Trading Higher / Trading Lower (EA) --> Daily Break Out!

[KiForex]

Trading Higher / Trading Lower (EA) --> Daily Break Out!

Dear forum members
I am looking for a EA to be coded using a combination of what is already done.

Don't be scared, I know this is a long post. But I tried to write everything in detail.

Basically this method is straight forward, but since I trade it on 26 Currency pairs it takes me a lot of time setting it up every day..

This method makes one trade per day, per pair, using the daily chart..

What I would like to have in this EA

Logic / Basic Idea
1. Trade on break of daily high or daily low. But not on a direct break. I would like to have an option in which I can specify the numbers of pips away it should enter the trader. I do this based on my experience, the PA, Trend, etcetera.

Trades Placing
2. Two Trades are placed using pending orders after the previous day is finished (Buy stop / Sell Stop)
For example:
Day 1: Daily high is 1.3200 --> EA Places pending buy on 1.3215 --> Based on Daily high + 15 pips
Day 1: Daily Low is 1.3100 --> EA Places pending sell on 1.3085 --> Based on Daily Low + 15 Pips

Stoploss Fixed
3. Need a hard stoploss! Based on Day before low/high + X number of pips
Building upon the previous example, if the pending orders are placed they will both contain stoplosses.
Example
Day 1: Daily high is 1.3200.. EA Places pending buy on 1.3215 --> Stoploss at 1.3185 --> Based on daily low + 15 pips
Day 1: Daily Low is 1.3100 --> EA Places pending sell on 1.3085 --> Stoploss at 1.3215 --> Based on daily high + 15 pips

Stoploss Variable
4. Also the option not to use a stoploss --> place a manual one.. Because I sometimes decide stoploss on other factors like round numbers and S&R areas.

So these are the main things. For 5 days a week the EA does this. Now for the other handy options:

Take Profit per trade/pair
5. Option to take profit based on number of pips
6. AND Option to take profit amount in dollar (well in my case euro’s) So if the trade reaches €7,00 trade is closed.

Trades Terminating IMPORTANT!
7. If the trade (pending order) was not triggered! Because of an inside bar..
The two pending (BUY and SELL) are deleted..--> So that the next day that we start with fresh pending trades!

IF POSSIBLE.. Take Profit based on all open trades (maybe another EA for this is needed which watches over my account)
8. IF POSSIBLE.. Option to close all trades when say all the trades together have reached €50,00

Sunday Candles:
9. It would be nice if the EA could avoid Sunday candles and place the trades (as specified) for Monday based on the High/Low from Friday. Sometimes Sunday high works and sometimes they don’t but I want to avoid them.

Visual reference
10. IF POSSIBLE Visual reference on the chart of current daily high and low
I found that out that the robot from Steve Hopwood on FF offers such a visual reference
Thread link: http://www.forexfactory.com/showthread.php?t=280999
Robot Link: Brijon Concept of Threes auto trading robot by Steve Hopwood.mq4

EA Usage:
11. The EA will be used on a lot of pairs.. I currently have 26 pairs in my portfolio so it should be usable on all those, using different parameters per pair.
I think “magic number” variable offers this function but I could be wrong!

Other minor variables
11. Lotsize: Minimal lotsize should be possible --> so 0.01
12. Trade comment option based on which day the trade was placed!
13. Send alert that trade entered both on Empty4 and Email
14. Any other suggestions from the coder or others are welcome!

Helpful stuff for the coder:
1. Basicly this is like the EA of Brijon (see link above) but a lot of variables are not needed.. like trend direction and all the other fluff..
2. I also see that Mr. Forex-TSD made a EA very similar to what I search for in this thread:
http://www.forex-tsd.com/suggestions-tr ... reaks.html

Why this EA:
Trading on like 26 pairs if everything works out can give A LOT of pips (ranging from <500 to 1000 pips or bigger per day).. Off course one should manage the trades. So sometimes this method makes me a lot of pips a day and sometimes I can lose a lot too.. And! Yes I know it will kill my account during consolidation ..

So if anyone is interested.. please help me out..

Thanks a lot,

KiForex

[DragosDanescu]

IF POSSIBLE.. Take Profit based on all open trades (maybe another EA for this is needed which watches over my account)
8. IF POSSIBLE.. Option to close all trades when say all the trades together have reached €50,00

That's the easiest part, actually....

EA Usage:
11. The EA will be used on a lot of pairs.. I currently have 26 pairs in my portfolio so it should be usable on all those, using different parameters per pair.
I think “magic number” variable offers this function but I could be wrong!

Yes, magic can do this.
Well, if I got time over the end of week, maybe we can run it in backtester
Have you made some backtest on this or you already demoing it and for how long?

Cheers,Dragos

[JulesvH]

ok, another suggestion i'd like to see.
Instead of the previous day high/low breakout, can it be coded to choose how many days back the EA should look for a breakout of the x days highest high / lowest low (+pips) ?

And please with the usual trend detection options. They can always be turned off if not needed.

[KiForex]

IF POSSIBLE.. Take Profit based on all open trades (maybe another EA for this is needed which watches over my account)
8. IF POSSIBLE.. Option to close all trades when say all the trades together have reached €50,00

That's the easiest part, actually....

EA Usage:
11. The EA will be used on a lot of pairs.. I currently have 26 pairs in my portfolio so it should be usable on all those, using different parameters per pair.
I think “magic number” variable offers this function but I could be wrong!

Yes, magic can do this.
Well, if I got time over the end of week, maybe we can run it in backtester
Have you made some backtest on this or you already demoing it and for how long?

Cheers,Dragos

Hi Dragos,

I actually traded this method live for 11 days..(I know that is not a lot)
On a small €141 euro account.. it took my account to €265,33 in 11 days
That an 88% increase in equity.. Yes I know I risked to much per trade but I thought let me just try the method.
I traded this method using 0.01 lot size which in euro's is 0.07€ per pip..
See my results on the picture below..

Some things to mention..
I did not continue this method because.. a lot of pairs got into consolidation..
So what happened! Long trades got kicked in.. Stoploss got hit.. Short trade kicked in.. stoploss got hit.. this happened for a few JPY pairs so a lot of profit was lost..
Equity got lower.. got margin calls... Also there where some holidays then..

See picture below!

Maybe the trend-option can avoid this..!

This system is a beast! but it needs watching over it.. don't expect to let it run on its own..
Watch the charts for consolidation point and check the trend.. Watch out for retracements..
Also don't be greedy..

Daily breaks trading is one of the most easy methods.. but is needs observation.. not 4 hours a day.. but a few times should do it..

[JulesvH]

Maybe try it with only buying if the price is above 200EMA (daily) and only selling if price is below it.
I tested something like this but due to a lack of time stopped it.

[KiForex]

Hi Khalaad,

Thanks for the reply.. yes you are right it needs very good trade management..

Basically we should not call this an EA but a Semi-EA...

For me the main purpose is that it can place the trades for me.. It is very very time consuming to place all of them one by one.. If I would do that for a few weeks I would turn into a zombie..

I am not familiar with Gann trading..

I trade intra-day using only fibs and Supply and Demand zones... on the H1 chart..

[KiForex]

ok thanks I see.. they look nice.. now let see what our friend dragos comes up with

[KiForex]

Hi Someone still up for the challenge to write a robot for the method..? I am willing to pay €50..

Let me know..

[garyfritz]

Just saw this...

KiForex, I've traded a VERY similar system for almost a year. I enter at the previous day's High/Low and take a small PT, 15% of ADR. That's usually about 18-22 pips. The SL is generally about 3-4x bigger, but the average loss is only about 2x the average win. I don't like the high R:R but I tested it a lot and I haven't found any other combinations that work well. As you said, the SL losses will kill you so you want to minimize those.

Observations based on my experience:

* As Khalid says, sometimes it works, sometimes it doesn't. It DOESN'T work a lot more often than it works.

* If you trade it blindly on 26 pairs, I think you will lose bigtime. You definitely would with my approach.

* I do two things to improve my edge: I only trade when the previous day had a narrow range (increasing the chance of a breakout), and I only trade the pairs that have worked well in the past. VERY few pairs work well with this over time. I only trade the 4 strongest pairs. With those changes, it can work very well.

Breakout.gif

I'd be VERY interested to hear exactly how you trade it (when you take trades, what TP/SL you use, etc), and how it works for you with your approach, without the changes I've described. My approach is 100% mechanical, and it sounds like yours isn't. But it looks to me like you're making a lot more pips than I am. Maybe we can combine your approach with my improvements and really get this working well!

Gary