Callout To Coders - A TP/SL indicator for 10.2

[FXTrucker]

Hi Jemook I think this is an interesting and useful idea and I want to share some thoughts about it.

First let describe what I understand you want to calculate by using a specific example for just one bar. This will be the 0800 GMT bar on the H4 (London open). The 0800 pivot point is calculated using the Hi, Low and Close ( (H + L + C ) / 3 = PP ) of the previous 0400 bar . The Max Gain or Max Loss is calculated using this pivot point and the Hi and Low the 0800 bar ( ABS ( H – PP) & ABS ( L- PP ) and then using some kind of trend indicator to define which value is max gain and which is max loss. Probably this would be TMA Slope since that is what you are defining your trend direction and strength by but what time frame would be best?

Since it is impossible at the open of the 0800 bar to calculate any thing other than the pivot point because the high and low will not be established until the open of the 1200 bar you are estimating the Max Gain and Max Loss values for 0800 by averaging them for some number of past bars. If you take a simple average of say the last 6 bars this may not be a good estimate since the volatility of price action changes depending on the time of day and also on the day of the week.

I wonder if it might make more sense to average the previous 0800 bars for the last five days for the H4 and lower time frames. On a daily time frame it might also make sense to average the values from 5 10 15 and 20 days back to get a good estimate.

[Lifesys]

Hi Jemook
Thanks for all your contributions.
I find the simplest compromise is using MPTM SL & TP using the Atr settings. I ALWAYS use these even if playing around with baskets. MPTM automatically puts them on so I can relax more and using real trader volume and not "nervous pennies". My values were decided over months of data logging - not days or weeks. Proportions of 0.5 & 1.2 Atr on H4 chart. Averages 65% success with 2.4 R:R.
Just looking at pair DP deviations over a couple of weeks does not give an accurate picture of longer term values. Also being in rural Australia I require a hard SL & TP - 'just in case'. I also use MPTM "Shirt Protection" or EA MaxDrawDown which flies against the no SL policy, but I am not trading cents.