RISK WARNING
All Expert Advisors (Robots), Indicators, Trading Systems posted by me
are Trading Tools developed for Experimental purposes.
Using any of these tools on a real account carries a high degree of risk.
I will not be held responsible for any losses incurred by any one uses these tools.
Engulfer Trading System (ETS) uses engulfing as an entry method where trader can select the number (n) of engulfed candles (e.g. 1, 2, 3 ... etc).
The system generates both trend reversal signals and trend continuation signals after pull backs.
It uses high RR (Reward to Risk) ratio, 3 or higher.
The engulfing method implemented here is as follows:
- The system acts on the CURRENT candle to benefit from the break out momentum
- Bullish Engulfer (LONG Signal --> Buy):
* The current candle price should exceed the Highs of all (n) previous candles
* The immediate previous candle should be bearish
* The Low of the current candle should be less or equal than the close of all (n) previous candles
- Bearish Engulfer (SHORT Signal --> Sell):* The current candle price should exceed the Lows of all (n) previous candles
* The immediate previous candle should be bullish
* The High of the current candle should be greater or equal than the close of all (n) previous candles
// Entry & Exit :--------------------------------------------
- Buy on Bullish Engulfer with stop loss at previous candle low, profit target = RR x Stop Loss
- Sell on Bearish Engulfer, with stop loss at previous candle high, profit target = RR x Stop Loss
// Position Sizing :-----------------------------------------
- Position size can be fixed or automatically calculated by the EA based on Stop Loss and Risk percentage of account free margin, for each trade.
// Trade Timing :---------------------------------------------
- EA has a trading time filter (start hour to end hour Inclusive)
- Time filter is used only for opening trades. While closing is based on SL or TP which can happen any time.
- Time used is Broker Time
- I found better results during European Session GMT 6 to GMT 16, so for example my broker time is GMT + 3, my timing filter will be 9 to 19 ... and so on.
// Constraints :---------------------------------------------
- Only one position at a time per pair/tf
- Only one trade can be taken on the same candle
Sample Chart : EUR/USD H1 with (n) candles set to 3 and RR set to 2
Tester report : EUR/USD H1 - 2015 with (n) candles set to 2 and RR set to 5
Enhancement Requests ;
- kohones : an option to close all positions at profit target "x" (Money / Equity Percentage)
- abokwaik : Min SL, Max SL, TS, Min Engulfer Range
- MathTrader7 : Break Even option., No Trades on same bar where last trade was closed.
- wattaman : entry on retrace %