Hi Steve
Thanks for the reply and advice! trying to think like a coder, may prove a little difficult for me.
Anyone who can look at this: if(xi == || ++,, = holycrap!!)
and knows that it means something, has a part of the brain that I missed out on!
The Attached Chart in post one.
On my first post chart there are some residual indicators that I should have removed, they were from days gone by and make the chart look sexy, but don't really influence the trading, they are more of PITA actually. My apologies for that!
But I will explain them at the bottom and include the mq4 files, maybe someone can see a benefit to using them!
Frame4b.JPG
THE STRATEGY
Any 5m chart but Yen crosses work well here in Australia...because its the morning!!
1. THE MANUAL PART
* With your Mark 1 eyeball, find some consolidation of price (or a swing high and low) between the markets!! Between US and Japan and Japan and London (the green circles).
I was told once that this is when the sharks are out manipulating prices to hit stops, don't know how true it is, but anyway there is usually a swing high and low formed on some charts that acts as a reference point for our trading.
* Manually place a horizontal line (or trendline) at the top and bottom of price action (yellow lines on the attached chart)
2. The Automated part (hopefully)
When the EA is turned on, these two lines become two pending orders of the same lot size (ie. 0.01) One pending order is to go long at the top line and one to go short at the bottom line. (+spreads)
Now we wait and see which way price will move.
Trade1. (at 2. on chart) Trade1 entered short because price broke down, lot size 0.01 (SL 60 TP 30)
What might happen.
Take Profit hit - Close trade , Go home, buy the wife some flowers!
- The pending long trade is automatically cancelled (somehow) OCO if TP hit?
or
Price moves in against us and
- if the channel (between the two lines) is smaller than SL of trade 1.
then we enter a long position at (3. on the chart) with lot size 0.03 (SL60 tp 30) and carry the loosing short trade.
- if the channel is bigger than trade1 SL, then accept the loss and move on!
- The new long trade (3.) will be bigger lot size of 0.03 as above. (or maybe have the option to start the pattern again, just a thought for different trading styles!)
Now wait.
What might Happen
Take Profit hit - Close trade, take the misses to dinner! (as what happened on the chart)
or
Price now falls again (the big blue arrow)
- Another trade is entered short if price breaks through bottom line of channel again (at 4.)
lot size 0.09 SL60 and TP 30 (now crawl under the desk and hang on)
3. THE Logic:
A Currency with a big trading range is going to move somewhere, just ride with it.
Choose a spot to jump on initially (I use the queit time between the markets)
However, Play it smart, if the 3rd trade is a looser, get off....Don't let ball size come before brain size! In saying that, maybe the EA could include several new trade sizes for those with less risk adversion.
----------
TrendBreakEA-14.mq4
I have included an EA (TrendlineBreak.mq4) that a great coder modified for me a couple of years back.(Thanks to Christina Li!!) It enters trades when price breaks or bounces of a trendline placed on the chart by the user.
it has safety features built in...a pip limit to avoid spikes, spread distance, and waits for price to move below/above the break bar before entering
You might be able to modify this one to hedge the position with bigger lot sizes, because it works great for anyone who trades trendlines!! (it doesn't work on horizontal lines) ( you have to name the upper and lower trendlines in the 'description' part of the dialogue box, not in the name part)
----------
I hope this helps, apologies in advance if not
Happy pippping
Daryl
THE INDICATORS ON THE FIRST IMAGE
The Moving average channel. BlackDog Color MA.mq4
On a 5min chart the two Moving average channel are just 150 period Exponential MA's, one on the high and the other on the low price.
They are not needed to trade but I guess they might give an extra confirmation if they are moving down and the breakout occurs in their direction. They are more of a visual thing.
The Price Action Dots and Arrows PriceAction.mq4
The black dot indicates 'reversal bars' where open and close price are at a certain % away from high or low of bar.
The Red and Green little arrows indicate 'outside bars'
once again I don't trade off these as they are leftover from another system. I should have removed them, but they are attached here if anyone wants them. Sometimes they work, sometimes they don't.
The coloured squares are just market open and close hours for japan, london and US. Once again a visual thing only. MarketHours.ex4 |
) and continues through the bottom line a short trade is entered of lot size 0.03 with the same TP30 and SL60...this employs the same strategy as the sure fire now with enlarging lot sizes...then a 0.06 if it goes up again...The losses of the other trades are carried but they are soaked up by the larger lot sizes...I have always seemed to escape with no more than the 0.06 lot size.