POOLER/SAN Stunning generosity

[Pooler]

Here's a brief idea of what I'm trying to achieve.

See spread sheet. Page 1 has trading session times. Page 2 has a basic outline of what I'm describing below

You trade the various sessions. The settings for opening times on the EA is critical. Thanks That Trader Guy for this idea.

Session 1 open Tokyo 23h45--07h30 not Sydney except for Jpy or Aus pairs
Session 2 open 07h45--12h30--London--not Frankfurt
Session 3 12h45-18h00 New York

Have a look at your charts--you'll see that most opening sessions create a price spike. This is what you're hoping to capitalise on. If this doesn't happen then there's usually a major news announcement following the opening. Be aware of these--thats all.

The yellow highlight on the spread sheet is when various sessions converge--i.e. one session is opening and another session has a couple of hours before close. The London--New York overlap tends to be the busiest.

Two strategies are overlaid to create Poolmentum

This is what I asked Mantkinth to code (Thanks Mate) and is what we're busy testing.

First is the Retracement Strategy (RS)-- Long trade e.g. below. I use these settings for EU. With pairs like GJ, EA the gaps will be bigger.

Level 1 Sell Limit (SL) OR 15 pips (from PL) Lot .02, TP% 100%. So it must retrace to PL to take 15 pips profit
Level 2 (SL) OR 30 pips (from PL) Lot .02, TP 50%. This is how I've been testing the Ver 5ab so far.
Level 3 (SL) OR 60 pips (from PL) Lot .03, TP 50%.
Level 4 (SL) OR 100 pips (from PL) Lot. 04 TP 50%
Level 5 (SL) OR 150 pips (from PL) Lot. 06 TP 50%

2 options. 1) No more levels after level 5. Here is where we need a recovery plan--or 2) we can continue to level 7 as the strat below will hedge more effectively than previously

Second is the Momentum Strategy (MS)

All settings adjustable. All trades below take 1 lot partial profit when TP hit and 1 lot cont. to trail with Chandelier Trailing stop. I've attached the Chandelier Indicator but it is coded into the EA--its good to have it on the chart as a visual of how the SL is trailing price.

1st Buy stop 15 pips Lot .02. SL at PL (15 pips), TP next (RS level) 15 pips. Worst case scenario. If trade turns and hits SL it should be less than 15 pips because Chandelier would have moved it up slightly. So because RS trade takes full 15 pips profit you come out slightly ahead. If not, break even's the worst that can happen (Give or take some spread)
2nd Buy Stop 30 pips Lot .02 SL previous MS level. TP 1 lot next MS level--chand trail remaining lot
3rd Buy Stop 45 pips. Lot .02 SL at 2nd MS level. TP 1 lot next MS level--chandl trail remaining lot
4th Buy Stop 60 pips. Lot .02 SL at 3rd MS level. TP 1 lot at RS level 3 --chand trail remaining lot

No more levels. Chandelier to start at Kv 3. When price hits 4th Buy Stop (MS) level tighten the Chandelier by .5 (to Kv 2.5)

Here's a less technical description of the overall strategy.

Imagine an Archer aims a bow and arrow into the sky.
You have a fair idea when he will release the arrow (session time) and a fairly good idea of how far the arrow will go (depends on the currency pair)
As he releases the arrow the most velocity (volume) is at the point nearest to the bow (session opening) and that's where you want your buy stops.
But you also want to take small bites on the way up in case a strong wind knocks the arrow back down before it reaches the top of its arc (Partial closes) but if that wind is not there you want to take advantage of the arrows full flight to the top of its arc (Chandelier trail).
This is the Momentum Strategy
You have an idea of where the arrow will run out of speed (momentum) reach the top of its arc and plunge back to earth and that's where you want your Sell limit. (Retracement Strategy).

On a windless day the arrow should turn and head straight back down but unfortunately this Archer operates in a very windy environment.
As the arrow heads back down a strong wind from below picks the arrow up and sends it higher but that's ok as more Sell limit levels (RS) are placed which causes the TP to stay near the arrow for when the wind drops again.
At the same time you still have your partial buy stops open and you've taken some (partial) profits already.
When the wind drops the Chandelier will take care of the arrow (MS partial opens) and TP will be filled (RS)
Even if the arrow slips and barely gets up into the sky--you've got that covered.
So hopefully whether the wind blows, gusts or stays away--as Mankinth says--its all good.

Let's see.

[nubika]

Hi Pooler,

Any further news on the EA and how testing is going on?

Frank

[Pooler]

Hope to be done by Friday latest

[Pooler]

Hi all,

Have thought of a far better solution for large draw down and floating open positions on Retracement Strategy.

Depends if it can be coded. Mantkinth is on it.

A luta Continua

[germanslobo]

Dear Pooler: Thanks for your EA.

What happen if EA reach 10 level?. Will EA open more positions?. Can I setup more levels?.

Thanks. Best Regards.

Hi all,

Have thought of a far better solution for large draw down and floating open positions on Retracement Strategy.

Depends if it can be coded. Mantkinth is on it.

A luta Continua

[Pooler]

Hi,

With the new EA I've actually reduced it to 7 levels. Its easier to play with the 3 factors available to you then just opening more levels. I.E Find the correct balance between the OR level (distances between levels), the lot sizes and the TP % per level.

As I've mentioned in various posts--
Essentially the current EA has this weakness--if price does not retrace you end up with lots of trades open with high draw down--and the profit target is too small too justify this. I tried to solve this by hedging trades in the opposite direction. It works (to a degree) and is profitable but sooner or later the hammer is going to drop with a trending currency pair.

The solution is then obviously to set max 1-2 levels to lower your risk--rather than more levels/grids at set levels hoping that price will slow down/turn. Then if price trends --wait for signs of price losing momentum then set the next TP as close to price as what the broker will allow (which is normally 10 pips).

But at the same time you want to be in the direction of the trend. The Archer analogy I used in a previous post decribes this.

This essentially means that the original logic of the EA has to be changed. This is not something that any coder relishes. Mantkinth has brought us this far---so if anyone can step up and help it would be greatly appreciated.

[peterke]

Pooler, hi Here's a thought on resolving the problem

What interested me about this EA initially is that its a way to trade ranging pairs, and pairs that are not trending strongly. For strongly trending pairs we are looking to go with the trend(plenty of EA's do this) for all others looking for a retrenchment.

So what we are looking for is a definition of non- trending plus an emergency exit.

I think you have the emergency exit with the hedge so why not consider using the slope indicator as a filter - eg if the feeling is that a pair is likely to trend at 0.4 and strongly trending at 0.8 then using this strategy on pairs less than say 0.6 (or whatever) should eliminate most of the trenders.

Some experience may then lead us to avoiding certain pairs for this strategy because of their trading behaviour but that's for the future

Plenty of threads here use the slope indicator and Steves EA shell may have it built in?

Your thoughts?

rgds

Peter

[Pooler]

Pooler, hi Here's a thought on resolving the problem

What interested me about this EA initially is that its a way to trade ranging pairs, and pairs that are not trending strongly. For strongly trending pairs we are looking to go with the trend(plenty of EA's do this) for all others looking for a retrenchment.

Hi Peter,

Thanks for your post. I have considered various filters. At the moment I'm concentrating on trying to benefit when both situations (ranging and trending) occur. I find that all pairs will have their moments when they do both--some more than others. I'm working on a solution that works irrespective of whether a pair ranges or trends because I've given up on trying to "read" the market and I haven't yet found any indicator that is accurate enough to rely over the long term.

A Luta Continua

[Pooler]

Hi Peter,

A bit more on what I'm trying to achieve. Lets forget about trend trading for the moment--as you rightly said there are plenty of EA's and logic for that.

To solve the problem of being caught with a price "runner" with the existing retracement strategy that loads up levels and lots that are pre-set in the EA (and creates floating trades and draw down)---I thought of the following.

The current EA is set to calculate where to place the TP by calculating OR (grid spacing), TP% and lot size to get to your profit target

Using this long trade eg. on EU.
Set sell limit level 1 OR 15 pips from PL, TP 50%, lot size .03
Level 2 15 pips, TP50 %, lot size .05.
The idea is keep TP as close to price as possible--you want to fill TP and get outta there.

If price goes 10 pips past level 2 (I'm guessing here) then EA waits for clear indication that price is changing direction. (there are a host of indies that can be used but Stoch etc jump to mind). After at least 2 candles that are moving strongly back down the EA calculates above to ensure that TP is placed as near (below) to price as possible.

Excuse the African analogy. It's like a scavenger following a wounded buffalo. When it's still got energy they keep their distance but as it weakens they come closer and closer so when it finally drops they're in. If they get it wrong though the buffalo will give them a good kicking

I've done this manually by taking the next pending trade in line--increasing the lot size dramatically then manipulating the price till its as close as the crim allows (normally 10 pips) to the price. When it fills the TP leaps right up to the price.

The idea is to throw that TP on top of the price (or as near as possible) when it looks like its slowing down/turning. It's seems a lot better than filling 7 levels and praying that price turns enough before your margin runs out. But it means changing the basic original code of the EA.

[Solarwind]

Hi Peter,


The idea is keep TP as close to price as possible--you want to fill TP and get outta there.

The idea is to throw that TP on top of the price (or as near as possible) when it looks like its slowing

If you use hidden TP,SL,( stealth) the crim will never know. I use a TM with this feature and I have no problems getting as close as I like.