does your EA calculate the S/R too?
AshFX Daily 2,650 replies
DailyHighLow (EA - MTaboneWeb) 103 replies
"The Pip Nailer" (EA - MTaboneWeb) 74 replies
GrabMyOrders (EA - MTaboneWeb) 20 replies
TossUp (EA - MTaboneWeb) 9 replies
DislikedThe two trades above were opened yesterday but closed today by the EA without hitting their targets or stop loss. Closed out shortly after the change of day.
Am I doing something wrong when implementing the EA?Ignored
DislikedDon't think so. Yes, they changed to green but this is not an exit criteria for a long.Ignored
DislikedActually it is. See the screen shot of the pdf. You can also see the portion explaining that for a second strength trade the AO doesn't have to be compliant and that it will usually change colors but in this case did not. I didn't develop the system, only the EA to trade it according to the rules. The EA did what it was supposed to do according to the rules.
This may require some tweaking for special scenarios since it's mechanical rather than manual.Ignored
DislikedI would seriously question whether the AO changing to green on a long trade is a criterion for exiting the trade.
I took a look at the screenshot as you recommended, but that only reinforces my opinion. Regarding exiting a trade, it states "So if you're long, you would exit the second half of your position when the AO eventually turns red." In this case, it turned green, which further validated the long position.
The screenshot also notes, in regard to SS trades, "when taking a long, if the AO isn't compliant, one can still take the trade; it will usually turn green within the next couple of candles." That's exactly what happened, so why would that be a basis for exiting the position?Ignored
DislikedIt changed to green on the current bar. The EA and the system is based off of completed bars. It should be clear looking at the chart that the previous bar (not the bar where the trade was closed) was even lower than the bar before that (which was the signal bar).Ignored
QuoteDislikedOn the very next bar it placed the long orders at the open of the bar and when it rolled over to today's bar it hadn't increased. The bar where the buy was initiated was lower the the bar where the trade was signaled. forexmoments has said repeatedly that he works on completed bars. It does not matter that the current bar is turning green because the previous closed bar was the signal for it to close.
QuoteDislikedLike I've said before, I did not develop the system. I only developed the EA to trade the system precisely by the rules given by forexmoments. In this particular case it could end up being unfortunate that the trades closed early. I totally agree at this very moment with you but if it had continued down or does turn around before the end of this bar and be even lower then you would be upset that the trade lost even more money hitting a stop loss possibly. As far as I'm concerned the EA did exactly what forexmoments laid down as the rules.
QuoteDislikedPeople who trade this system manually or with an EA need to ignore the current bar and look bar at the previous closed bars. That is where all the decisions are made.
DislikedIn regard to the height of the bar, I wasn't aware that was taken into account in deciding whether a trade would end. Are you saying the EA detected that and closed the trade for that reason?Ignored
DislikedThe color of the bar is determined by how it compares to the previous bar. If it's less than then it's red and if it goes higher then green. Each progressively larger/higher bar will continue to be green until the first bar that is less and then that bar will be red. In the EA I don't see Red/Green I see values higher/lower (less than / greater than).Ignored
QuoteDislikedI believe there would have to be something custom to be able to accommodate a second strength trade if the AO doesn't comply when the trade is initiated. On one hand the AO is specifically used as an exit and then dismissed for a period of time in the case of a second strength trade. The EA would have to be taught the difference and yet still know when it actually needed to use the AO as a signal to close the trade(s).
QuoteDislikedPerhaps a variable for number of bars it's excused before it uses the AO as an exit possibility? You see what I mean? Even if both trades are open and the AO changes under the right circumstances then I feel both should be closed even if the first hasn't hit the take profit. It may not hit the take profit thus leaving it to double back and hit the stop loss eventually.
QuoteDislikedIn this case an extra bar of forgiveness might have done the trick but how much slack do you give these things? It also might have been a bad thing as well. In a manual world then the system would have human intervention but the EA is purely technical only doing what it was told to do.
QuoteDislikedSuggestions?
DislikedWell, after a good night's sleep, I do have a couple of suggestions regarding how the EA might handle SS trades where the AO bar does not conform i.e. still green on a Short trade, still red on a Long trade.
I took a look at the 4 major currency pairs over the past 6 months. Over that span, I found 30 trades that would be defined as AshFX SS trades. Of those, the vast majority, 26, conformed completely (in other words, the AO bar conformed with the rest of the trade signal). In only 4 cases was there a situation similar to what was encountered on the eur/jpy trade we were discussing.
If that same percentage is somewhat similar for all the currency pairs, would it be possible for the EA to do one of these two suggestions?:
1. Ignore a trade altogether if the AO is not compliant. I realize that does not conform completely with AshFX rules, but it also prevents trying to figure out how to program the EA to exit per AshFX rules in this type of trade scenario. Of the 4 trades I found where the AO was not compliant, some were losing trades and none turned into large winners, so I'm not sure that eliminating them from the trading system would change the results much at all.
On average, this type of trade situation only came up once every 6 months per currency pair on the 4 pairs I tested, so eliminating the "non-conforming" trade would not seem to affect overall performance much at all.
2. Open the trade only when the AO is compliant with the rest of the trade signal. As the rules state, that usually happens within a couple of bars anyway.
Neither of these suggestions is perfect, since they do not match the AshFX rules exactly, but at this point, the EA exit strategy for this type of trade is not perfect either. All in all, it might prove to be a more manageable way for the EA to handle the trade and would eliminate a repeat of the EUR/JPY exit situation.Ignored
Disliked1. When I read the rules, it suggests to me that only the second half of a trade should look for a change of colour of AO. And then, for a long, the AO would turn from green to red, and vice versa for a short trade for the trade to be closed (not just a change of colour regardless). Now, I do have a problem with this in that there have been trades recently where the first part of the trade has not hit SL or TP before the AO changes colour. Ash's specification does not state what to do in these circumstances. Leaving those trades to run invariably means that they (both halves) hit SL with large losses (due to the SL being set at the prior swing high or low). As a result, I have been monitoring the system from the start of July and, for closed trades, the system is in a large loss. I think further clarification is needed for this scenario from Ash.Ignored
Disliked3. My final point is regarding trade entry. These trades entered when both the AO conflicted and the stochs were above/below their ideal. The way I read the spec these are independent trade factors. There is nothing in the spec that says the trade is valid if both these factors occur. Ash would need to confirm that the combination of the two still makes a valid trade.Ignored