PPoS 4H trading

Post by **Zennor** » Fri Mar 20, 2015 1:33 am

This is a look at using the rather fabulous PPoS EA in a slightly different manner than it was originally intended.
To that end DO NOT bother Steve or anyone else for that matter if you cannot get the EA to do something that it was never intended to do. We will not be asking for any alterations to the EA and will work with what we are given because what we have is more than enough to achieve our aim.

The reason I am posting this is because having looked at the EA and having spent many many hours with many different configurations and time settings I have over the last few weeks been having some really good results using the methodology that I am about to lay out for you.

This thread is not for discussing the original system or for making any comparisons, this is purely a testing system and trades quite differently to the original.

Now whilst I have stated that no comparisons are to be made to the original I shall be pointing out a few different settings and explaining why they are different from the original system which will become clear once I explain the system.

During testing the only thing that has changed from the original PPoS 4H system is the lot sizes and the basket percentages. Throughout the testing period the gains have been quite significant, just over 30% gains in just under three weeks with the biggest drawdown seen being just over 7%.

Welcome to the PPoS 4H system.
I strongly urge you to use a demo account if you are going to try this system or just follow my demo account which I set up yesterday to start afresh for those wishing just to monitor the system. (Link at the bottom)

For this system you will need an EA which can basket trade your account, I use a freely available one which does exactly what I need it to do, just google Equity Sentry. Then the PPoS EA, I am using version 1d
I use a 3% basket Take Profit and a 30% emergency Stop Loss.
For this system we will be using the W1, D1 and H4 settings.
I have been using no stop loss or take profit for the multitrades.
I have 6 and not 5 multitrades set up.
I use 0.01 lots per thousand for the multitrades, so if your account is £5,000 then the multitrades will be set at 0.05.

At this point I should explain my thinking behind this. The original system uses the multitrades to get in and out quickly with a small take profit and a large emergency stop loss which works superbly well, however we will be using the multitrades to counter the main and the odd multitrades which go against us and let me assure you that they will.

The beauty of this and I have seen it happen time and again when one or more currency pairs trigger and turn against us if we can just get just one currency pair to go in our favour with the multitude of open multitrades going in our favour the negative trades very quickly get negated and the 3% quickly gets hit. Of course these trades could turn against us and the 30% emergency stop loss could get hit but given that this is a price action trend trading system we'd have to be pretty unlucky for ALL the trades to trigger and trend against us. Will it happen, well I'm pretty sure that it will but how often and would the winning trades be enough to take care of them only time will tell.

For example this week the EUR rose after a prolonged drop against nearly all currency pairs, the USD fell after a prolonged rise. A few other pairs like the AUD and CAD also decided not to play ball and I had a fair few losing trades but only a handful of multitrades were triggered and going against me. Then the GBP decided to play ball and I had a ton of open multitrades going in my direction which quickly negated the 7% fall in account and hit the 3% on Wednesday, then again early Thursday morning the USD rose nicely and banked another 3%, previous to that before I reduced the basket Take Profit to 3% I had 4 x 5% take profits hit during 8 trading days.

I reduced the basket Take profit for two reasons, one to be in and out more quickly and secondly to negate all losing trades as quickly as possible and in so doing did a kind of system reset, so far it is working well.

Moving on, for the main trades you can use fixed lots again 0.01 per £1,000 and again no stop loss or take profit, I do however have my demo set up to risk 1% of the bank at 3 x the ADR of a 20 period ADR and when the trade triggers I simply move the stop loss to a place where only a black swan event will hit it. If you delete it the EA will put it back so just move it, you should have plenty of time given that it is placed at 3 times the ADR..

The EA trades 24 hours a day so no times in the Trading hours column of the EA

Now the original system closes all pending trades on Friday and were we to be trading in the same manner we would have to manually close all pending trades at the end of the day if the D1 no longer matched the W1 candle.. But we do not. We leave all pending trades open at the end of the day because firstly the day candle on it's own has very little reflection on Trend, (just look at the GBP this week, had I closed all the pending trades after just one day up I'd have struggled to hit the 3%)secondly we are primarily concerned with trading with the Weekly trend so we only close pending trades if the W1 candle changes after Friday. So I leave the time to close trades blank as I will close those manually on Monday if the Weekly candle is against the pending trades, any open trades are left alone because the trades going in our direction will take care of them if needs be..

For now the main pending is set at 10 pips, given the wide variations on ADR's this will change at some point but for now it will suffice.

I have attached two set files. One is using the 3 x ADR 1% risk where you will have to move the stop loss once triggered. PPoS 4H ADR
The other is a fixed lot size of 0.01 for main and multitrades with no stop loss or take profits. PPoS 4H Fixed

Here is the link to the newly created demo account for this testing, ignore the first few multitrade lot sizes at 0.03, they triggered before I could correct them but no great shakes and the new multitrades will be set at 0.05 lots given the demo is a £5000 account.

http://www.myfxbook.com/members/Zennor01/pipcrusher-4h-gp/1192649

Finally I would like to express my heart felt gratitude to both Steve for his tireless work here and to PipCruiser for his brilliant ideas and sharing attitude.

Post by **pipcruiser** » Fri Mar 20, 2015 12:55 pm

Hi Z,

Thanks for your (long) post

I am happy you are thinking out of the box and try this out on 4H / basket mode, as this has been on my mind for long but simply haven't had time to experiment further and I am also quite happy with the original "slow" strategy.

I will be following this one closely.

Take care

PC

Post by **Zennor** » Fri Mar 20, 2015 2:11 pm

Hi PC,

Like your good self I am also very happy with the original slow system because it is very reliable and a proven system. It is my main trading system by far.

However given the excellent EA that Steve and you gave to us it would have been rude not to explore any further potential it may have to offer us.

This is still very much an unproven experimental system which I think is based upon a sound idea which may or may not prove to be fruitful.

Early indications and that is all that they are is that this has potential, only forward testing and time will tell.

Thanks

Zennor

Post by **SteveHopwood** » Fri Mar 20, 2015 10:43 pm

Great thread Zennor. It has won you your spurs here - note the change of colour of your username.

Your thread is exactly why PC both generously paid me to develop the original PP and make it available to our wider membership - maybe there are uses for PP that PC had not thought of.

I will add this to my wrup on Sunday night.

Post by **Zennor** » Mon Mar 23, 2015 9:21 am

SteveHopwood » Fri Mar 20, 2015 11:43 pm wrote:Great thread Zennor. It has won you your spurs here - note the change of colour of your username.

Your thread is exactly why PC both generously paid me to develop the original PP and make it available to our wider membership - maybe there are uses for PP that PC had not thought of.

I will add this to my wrup on Sunday night.

Thanks very much Steve.

I was really quite happy with the first basket of trades as they had a nice bit of draw down but not too much and then demonstrated the power of the open mini trades which when a currency pair decided to go trending it quickly negated the draw down and hit our profit target and in so doing did a system reset to start all over again.

This is exactly the pattern that I have been observing over the past weeks.

Now I am expecting a pretty difficult week with the system due to the fact that the system has the EUR long and the USD short which is fine for the technical s but is very much against the fundamentals.

Should be an interesting week...

Wobstix · Post by **Wobstix** » Mon Mar 23, 2015 4:54 pm

Thank you Zennor for sharing.

I have been trading the Original PP on H4 the past 2 weeks with some success but nothing like what you have claimed. I changed over to your system before market open.

Upon getting home from work today, I was happy to see a 3% increase in my demo account with no open trades. My set up is the same as yours. I am running a fixed 0.02 Lots on a $2000 account. Looking positive.

Well done.

Post by **Zennor** » Mon Mar 23, 2015 5:06 pm

Wobstix » Mon Mar 23, 2015 5:54 pm wrote:Thank you Zennor for sharing.

I have been trading the Original PP on H4 the past 2 weeks with some success but nothing like what you have claimed. I changed over to your system before market open.

Upon getting home from work today, I was happy to see a 3% increase in my demo account with no open trades. My set up is the same as yours. I am running a fixed 0.02 Lots on a $2000 account. Looking positive.

Well done.

You are most welcome Wobstix, yes I tried the original system with the 4H as well and ran it besides this system and found that basket trading suited this system but I must emphasise that this is still very much an experimental system which is being forward tested..

So keep it on the demo for a fair while.

:

Wobstix you mentioned that you had no open trades, if you are using equity sentry and wish for the EA to continue trading after it hits the 3% then make sure that you have DisableAllExpertAdivers set to False.

Post by **szfxtrader** » Mon Mar 23, 2015 5:27 pm

Thanks for sharing it, if possible, could you please also share the EA on your first post? Thanks in advance!

Wobstix · Post by **Wobstix** » Mon Mar 23, 2015 5:39 pm

Here it is.

equity-sentry.zip

Zennor I have it set to false. I do have pendings, so, It's probably just getting ready for the next "run" (hopefully)

Post by **milanese** » Mon Mar 23, 2015 6:06 pm

You can to take a look to ---click----> http://www.stevehopwoodforex.com/phpBB3 ... =21&t=4081
this EA has equity TP, equity SL and equity trail functions, can decativate EA trading after basket-close and too recativate after a user determinated time the EA trading..

Cheers

Tommaso