Automatic Loss Recovery System (ALR) - read this first

[kotsh]

Ok folks here is a toy to play with:

Both Madpipa and Spider have been working hard to make an EA with ALR. Spider’s version will be a shell so you can easily add other strategies to test. Madpipa’s is out first because I am still waiting to hear back from Spider before posting his:

DO NOT USE THIS ON A LIVE ACCOUNT

Right now we are all still testing to see if ALR is really viable. I have run some tests but will be very busy over the next few days so please back test it, play with it, stress it and see what works and doesn’t. Experiment on different pairs, times, tp/alr settings, number of turns etc. Try it on high volatility pairs and lower ones and share results. Let us know if you find any bugs. All I ask is you show respect for the people who put a lot of time into this so we could test this out.

This is GREAT! Thanks, Dewey, for sharing with us!

I will play around with it and update the thread of anything I find.

Cheers

[Dewey McG]

I'm thinking I'll run it on a few pairs with horrible swaps as part of a stress test. I know that's not particular to ALR but it would be something to consider if using this as part of a medium to long term system. It would amplify the swaps I think, because swaps are not paid on our favour it. The negative swap is always a bigger number than the positive swap.
This is less an ALR thing than a trading system thing, right?

No, this is an ALR thing. The trading system on this EA is a simple trend following system. It might turn out that another type of trading system works better but this will give everyone a chance to start playing with it and giving feedback. It is just a start.

[SpiderX]

Hi,


Have uploaded the EA here:
http://www.stevehopwoodforex.com/phpBB3 ... 639#p95638
Please help to test for bugs...at this point in Empty4 backtester in tickmode ...only for sanity check purposes.

Cheers

[Eamonn]

Dewey, Spiderx, Madpipa,


Many thanks,will give this a whirl to day and report back

cheers

Eamonn.

[madpipa]

A quick explanation of some of the Inputs for the EA Dewey posted here:
http://www.stevehopwoodforex.com/phpBB3 ... 630#p95630[/url]"]

MinProfit = 0
This will always try to finish with > $0 profit for each group of trades. The profit includes total trade outcome, commissions & swaps. If you set this = 0 it MAY trade well past the TakeProfit level set. This is because at the TakeProfit level the trade may still be negative. In backtesting I have seen one set of trades close at about 190 pips instead of the 150 pips set. It may be best to initially set MinProfit = -1000. This will ensure that trades will close at 150 pips.

StopLoss = 50
This is where you would normally place SL. It will execute the ALR part of the EA.

TakeProfit = 150
Usual TP level. This should be about 2.5 - 4 times the SL. Play with the ratio & see what happens.

MaxOrders = 10
When the number of orders reaches 10 it will stop placing more orders.

ForceCloseAtMaxOrders = FALSE
If FALSE then it will allow the MaxOrders to be placed then wait till either the upper or lower TP is reached. If TRUE it will place the last MaxOrder then immediately close all orders.

TakeSmallProfits = TRUE
If TRUE it will close the trade for a smaller profit if conditions are met. Advantage - can take a small profit before ALR starts. Disadvantage - can take a small profit before price goes to normal TP for a full win. Try both options over the same dataset & compare outcomes.

I don't think this EA will work on a mini account (not tested) because it relies on slowly increasing the lot size to always have a net positive position going in one direction or the other. If the 1st lot size = 0.10 then the next trade will be 0.14. This isn't possible on mini accounts.

[madpipa]

I have run a test over a short dataset - EURNZD from 26/09/13 - 16/10/13.

EURNZD example.png

The reason I isolated this small dataset is that it has 2 consecutive sets of trades that both reach the MaxOrders = 10. The screenshot shows the 2 possibilities if trades are left to reach either the upper or lower TakeProfit level. If you are lucky it reaches about breakeven. If unlucky it loses $1,200.
Big difference.

[Dewey McG]

One of the decisions each trade has to make is the trade off when they add extra turns. As you add more turns, the chances become greater that you will never have a loss, but the size of the loss becomes larger. You can keep it down, but your lot sizes go down so your wins are smaller.

In testing these EA's on different pairs, it is good to look at the ATR to determine ideal settings. A more volatile pair might be fine using 50/150. A pair like the EURCHF would be better with 35/105 etc.

Have fun testing everyone. I have a crazy schedule for the next few days so won't be able to do as much. Please share your findings.

Special thanks to Spider and Madpipa for their hard work.

[Wapen]

Ok folks here is a toy to play with:

Both Madpipa and Spider have been working hard to make an EA with ALR. Spider’s version will be a shell so you can easily add other strategies to test. Madpipa’s is out first because I am still waiting to hear back from Spider before posting his:

DO NOT USE THIS ON A LIVE ACCOUNT

Right now we are all still testing to see if ALR is really viable. I have run some tests but will be very busy over the next few days so please back test it, play with it, stress it and see what works and doesn’t. Experiment on different pairs, times, tp/alr settings, number of turns etc. Try it on high volatility pairs and lower ones and share results. Let us know if you find any bugs. All I ask is you show respect for the people who put a lot of time into this so we could test this out.

Hi Dewey, This EA is it only a ALR recovery trader? One uses ones own strategy to place trades?

Wapen

[Dewey McG]

Hi Dewey, This EA is it only a ALR recovery trader? One uses ones own strategy to place trades?

Wapen

No--this EA has a simple trend trading strategy so we have something to test it with. Because of the very nature of ALR, it will take a lot of data, hence a lot of backtesting, to see how viable it will be for different types of strategies

[wealthmaster]

Attached is the exact copy of Dustin’s ALR EA(spreads and swaps are taken into consideration). It is used with manual trading just like explained in Dustin’s Videos

I have been working with my programmer for 2 weeks now, Once in a while I find some bug in an EA and I ask my programmer to update it, But I believe this is now BUG free, But still if you find any BUG,let me know.

Working of this EA is self-explanatory, but still I will try to explain.

Open a trade manually without setting up stoploss you can set your takeprofit and then attach the EA.


Inputs

Ticket: Leave it as -1 and it will detect itself (Unless you are placing a 2nd trade in a single currency pair) After placing a 2nd trade in a single pair open new chart and attach EA with it’s ticket number with different magic number so that EA can differentiate between those series of trades)

*2nd trade= Let say you buy a pair and it hit stoploss and in ALR mode( so It is opening series of trades to recover from a loss) meanwhile you get another entry signal on the same currency pair from your manual trading system, You can take this new signal and open new chart, attach EA with it’s trade ticket number and with different Magic number so EA can differentiate between the 1st trade and its series of trades and 2nd trade and it’s series of trades.

XYZ: Is the amount in USD that you want to make in worst case scenario i.e. after going into ALR mode.

Stoploss: put the stoploss in pips i.e, ALR zone

Takeprofit : Put the take profit in pips ( usually 3 times the stoploss ) This Take profit only becomes active when our stoploss is hit ( i.e when it goes into ALR mode)

Max Order : maximum number of orders

Magic number: Leave it as it is unless you are placing a 2nd trade.

Enjoy Guys /Gals with my Paid EA