try and improve the process.

Best regards,
This account takes ALL software generated trade calls from my FXW training course and is used to develop money management routines.
http://www.mt4i.com/mt4ichart.aspx?c=ch ... udent-demo
TheInsider
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Posts: 20
Joined: Wed Aug 06, 2014 10:14 pm

Automatic Loss Recovery System (ALR) - read this first

Post by TheInsider »

Yes, you're right about ebay harvesters and similar cons that have no genuine interest to learn and use but only find an easy way to earn some extra money on behalf of others. Sadly to say, most commercial EA's today are copied and renamed products, often from free shared forums.

My intention is still to continue to contribute here, and my version of the Excel ALR-calculator is free to download and use. And my best advice is to use this calculator to understand how the different settings also changes the incremental lot size.

I will release my ALR EA soon, just need to polish it a bit first, and to write a manual for it.
macman » Mon Nov 03, 2014 11:04 am wrote:
TheInsider » Mon Nov 03, 2014 9:24 am wrote:
macman » Mon Nov 03, 2014 8:39 am wrote:
TheInsider » Sun Nov 02, 2014 11:30 pm wrote:Hi guys!

I have now updated my version of the ALR-calculator ..........
......... making it free for anyone to download and use is not an option .....!
Hmmm .... not sure about this :?
Before doing this I strongly suggest you check with Steve if you intend using code and/or ideas taken from this forum and asking money for them. Especially as it seems Wealthmaster originally paid a programmer for the code he released here.
Everything is rewritten from scratch. The wealthmaster code is simply to messy. And once I understood the logic behind this strategy (which I have explained with examples in the XLS-file) the programming process was quite straightforward for me as a programmer. Also, I do not intent to request any payment for it, just protect the source code and have the working ex4-version distributed for free but with a license.
Thanks for the clarification. :good:
I personally have no problem with this and fully understand the need to protect code from the Ebay harversters, that said Steve is the boss around here. :?
The down side is of course forum members can no longer add ideas or suggest changes if the code is no longer readable. However, I am sure you could open a PM channel to anyone wanting to try and improve the process.

Best regards,
Lagrange
Trader
Posts: 35
Joined: Fri Aug 01, 2014 1:21 pm

Automatic Loss Recovery System (ALR) - read this first

Post by Lagrange »

TambaTrader » Thu Oct 30, 2014 11:07 pm wrote:
Lagrange » Mon Oct 27, 2014 6:49 pm wrote:Hi TambaTrader,

this ALR system is in theory interesting.
I assume you did not read my posts how it behaved in the real trading arena.
Most of the time you can get out at scratch or even better or with a small loss, this is great of course.
But: once in a while you will face a MONSTER trade which did not follow all your backtests...
It will wipe all your profits and even worse.
Spread, news, brokers,LP's, when you push the ALR button.....be prepared.
edit:
also important: when you are in an ALR trade you cant afford it to ' miss the boat' so most EA's will fire a stoporder instead of a limitorder. Your broker / LP will like this!

all the best Lagrange.
Hi lagrange,

I am a very experienced analyst but a very inexperienced trader. I'm not sure what you mean in the above post? Do you mean that the loss you think you will get (by looking in the excel ALR calculator) is not a true reflection of real life because it doesn't account for everything. Why would news (for example) stop it working.

I use an ECN broker so am thinking that I don't need to worry about stop loss hunting. Why do brokers like stop orders? Is that true of ECNs too?

Shona
Hi Shona do not think an ECN broker will save you during news or low volume sessions.
I used Dukascopy and other ECN brokers, same old story; they (their LP's) play their games during news, and during low volume sessions. They want your order to reverse and/or take it with a horrible spread. You can backtest a million demo versions, the real trading arena is different. If you use a stoporder: you want a fill at ANY price agree? You want it to be filled otherwise the strategy will not work. A limit order is much safer but then you are not sure it will be filled. Agree?

cheers L.
SYKEMAKAVELI
Posts: 2
Joined: Fri Nov 07, 2014 4:35 am

Automatic Loss Recovery System (ALR) - read this first

Post by SYKEMAKAVELI »

Hi everyone,
Great thread, really enjoyed reading through it!

This thread has helped me to think about how I manage my losing trades and a random thought just popped into my head about the potential to turn those 'losers' or 'break-evens' (after application of the ALR) into winners, potentially big ones in some cases.

Correct me if I'm wrong but the discussion to date seems to assume that when a trade reaches a break-even point (or small level of profitability), the ALR manager will automatically close all trades. Instead of this, wouldn't it be possible to enter what I'd call a "transition zone" which essentially sets up a stop loss straddle for all buy and sell trades around that break-even point?

e.g.
Say that we initially enter a buy trade at 1.25 with a stop loss at 1.245. The trade goes against us and the ALR kicks in, requiring a break-even price of either 1.23 on the downside or 1.265 on the upside (completely made up numbers). Price bounces around for a while until eventually there are 5 sell and buy trades open and price reaches the lower extremity of 1.23.
At this point, instead of closing all trades, the ALR EA would set up a stop loss for all buy trades at, say, 1.227 and 1.233 for the sell trades. (A user input in the EA could be used to establish the intended distance from the break-even point of 1.23).
Price then continues to fall, stops out the buy trades (leading to a small loss), but is more than made up for by the additional profit obtained on the sell side. Upon moving through 1.227, the EA would transition from an ALR "mode" to a trailing stop loss mode of the user's choosing e.g. moving average, fractal etc

The obvious downside to this, which I know you're all screaming out, is that price could easily fluctuate and take out both stop losses, leaving us in a worse-case than we would have been if we just let it break-even. That's true, and that will probably happen in a fair proportion of the cases but I think it would be worth investigating whether the asymmetric upside gained from those trades that 'keep going' is enough to offset those trades that do stop out. Remember, the more turns that the trade makes in the ALR, the larger the open trade size - this method could use this to our advantage once it finally makes a strong move in either direction.

Something that I occasionally employ in my trading is scaling into winners. Once I reach a certain number of pips, I will increase my trade size, move my stop loss to a position where the entire trade will, at worst, break-even, and then repeat this process a few times (I also 'lock-in' a few pips each time).
An extension of the point I made above is to allow this same scaling-in feature once a losing trade finally reaches one of the recovery zone's extremities.

Going on from the example before, instead of transitioning straight into the trailing stop component of the EA, the EA could house a scaling-in feature which would be triggered, say, 30 pips below 1.227 and continue for 4 (or whatever) iterations before moving to a trailing stop basis. The impact of scaling-in further, on top of an already large lot size relative to what one would normally trade, has the potential to be quite dramatic. And to me, that's what it's all about. Protecting your downside, which, apart from those cases where the max ALR turns are reached, we've done well, and then allowing your profits to be asymmetrically large. Of course, this could all be proven to be rubbish by back-testing but it could have legs?

I'm happy to help with the maths around the scaling-in part if other people think this is a good idea.

Thanks.
mastru84
Posts: 2
Joined: Sun Nov 09, 2014 11:26 pm

Automatic Loss Recovery System (ALR) - read this first

Post by mastru84 »

TheInsider » Mon Nov 03, 2014 2:08 pm wrote:Yes, you're right about ebay harvesters and similar cons that have no genuine interest to learn and use but only find an easy way to earn some extra money on behalf of others. Sadly to say, most commercial EA's today are copied and renamed products, often from free shared forums.

My intention is still to continue to contribute here, and my version of the Excel ALR-calculator is free to download and use. And my best advice is to use this calculator to understand how the different settings also changes the incremental lot size.

I will release my ALR EA soon, just need to polish it a bit first, and to write a manual for it.
Hi everyone,
Great thread, really enjoyed reading through it!

Can't wait to try your ALR EA Insider, since i find your modified EA much simple that the others have done, even if have to say that spider's one work pretty good to...
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macman
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Posts: 118
Joined: Tue Nov 15, 2011 7:47 pm
Location: Somewhere on a European waterway, on my classic (old) Dutch barge

Automatic Loss Recovery System (ALR) - read this first

Post by macman »

mastru84 » Mon Nov 17, 2014 5:12 pm wrote:
Hi everyone,
Great thread, really enjoyed reading through it!

Can't wait to try your ALR EA Insider, since i find your modified EA much simple that the others have done, even if have to say that spider's one work pretty good to...
Have you actually run the EA?

I did and got blacklisted at GP broker - http://www.stevehopwoodforex.com/phpBB3 ... =15&t=3918 refers. :o

Would be interested to hear from anyone who has actually successfully run the modified EA
This account takes ALL software generated trade calls from my FXW training course and is used to develop money management routines.
http://www.mt4i.com/mt4ichart.aspx?c=ch ... udent-demo
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