Gday: a D1 Stochastic OB/OS trading robot

[AltosT]

SERIOUS WARNING

• Matters of general interest
  
  Read this post:
  http://www.forexfactory.com/showthread. ... ost4923611 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.forexfactory.com/showthread. ... ost4431794, at the bottom of the post.
  
  Useful utilities/EA's/scripts
  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.forexfactory.com/showthread.php?t=89371
  Account equity analyser: http://www.forexfactory.com/showthre...16#post4693716 Also 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?f=5&t=15

Hi Steve, the above link to Sams trading cannot be correct - I get an error from FF. I don't know who you refer to as Sam unless it is Sam Seiden's Supply/Demand zones thread ? Could you confirm/correct ?
Many thanks,
AltosT

[DING]

Hi

Just a quick quistion.

Does it matter which Empty4 criminal platform we using for this ea.

I use GFT Empty4.

bot criminals have different times, therefor it can be different results.

Peter

Hi fxozgirl,

Could you tell us about your broker and its GMT zone ?

[Forex37]

Hi all,
I wonder if this is a variation of good ol`Lindencourt daily - 2 EAs have been produced by Steve before?
Thanks and regards

[fxozgirl]

Hi all,
I wonder if this is a variation of good ol`Lindencourt daily - 2 EAs have been produced by Steve before?
Thanks and regards

Hi F37,

yes it is... I fully disclose this information in my thread on FF
The link is in post 1 but here it is again

http://www.forexfactory.com/showthread.php?t=299524

[fxozgirl]

Stoch/Rsi et al are bound oscillators folks. This means they have a range of 0-100. If a pair reaches 100, that does not mean it is going to fall. It can continue rising for yonks and yonks and yonks. Yes, as Bob has taught us, it will fall eventually, but not just because it has hit 100. If the pair continues rising, the oscillator will remain at 100.

It is your refinement to all this that attracted my attention, Shelley. The need for the signal line to move out of ob/os looks like the stroke of genius here. Of course, just because a pair moves out of ob/os does not mean it cannot hurtle straight back again. We shall see.

This is key everybody, trades can run for days/weeks ob/os precisely for the reason Steve mentions above, the indicator is bound 0-100. So this is exactly why I wait for the signal line to cross back over 80/20 and again Steve's correct in that it is the signal line that is most important not the stoch.

Two of those AUDxxx buys and a GAud sell have triggered, so I am now ridiculously exposed to AUD.

This is what all those balance/only trade a currency twice filters are all about. UseZeljco will allow us to, say, buy ACad, but then stop us buying the AUD again. The only trade twice filter will allow a buy and a sell of a particular currency, then stop us from further involvement. The principle is that we are less exposed to dramatic market movements if our trades maintain this sort of balance. There are more details in the user guide.

This is also a very important point and one of the reasons I would personally prefer to manually attach the ea once I identify a potential trade...if using the fully automatic function then I definitely think the UseZeljco function should be turned on to provide some protection from overtrading the same currency.

Also re: AUD pairs, I generally restricted myself to buy's only (when AUD is the first currency) due to the high spread costs

One more thing I would like to make sure anybody who tries this system is absolutely clear on...

Trades are taken so they are divisible by 3, which allows us to stagger our exit, thereby providing a level of security along with the ability to also let the trade run for (close to) maximum profit.
What needs to be remembered though is that if a trade does not make break even the exit strategy is as follows:

1. Trade is closed at the cross of the stoch and signal lines (confirmed at the close of the candle)
or
2. Trade does to full stop loss...this means your loss is 3 x your stop loss
eg. Stop loss is 200 pips - if trade goes to full stop loss then you are 600 pips in the hole

So you must make sure you have the margin and intestinal fortitude to handle this.
With that being said, it is very rare for a trade not to move 50 pips (and hence reaching breakeven) on the daily chart, provided you are patient and wait for the correct and CONFIRMED signal.

[SteveHopwood]

1. Trade is closed at the cross of the stoch and signal lines (confirmed at the close of the candle)

Just to let you all know that I forgot this bit. I will add it sometime soon. In the meantime, just be aware that this is not yet a feature in Gday.

[gaheitman]

Steve,

I did some backtesting in ST and saw some things I didn't quite understand, so I decided to check under the hood. I'm not quite sure I understand what you are doing in the top of LookForTradingOpportunities();

The code:

Code: Select all

   GetStoch(0);
   StochStatus = neutral;
   if (StochSignal > OverBought) 
   {
      StochStatus = ob;
      TradingStatus = waitingtosell;
   }//if (StochSignal > OverBought) 
   
   if (OverSold && StochMain < OverSold) 
   {
      StochStatus = os;
      TradingStatus = waitingtobuy;
   }//if (OverSold && StochMain < OverSold)    

The sell part looks good, but then I expected the buy part to be parallel. Shouldn't the buy test be:

Code: Select all

   if (StochSignal < OverSold) 
   {
      StochStatus = os;
      TradingStatus = waitingtobuy;
   }//if (OverSold && StochMain < OverSold) 
   

I've been skimming through the text here and at FF, but couldn't find anything to explain the difference.

George

[SteveHopwood]

Nice one again George.

I had made the edit you describe, but somehow lost it again - probably got caught in a bout of ctrl+Z to get rid of some copy/paste bloops.

Fix in post 1 folks, and 'tis an essential one.

[Antra]

Good luck with the EA!
Great to see another Aussie on board ...not to mention a FEMALE!!!!!!

[gaheitman]

Nice one again George.

I had made the edit you describe, but somehow lost it again - probably got caught in a bout of ctrl+Z to get rid of some copy/paste bloops.

Fix in post 1 folks, and 'tis an essential one.

Ah, yes, I've done my share of ctrl-z/ctrl-y replays. Back and forth, trying to get back to the most stable code. It's always so disappointing when you get to the end of the line and you can't quite undo enough.

Hmm, I'm sure there's a life lesson in there somewhere.