Over 7 months observing forex by tih strategy i realized we can create EA for this strategy How? I'll show the system, but need some coder's help for making EA.. Ok here we go..
System consist 3 part - Entry rules, Exit rules and Risk managment.
For entry rules I prefer using H4 -0.0045 and 0.0045 levels. Example for Buy condition
When price cross down -0.0045 EA cheking for buy stop. For this moment it wait for formation of local max on H1(or formation of fractal) after that EA put the buy stop to above of the fractal bar(spread + 1 pip)
http://img232.imageshack.us/img232/5208/analiz.gif
http://img216.imageshack.us/img216/3483/proqnoz.gif
Why buy stop not buy? Because some times, even crossing -0.0045, we buy but price continue its last trend and form convergence(divergence). Cause of that insure our trade i prefer using fractal breakout..
Sell condition
When price cross up 0.0045 EA cheking for sell stop and on H1 put the sell stop belove the fractal (spread + 1pip).
http://img4.imageshack.us/img4/5208/analiz.gif
http://img216.imageshack.us/img216/2359/proqnozk.gif
Risk Managment
I prefer not to use more than 10% of deposit for marjin.
Max drawdown 300 pips(SL)
Partial Drawdown("Price breath") 150-200 pips
Final Loss 25-30% of capital..
Exit rules
This is really problem side of most traders. But my exit rules depends on how much more we can profit from one trend.. In this picture Red lines our All trade's SL, green lines (buy stop) entry points. Buy adding orders we put SL's to one place so if move our SL, we move All order's SL.
Another instructions..
For fill my self in safety i advise to add here Breakeven... Almost 20-50 pips.
Why? Because some times price doesn't go to that way as we plan(as we plan to add another orders to one trend)
Even price got last "failed trade", profits from others would compensate that one..
Sorry for my poor english...
Happy trading for all
System consist 3 part - Entry rules, Exit rules and Risk managment.
For entry rules I prefer using H4 -0.0045 and 0.0045 levels. Example for Buy condition
When price cross down -0.0045 EA cheking for buy stop. For this moment it wait for formation of local max on H1(or formation of fractal) after that EA put the buy stop to above of the fractal bar(spread + 1 pip)
http://img232.imageshack.us/img232/5208/analiz.gif
http://img216.imageshack.us/img216/3483/proqnoz.gif
Why buy stop not buy? Because some times, even crossing -0.0045, we buy but price continue its last trend and form convergence(divergence). Cause of that insure our trade i prefer using fractal breakout..
Sell condition
When price cross up 0.0045 EA cheking for sell stop and on H1 put the sell stop belove the fractal (spread + 1pip).
http://img4.imageshack.us/img4/5208/analiz.gif
http://img216.imageshack.us/img216/2359/proqnozk.gif
Risk Managment
I prefer not to use more than 10% of deposit for marjin.
Max drawdown 300 pips(SL)
Partial Drawdown("Price breath") 150-200 pips
Final Loss 25-30% of capital..
Exit rules
This is really problem side of most traders. But my exit rules depends on how much more we can profit from one trend.. In this picture Red lines our All trade's SL, green lines (buy stop) entry points. Buy adding orders we put SL's to one place so if move our SL, we move All order's SL.
Another instructions..
For fill my self in safety i advise to add here Breakeven... Almost 20-50 pips.
Why? Because some times price doesn't go to that way as we plan(as we plan to add another orders to one trend)
Even price got last "failed trade", profits from others would compensate that one..
Sorry for my poor english...
Happy trading for all
Think like an investor, Act as a speculator. Ferid H.