123 Pattern EA @ Forex Factory

optojay · #1 Dec 5, 2009 6:47pm

Please note this EA's basic logic has been stolen and sold without permission using the name USDBOT.

I advise that you obtain a refund immediately from Clickbank if you purchased USDBOT. The original EA has been and always will be freely available here.
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Original Post:
Welcome! I have seen numerous threads here regarding the classic “123” or “ABC” setup. Well, I would like to introduce you to an EA that actually follows the 123 setup with good accuracy. I call it the Opto123 EA. Major credit goes to Ronald Raygun who worked hard to code the logic of the ZigZag indicator. I must also give mention to MatrixeBiz for his work on the multiple TP’s. Thanks to you both!

I have posted 3 pdf articles for those who want to learn what the setup is or need a memory refresher. Please take the time to read them so as not to fill this thread with newbie questions.

The 123 setup is most reliable on the daily timeframe and the MT4 ZigZag indicator appears to work best when set to (2,1,1). I have posted my set file in the zip. This set file won’t work on all pairs – try it on EU and UJ to start. The EA is set up for a 4 digit broker, so add an extra zero for 5 digit brokers (ie. 250 = 25 pips).

Enjoy!

_

optojay · #2 Dec 5, 2009 6:48pm

Here is an explanation of some of the settings for Opto123:

Pipbuffer – adjust entry point (point 2) by a set number of pips. As you read in the articles I posted above, the EA enters a trade when price goes past point 2. This setting adjusts the entry relative to point 2. A positive number means that price will have to surpass point 2 and enter later than normal. A negative number means that the trade will be entered before price reaches point 2. Remember to enter an extra zero for 5 digit brokers.

Use_Partial_Close – setting true will activate closing part of a trade using settings below

ClosefromInitialLotSize – setting true will close a percentage of the initial lot size, rather than a percentage of remaining lot size

PipTarget1 – when profit (in pips) reaches this amount, the specified percentage of lots will be closed (CloseLotsPercentage_1) and you may move the stop loss as well(moveSL_1).

You may do this up to 4 times – any remaining lots open will follow the hard TP.

Example:
I use a 5 digit broker. My take profit is set at 4000 and 1000 trading 1 lot. I activate partial close to true. My first pip target is set at 20 pips (enter 200 in EA), so the EA will close 25 percent of the trade (.25 lots) and move the stop loss to –50 pips (enter –500 in EA). The second pip target is set at 40 pips and will close another 25 percent of the initial 1 lot trade if ClosefromInitialLotSize is set to true.

The third target is 100 pips and close another 20 percent. The fourth target is 200 pips and close another 20 percent. Since only 90 percent of the initial trade was closed, the last 10 percent (.1 lots in this case) will follow the hard initial TP (which was 400 pips).

I hope this makes sense! :P

optojay · #3 Dec 5, 2009 6:50pm

I would like to further develop certain additions to the EA to make it better – especially when to exit a trade. Perhaps there is a programmer willing to put more time into this so that we can test it.

1. As you read in the articles above, one suggested method of taking profit is to add the distance from “point 1 and 2” to point 3.
So, if point 1 = 1.5000 and point 2 = 1.5200 and point 3 = 1.5150, when the trend continues back to 1.5200 again we would enter at 1.5200 and TP would be 1.5300. (200 pips added to point 3 of 1.5100). Note this is the same as a Fibonacci expansion where TP is 100% level.

2. Another TP method is to add the distance from “point 2 and 3” to point 2.
So, if point 1 = 1.5000 and point 2 = 1.5200 and point 3 = 1.5150, when the trend continues back past point 2 again, we would enter at 1.5200 and TP would be 1.5250 (50 pips added to point 2 of 1.5100).

3. May introduce other filters/adjustments – such as analyzing the size of the pullback/retracement (point 2-3 distance) and compare it to the initial swing (point 1-2 distance). If a certain ratio is met, then take the trade.

4. May add a martingale muliplier.

5. Sliding SL- trendline drawn from point 1 to point 3 and the stop loss moves along this trendline as subsequent candles are drawn.

Mandl2007 · #4 Dec 6, 2009 1:19pm

Do you have any complete description/manual for your EA ?

wanman · #5 Dec 7, 2009 11:48am

ok, i'll backctest..is it work both for demo & live?tq.

DubaiTrader · #6 Dec 7, 2009 12:16pm

I've been interested in the 123 setup for a while. I'll enjoy reading the PDFs, good to see some progress with this method.

Many thanks.

optojay · #7 Dec 8, 2009 5:56pm

Quote:

Originally Posted by DubaiTrader

I've been interested in the 123 setup for a while. I'll enjoy reading the PDFs, good to see some progress with this method.

Many thanks.

Yes, there seems to be several strategies using the 123 strategy - such as "The System II - With Irony" found here: http://www.forexfactory.com/showthread.php?t=80290

And I'm sure others will find ways to implement this setup in their trading strategies and be more profitable!

optojay · #8 Dec 8, 2009 6:00pm

Quote:

Originally Posted by Mandl2007

Do you have any complete description/manual for your EA ?

Hi Mandl,

Unfortunately I don't have a manual prepared. I posted the pdf's in post #1 for you to learn the logic of the EA/123setup. Then in post #2 I added some specifics on some of the user defined parametersin the EA. The other parameters should be self-explanatory (take profit, stop loss, trailing stop, move stop, etc)...

If I have time, I may put something more formal together. Try using my set file if you are having trouble setting up the EA.

The trailing stop works well too to capture the longer trends.

dazzdude · #9 Dec 9, 2009 8:34am

An alternate 1-2-3 entry

optojay · #10 Dec 10, 2009 1:57am

Quote:

Originally Posted by dazzdude

An alternate 1-2-3 entry

Interesting, I'll check it out!

reachjj · #11 Dec 12, 2009 5:44am

Quote:

Originally Posted by optojay

Welcome! I have seen numerous threads here regarding the classic “123” or “ABC” setup. Many people have tried to make an EA that doesn’t repaint.

Well, I would like to introduce you to an EA that actually follows the 123 setup with good accuracy. I call it the Opto123 EA. Major credit goes to Ronald Raygun who worked hard to code the logic of the ZigZag indicator. I must also give mention to MatrixeBiz for his work on the multiple TP’s. Thanks to you both!

I have posted 3 pdf articles for those who want to learn what...

Can you please prepare the set file for 5 digit broker. Finding it difficult to set.

Thanks

WadeChavez · #12 Dec 13, 2009 6:35pm

Can you put the source up ? The mq4 file..

fxtrader08 · #13 Dec 13, 2009 8:11pm

Quote:

Originally Posted by reachjj

Can you please prepare the set file for 5 digit broker. Finding it difficult to set.

Thanks

Hi,

I had the same issue as well.

fxtrader08

optojay · #14 Dec 14, 2009 1:15pm

Quote:

Originally Posted by fxtrader08

Hi,

I had the same issue as well.

fxtrader08

I will post a new set file for you when I get back home - but really you just add an extra zero to any price inputs. So, instead of 5 you enter 50, for example.

optojay · #15 Dec 18, 2009 10:12pm

Quote:

Originally Posted by optojay

I will post a new set file for you when I get back home - but really you just add an extra zero to any price inputs. So, instead of 5 you enter 50, for example.

Just checked the set file and it is already set up for a 5 digit broker. So, just load in the set file and everything should be good to go! Go ahead and forward or backtest!