10.4 A Complete System

[nanningbob]

First: thank you Bob for this new system, and all the work you put into sharing it!

I attach some scripts to make it easier to put pending orders, and modify the stop losses take profits. These are drag'n'drop kind of scripts, that means you should drag the script onto the chart to the price level you want, and release the mouse button there.

If you drag the buy pending script above the current price it will set a buy stop order, if you drag it below the price it will open a buy limit order (opposite for the sell script).

The dragdrop_closeall script only close the orders of the chart it's dragged on.

The dragdrop_modify_TP and SL scripts will modify the stops and take profits of all orders of that pair to the level the script dragged on (easier to set the breakeven level on multiple open orders).

Please try these scripts first on a demo, if you plan to use it on a live account.

Thanks, I dont know if I will take any trades tomorrow or not. May have to wait until I get back but check em out.

[MEStake]

Wow, thank you. A very nice system.

But there is something I don´t unterstand, maybe you could give me a short advice.

When the first pending order hits, e.g. with 100 Pips SL, where I have to set the SL for the second Pending order. For example in an up trend. Do I have to place the SL at the 240 line too? Or shoult I choose 100 Pips again? Or less?

I´m not shure how to handle this.

[nanningbob]

You bring your SL up to break even. If trade 1 is up 80 pips and the new one enters you should move SL up to +40.From here on out you have a free ride. You cannot lose but you can win more. If a third trade enters you move up the SL again to break even. The I breakeven on the info page will give you that number. In the future a MPTM will do this automatically but it is being developed.

[shellsnail]

You bring your SL up to break even. If trade 1 is up 80 pips and the new one enters you should move SL up to +40.From here on out you have a free ride. You cannot lose but you can win more. If a third trade enters you move up the SL again to break even. The I breakeven on the info page will give you that number. In the future a MPTM will do this automatically but it is being developed.

So basically we are scaling in aggressively when the market is moving in our favour - I like that.

it's very counter intuitive to most traders but it's absolutely the right thing to do, however, I do have some doubts about shifting SL to break even.

As you know most trades do a 36-50% retrace typically before they take off after the initial burst (especially if they run into a support/resistance area, which is likely where we are placing our orders at).

If you look at the AUD/USD chart attached, there seems to be a lot of levels where you can place trades at but putting them to break even will kill the initial trade because there was a retrace back to the original level.

Maybe the picture doesn't show the best example, but I'm sure you will agree with me that price often retraces 50% or even back to the previous pivot level when they are close together before continuing down, so how do we deal with these cases if we set SL to breakeven, it'll simply kill the original trade profit.

To resolve this issue:

why not simply shift SL to previous trade swing high/low once second trade is entered, and enter the half number of lots that you will usually enter - so now you take on approximately the same amount of risk as before (unless you are very close to the 240MA). and then upon a retrace (candle close red below the entry level for longs) you can place another half of the position (as a stop buy order) on at the level, rinse and repeat for each level and shifting stops up each time you enter a new position - and closing the trade once AO changes colour.

What do you think, this way you can safely pyramid down as well as long as AO stays the colour that you want - operating only on candle closes on 4H chart - and truly achieves the effect of cutting your losers short and letting winners run as much as possible (by giving it space to breathe)

Thanks once again for this brilliant set of tools.

[spotdespot]

FWIW, I have a pending set at 1.10037, the wmp. SL will be the white line - 10.4 mptm will take care of that.

I am already planning some software to help with order sending. Here is what I am thinking. The ea is a manual trading aid and when dragged onto the chart should:

• determine the direction to trade.
• set the pending at the next point of s/r.
• calculate the stop loss.
• calculate the take profit on the basis of user settings - WR1, WR2, x pips etc

Subsequent trade management needs to be down to mptm, so some work to be done there.

Any ideas to add, guys?

Steve,

One idea for you but it may be over complicating things. Say you have a decent setup for a long trade, price has dipped below the mid-pivot between the weekly pivot and WPR1 (WMPR1?) so you drop the EA on the chart and it sets the pending trades etc as above. Then price carries on South past the Weekly Pivot. It would be great if the EA could (optionally?) add another pending trade at the Weekly Pivot once price had moved x pips past it. Obviously we can't add it immediately as it would nearly always get triggered straight away?

Maybe too complicated? Perhaps better to just drop the EA on again if another S/R line is crossed?

Cheers,
Dave.

[shellsnail]

Another suggestion to overcome the limitation of the AO.

Look at the chart below of EURJPY.

notice how the trend took a 'moment of rest' after breaking weekly mid R1, and then AO turned red.

The best one can do here is to watch the candles, if you see a candle close ABOVE the previous swing HIGH, perhaps it's best to reenter into the trade.

Also, following on my concept of pyramiding the previous post, you can keep adding at each level it blows past (adding half of your %risk position on initial break, and another half upon retrace and second break) and shifting stops up to the last swing low (you can use fractal indicator if it's unclear)...

Just a suggestion, what do you guys think?

Ofcourse this means you have to check the charts once every 4 hours (best if you are in GMT+0 London time zone) because at least most of the moves happen when you are awake.

[shellsnail]

What I described in the two earlier posts:

in an example as shown below

GBPNZD this week

Stops are shifted as shown by the red line.

Just to clarify these trades are not what the original rules suggest. I am just offering some suggestion to overcome some of the issues that shifting stops to breakeven too early present to the system.

[aristid]

Hello all again,
have been experimenting with the system,
I think I have found an issue.

The exposure lot sizes given are calculated from the distance of current price to the 240MA.
if current price is far from the next (entry) pivot these numbers would not be of much help.
I feel it would be better if the lot sizes are calculated from the distance of the next entry pivot (the one above price in an UT) to the 240MA.

cheers.

[fire580]

The Script "Trade Analyzer" what is meant by trades under your account balance?

Thanks.
Fire580

[ross]

First: thank you Bob for this new system, and all the work you put into sharing it!

I attach some scripts to make it easier to put pending orders, and modify the stop losses take profits. These are drag'n'drop kind of scripts, that means you should drag the script onto the chart to the price level you want, and release the mouse button there.

If you drag the buy pending script above the current price it will set a buy stop order, if you drag it below the price it will open a buy limit order (opposite for the sell script).

The dragdrop_closeall script only close the orders of the chart it's dragged on.

The dragdrop_modify_TP and SL scripts will modify the stops and take profits of all orders of that pair to the level the script dragged on (easier to set the breakeven level on multiple open orders).

Please try these scripts first on a demo, if you plan to use it on a live account.

Thanks for sharing - What is the _MACOSX folder for?