Stretchy Slope. Blame Bunker for this one.

[SteveHopwood]

SERIOUS WARNING

• Most Forex traders lose all their money.
  Using the robot posted here in trading Forex does not guarantee success.
  Trading this robot could lead to serious financial loss.
  Trading this robot without understanding its underlying trading strategies guarantees traders will lose their money.
  This is not a set-and-forget ea. There is no such thing and anyone who tells you there is, is either a liar or an idiot. This EA will need manual intervention.
  At best, a trading robot is only 90% as good as the manual strategy it trades. At best. At worst, it can be much less effective. If the strategy is rubbish, so is the robot.
  To trade this robot, you have to understand:
  • - How to use EA's.
    - How to use the Slope indi from Nanningbob's 10.2 system:
    • - first visit Jemook's thread at http://www.stevehopwoodforex.com/phpBB3 ... 562#p17562 Here you will find where to start reading about Nanninbob's 10.2 and learn to trade. Bob's stuff is the best thing to arrive during my time trading Forex. It is massive. Jem's thread will help you get started if this is new to you. I once stated that Recovery may well turn out to be Bob's lasting legacy to us retail Forex traders. I was wrong; this is actually going to be Slope, and it will have a part to play in everything we do from now on.

Background
In this post http://www.stevehopwoodforex.com/phpBB3 ... 611#p19611 , Bunker posited this:
"The following theory is the elastic band pattern:

Imagine 2 people caught together inside one elastic band; one person weighing 300 pounds and the other one weighing 75 pounds. They try to distance themselves from one another. They walk and walk and they reach a point where the elastic doesn’t stretch anymore. What happen ?
OK, I never tested it, but I’m pretty sure that the 75 pounds one will fly back to point 0.

Now if we apply that theory to this awesome, extraordinary, incredible, awesome (did I say that already) indi with the analogy that D1 is the 300 pounds guy and H1 is the 75 pounds one, chances are that when the elastic band is stretched, H1 will fly back to D1.

But what is the definition of “stretched”. This is something we have to define (bring your brain power here pls!!), but here is a first attempt. "

Then followed a few illustrative charts, so read the post for more details.

This EA attempts to trade as Bunker suggests. Trade exit is a bit of a problem, and depend on the usual suspects of tp/sl and mptm stuff. Traders unfamiliar with mptm, go to the thread linked at the bottom of this post and download the user guide; it explains the basic functions contained within SS.

Slope
Guys, you really need to understand what the Slope indi tells you, so do not take this brief summary as The Definitive Statement. Basically, Slope tells us this:

• - >= 0.4: look to buy and take profit somewhere along the line.
  - >= 0.8: look to buy and hold the trade, and add to the position as the market continues to rise.
  - <= -0.4: look to sell and take profit somewhere along the line.
  - <= -0.8: look to sell and hold the trade, and add to the position as the market continues to fall.

We have zznbrm to thank for his coding of Slope. Without it, this thread could not exist. Thanks, zznbrm. Frank Muir describes himself as "I only did a couple cosmetic things to that indi." but they are damn good cosmetics, so out thanks to Frank also.

Slope depends on having a full content of bars on your chart. If you start a new demo, there will be a lot missing. Go to http://www.stevehopwoodforex.com/phpBB3 ... 189#p14189 to find out how to replace them.

I leave you to work out what most of the Slope inputs are for yourselves - they should be pretty obvious.
StretchDistance is the distance between the D1 and M60 Slope required to trigger a trade.
SnapbackDistance is an experiment is waiting for the 'snap back' to start. SS looks back at the previous 3 candles and finds the lowest lower time frame Slope value. Slope has to have moved in the right direction by SnapbackDistance to trigger a trade. Turn off this filter by setting it to zero.

In conclusion
Let's see if this puppy has a decent tail to wag.

Have fun.





Matters of general interest

Read this post:
http://www.stevehopwoodforex.com/phpBB3 ... p=800#p800 Newbie traders, read this for inspiration and warning. Those of you who have suffered losses, read it for inspiration. There is a thread devoted to Sam's trading method at http://www.forexfactory.com/showthre...25#post5118825

Masterly summary of hedging: http://www.forexfactory.com/showthread. ... ost4977179

EA coding
I receive may requests to code EA's. Traders, if I code your EA for free, then I will share it here. If you want me to code your EA without sharing, then my fee is $100 payable into my paypal account. I explain why at http://www.stevehopwoodforex.com/phpBB3 ... p=803#p803, at the bottom of the post.

Useful utilities/EA's/scripts
Matt's chart-population script at http://www.stevehopwoodforex.com/phpBB3 ... 5733#p5733. Use this every time you start a fresh platform.
MaryJane has posted a fabulous utility to allow us to resize EA input windows: http://www.forexfactory.com/showthread.php?t=299017
Multi purpose trade manager: http://www.stevehopwoodforex.com/phpBB3 ... p=516#p516
Account equity analyser: http://www.forexfactory.com/showthread. ... ost4693716Also at http://www.forexfactory.com/showthread. ... ost4709098, which includes a template for both USD and the Euro.
Past-trades display indi by squalou; shows a graphical display of the success/failure of trades in your History tab. Breathtaking piece of work. http://www.forexfactory.com/showthread. ... ost3830610
My shell EA – the code I use to produce EA's so quickly. http://www.stevehopwoodforex.com/phpBB3 ... p=803#p803

[Bunker]

Fantastic!! and unbelievable!

I don't know how you do this...

You ‘ve GOT to have a team of coders working for you. !! I’ve posted this just yesterday!!

At the risk of sounding like a broken record:

THANKS again Steve.

Bunker

[xrismak]

Thanks Steve,
will play a bit of scalp the pips on the side with this one that's if I can eventually take time to figure it out. Hey Bunker looks like you have a new toy for us here and it ain't even Christmas yet .

[Bunker]

Thanks Steve,
will play a bit of scalp the pips on the side with this one that's if I can eventually take time to figure it out. Hey Bunker looks like you have a new toy for us here and it ain't even Christmas yet .

xrismak,

I've been following these (trading and coding) Gurus for several years now and believe me, it has been Christmas every day since then.

Cheers mate (and let us know you success with this one!)

Bunker

[droland]

sorry Steve. My brain has reached it idiocy stretch limit.

So many EA's we should be following.

I'm still testing some of the old ones but I will catch up.

[Bunker]

Thanks Steve,
will play a bit of scalp the pips on the side with this one that's if I can eventually take time to figure it out. Hey Bunker looks like you have a new toy for us here and it ain't even Christmas yet .

xrismak,

I've been following these (trading and coding) Gurus for several years now and believe me, it has been Christmas every day since then.

Cheers mate (and let us know you success with this one!)

Bunker

My first 2 trades with Stretchy (BE).
I think this EA has legs. I set "StretchDistance" to 1.3.
I'll test 1.2 for the rest of the week hoping it will get more trades. I will also play with MPTM settings.

Cheers!

Bunker

[fxozgirl]

I set this up around London open with StretchDistance 1.2, I also added the ShelleyNow EA (with no pairs added) to manage the trades with 50 pips AdaptiveTP. Not sure if this is the best way to manage the exit or on a per trade basis, will probably need to see when trades get taken.

Got up this morning and both trades closed so a nice 100 pips to start with.

Bunker, generally speaking, I would expect we will get the 'pull back' during the Asian session and the 'release' around or before London Open. I think this method would probably get us in a bit earlier???

[SteveHopwood]

I set this up around London open with StretchDistance 1.2, I also added the ShelleyNow EA (with no pairs added) to manage the trades with 50 pips AdaptiveTP. Not sure if this is the best way to manage the exit or on a per trade basis, will probably need to see when trades get taken.

Got up this morning and both trades closed so a nice 100 pips to start with.

What imaginative thinking. I am impressed. Again.

[Bunker]

I set this up around London open with StretchDistance 1.2, I also added the ShelleyNow EA (with no pairs added) to manage the trades with 50 pips AdaptiveTP. Not sure if this is the best way to manage the exit or on a per trade basis, will probably need to see when trades get taken.

Got up this morning and both trades closed so a nice 100 pips to start with.

Bunker, generally speaking, I would expect we will get the 'pull back' during the Asian session and the 'release' around or before London Open. I think this method would probably get us in a bit earlier???

Thanks for your post fxozgirl.

Brilliant analysis as usual. I agree with you at 100%!

Stretchy was probably bored during London and NY sessions. The market was trending like there is no tomorrow. The Asian session happens during my evening….so I can see the stretch being shaped but I don’t see the trigger (London = 3AM for me). This is why I’m SO GRATEFUL to our friend Steve for this EA.

I got two other trades (4 total) and I suspect they made a lot of pips before retreating to BE. I also added the ShelleyNow EA but there must be something I’m missing. Although I left the PairsToBuy and PairsToSell blank, it traded multiple pairs as soon as I press OK. I have some reading and learning to do !

The MM aspect seems to be my big challenge (doesn’t seem to be one for you). I’ll use MPTM for now and see how it goes.

I really believe Stretchy gives an excellent entry point . I also use StretchDistance of 1.2 and it seems to do the job. I haven’t seen a gap going more than 1.6 so far. Let’s keep those demos running!

Cheers!

Bunker

[garyfritz]

Oh, you definitely get gaps bigger than 1.6. AUDCHF was at 2.5 at 08:00 GMT 2012.07.12, CADCHF at 2.1 @ 00:00 7.17, etc. But the pair doesn't generally move very far once it gets to 1.3-1.4 or so, even if the gap keeps increasing. Waiting for gaps of 1.8 or more would be a safer trade, but you wouldn't get very many of them. I think the 1.2-1.5 range is probably the right area, especially if you give it at least 20-25 pips breathing room.