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EA idea for trading spikes
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Author:  ThomasM [ Mon Sep 01, 2014 6:13 pm ]
Post subject:  EA idea for trading spikes
Hello,

i'm quite new in this forum and hope i got the right place to discuss my trading idea.

I got this idea by watching GBPCAD on friday. The last 4 fridays i saw that this pair had done a massive spike (i guess when a lot of traders closing there open positions). So my idea is to set every minute a pending order around 10 pips above/below the last 1M candle with a small sl and tp (this order must be only valid for 1 minute).

The idea (please discuss this also with me) is to got the order filled at the price and participate an this massive spike (last friday in 2 minutes around 40pips down). Calculating with the initial 10 pips and 5 pips trailing sl there are 25 pips in 2 minutes to gain. With maybe 2% and 5 pips intial sl there are 10% gain possible.

Would it possible to code such a kind of ea? How can it be backtested?
Author:  SteveHopwood [ Mon Sep 01, 2014 10:57 pm ]
Post subject:  EA idea for trading spikes
ThomasM » Mon Sep 01, 2014 6:13 pm wrote:Hello,

i'm quite new in this forum and hope i got the right place to discuss my trading idea.

I got this idea by watching GBPCAD on friday. The last 4 fridays i saw that this pair had done a massive spike (i guess when a lot of traders closing there open positions). So my idea is to set every minute a pending order around 10 pips above/below the last 1M candle with a small sl and tp (this order must be only valid for 1 minute).

The idea (please discuss this also with me) is to got the order filled at the price and participate an this massive spike (last friday in 2 minutes around 40pips down). Calculating with the initial 10 pips and 5 pips trailing sl there are 25 pips in 2 minutes to gain. With maybe 2% and 5 pips intial sl there are 10% gain possible.

Would it possible to code such a kind of ea?
Yes it is, but the decent coders here have been around long enough to avoid spending time writing EA's so that unknown members can test out their latest whim without any actual effort on their part. For sure, I know I have. There are members who have contributed hugely over an extended period of time, and whose views command instant attention. To be honest, and not trying to be unkind I promise, you are not one of them. Come back to us with a decent proposal backed up by a few months of solid results and someone might take some notice.
How can it be backtested?
What an asinine question. Please stop asking them of people you are trying to get to do something for you. Do you really not know the answer to this question?

Mind, only an idiot even begins to imagine in his/her/its wildest dreams that backtesting in Crapergy Tester is of any benefit for anything other than code testing. You will quickly come to recognise that discussion about backtesting is as welcome in this forum as is a piece of rotting fish in a slice of Gateau. Best to avoid it is my advice to you.

Actually, more of an instruction than a piece of advice.

:xm:
Author:  Jemook [ Tue Sep 02, 2014 1:02 am ]
Post subject:  EA idea for trading spikes
Thomas FYI that EA would only work on a Market Maker broker that fills at whatever price you offer (unless they use fill delay plugins to mess with client trades).

When a news announcement comes out and the market gaps for a split second afterwards (as a reaction to the high impact news) you will be filled at the next available price offered by the LP's on a true ECN network.

Getting good fills with stops and limit orders over news on a true ECN network is a hit and miss affair. Trading using stop / limit order during news is not a good idea at any true ECN broker. Only the LP can take your trade and if the market moves too quickly you’ll get filled at the next best price no matter what it is.

On limit orders such as buy stops, sell stops, take profits, stop losses etc the order will be filled at whatever price is being offered by our LPs. This could mean severe slippage on high impact data announcements where price gaps through a limit order and the next available price is x pips away.

The issue we find with news traders is they trade on broker X on the B-book (market maker) stream for a while where they get perfect fills due to the artificial pricing. Once the trader starts making money they are moved to the A-book stream which is real pricing and then they see slippage etc.

Personally, I haven't seen it work and I've seen a lot of people try across multiple brokers.

Cheers,
Jeremy
Author:  rocketman99 [ Tue Sep 02, 2014 3:27 am ]
Post subject:  EA idea for trading spikes
ThomasM » Mon Sep 01, 2014 7:13 pm wrote:Hello,

i'm quite new in this forum and hope i got the right place to discuss my trading idea.

I got this idea by watching GBPCAD on friday. The last 4 fridays i saw that this pair had done a massive spike (i guess when a lot of traders closing there open positions). So my idea is to set every minute a pending order around 10 pips above/below the last 1M candle with a small sl and tp (this order must be only valid for 1 minute).

The idea (please discuss this also with me) is to got the order filled at the price and participate an this massive spike (last friday in 2 minutes around 40pips down). Calculating with the initial 10 pips and 5 pips trailing sl there are 25 pips in 2 minutes to gain. With maybe 2% and 5 pips intial sl there are 10% gain possible.

Would it possible to code such a kind of ea? How can it be backtested?
Canada generally releases news on Fridays, thus the spikes you see. My number one rule for retail traders like you and me - do not try to trade news. Jeremy has outlined the technical reasons why above.
Author:  ThomasM [ Tue Sep 02, 2014 5:10 am ]
Post subject:  EA idea for trading spikes
The question about the possibility of backtesting this idea is silly?

Hmm, it is more a question of the quality of the tickdata u use for it not of the technical possibility of backtesting.

The answer from jemook is enough for me. You don't get filled with a good price from your broker, so it's nearly impossible to trade this szenario.

@Steve: You can close or delete this thread. But i must say that i'm a little disappointed from your answer and how you think about new members. I thought the idea in this forum is to discuss ideas, systems etc. If i could program this on my own i wouldn't ask for help.
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