Hello traders,

I've been following this system for about 6 months on the babypips.com website. I believe this system is worth creating an EA or moving average PA touch and/or crossover alert/email indicator. To get every trade opportunity one must check the markets every 4 hours. A follower of this system modified the original rules that incorporates a fixed SL and TP. This trader compiled all the possible trades for 2013 and showed this system generated an average of 272 per month. Here are the original rule:

Credit goes to Harmonicphil

OVERVIEW
The 3 Little Pigs is based on 3 timeframes, Weekly, Daily and 4 Hour. The idea is to “swing” trade in the direction of all 3 timeframes, a Buy signal, as an example:
• Price is above the 55 Simple Moving Average (SMA) on the Weekly timeframe
• Price is above the 21 SMA on the Daily timeframe
• Price closes above the 34 SMA on the 4 Hour timeframe
When the above conditions are met a Long position is opened.
These are the basics - Sell is vice versa.

ENTRY
As I mentioned, there are a number of options in the manual – Here is my chosen approach:
BUY
• Price is above the 55 SMA on the Weekly timeframe and
• Price is above the 21 SMA on the Daily timeframe, I will enter
• On close of the next candle that touches and then closes above the 34 SMA on the 4 Hour timeframe
SELL
• Price is below the 55 SMA on the Weekly timeframe and
• Price is below the 21 SMA on the Daily timeframe, I will enter
• On close of the next candle that touches and then closes below the 34 SMA on the 4 Hour timeframe

STOP LOSS
My choice here may seem a little complicated but only when written down, in practice it’s really straight forward.
First, I check the 14 period Average True Range (ATR(14)) which I added to all my 4 Hour charts. I add the High and the Low values (displayed on the right) and multiply this by 25% – I place my stop above/below the 34 SMA on the 4 Hour timeframe by this number of PIPs.
I have included an example as an attachment.
This is not a real setup just a chart I decided to use to demonstrate how I calculate my Stop loss.
This is the 4 Hour timeframe and assumes price is above the 55 SMA on the Weekly timeframe and the 21 SMA on the Daily timeframe. Price has touched the 34 SMA and has closed above it. The High and the Low of the ATR(14) is 26 and 14 which gives me 40. I take 25% of this value which is 10 PIPs. To get my Stop loss I subtract this from the current 34 SMA value (8460 – 10) so my Entry here is 8482 (the candle close), plus Spread and my Stop loss is 8450.
I will then use a Trailing Stop loss behind the 34 SMA on the same basis, e.g. if the 34 SMA rises to 8475 I will then trail my Stop loss to 8465.

TARGET
Again the manual offers a number of options but I use an open target and exit only when my Trailing Stop loss is taken out.

RE-ENTRY
If I get stopped out I will re-enter according to my Entry rules.



Read more: http://forums.babypips.com/free-forex-t ... z2oOglyuHJ

Credit to four candles for his hard work on backtesting his modification.

The modified rules are that trades are executed as above except the following:

Pairs: EURUSD, GBPUSD, USDCAD, AUDUSD, EURGBP, and USDJPY

TP: 60 Pips except 75 pips for UJ
SL: 30 pips except 50 pips for UJ

Only one trade per pair and all trades are closed on fridays

Attached is his spreadsheet with all the trade details

Please let me know if it's possible to code this system into an EA. If someone can code this into an EA, it will be shared with the trading community. Thanks

rktrader714 wrote:Hello traders,

I've been following this system for about 6 months on the babypips.com website. I believe this system is worth creating an EA or moving average PA touch and/or crossover alert/email indicator. To get every trade opportunity one must check the markets every 4 hours. A follower of this system modified the original rules that incorporates a fixed SL and TP. This trader compiled all the possible trades for 2013 and showed this system generated an average of 272 per month. Here are the original rule:

Credit goes to Harmonicphil
.....
Please let me know if it's possible to code this system into an EA. If someone can code this into an EA, it will be shared with the trading community. Thanks

• Most Forex traders lose all their money.
• Using the robot posted here in trading Forex does not guarantee success.
• Trading this robot could lead to serious financial loss.
• Trading this robot without understanding its underlying trading strategies guarantees traders will lose their money.
• This is not a set-and-forget ea; there is no such thing and anyone who tries to claim there is, is either stupid or lying. This ea requires frequent manual intervention.
• At best, a trading robot is only 90% as good as the manual strategy it trades. At best. At worst, it can be much less effective. If the strategy is rubbish, so is the robot.
• To trade this robot, you have to understand:
  • How to use EA's.
  • Market trend and retracement patterns.[/mod]
    
    
    Ok here is the first version, as always please test it carefully on a demo first..
    SetBEminPip sets the min SL distance from actual price if the EA in profit is moving SL
    MinTPProfitInUSD sets the minmal win that the position must have for using the closing roule too in profit

extern string   CloseAllProfitSet1="---Set this to true to close all EA positions----";
extern string   CloseAllProfitSet2="---if Profit reaches CloseAllOfPairInProfit----";
extern bool   UseCloseAllOfPairInProfit=true;
extern string   CloseAllProfitSet3="---enter here the amount in account Currency----";
extern double CloseAllOfPairInProfit=100;