DJM,
This EA provides a very good spike indicator, probably better than most. When the action hits your stop you know you've got a spike! Until then there's no spike.
Seriously tho, because this is a martingale system we're hoping to profit from a move to the top traded level and potentially some distance above that level before a retrace. The stop loss is there to stop things getting out of hand but the strategy is inherently risky because of martingale and because it's contrarian. If we had a 'spike detector' that took you out of a trade earlier than the stop then this would probably kill profitability as many of the final level trades would likely be killed at a loss just before retrace. This is what happens when the stoploss is moved too low, profitability falls off.
I don't think the answer is in looking for an indicator to predict a spike but more in doing what one can to be trading at the right time on fundamentals (as NanningBob says). After that the SL is the answer.
As usual I advocate extensive testing to help understand the probabilities involved. This EA is about saying at an entry level 'I think it's probable a retrace is about to occur'. Can't understand how anyone is considering this EA without extensive back testing to understand the probabilities. My opinion forward testing alone is useless until you've being doing it for a substantial number of trades in a range of market conditions.
cheers
Knoxy
This EA provides a very good spike indicator, probably better than most. When the action hits your stop you know you've got a spike! Until then there's no spike.
Seriously tho, because this is a martingale system we're hoping to profit from a move to the top traded level and potentially some distance above that level before a retrace. The stop loss is there to stop things getting out of hand but the strategy is inherently risky because of martingale and because it's contrarian. If we had a 'spike detector' that took you out of a trade earlier than the stop then this would probably kill profitability as many of the final level trades would likely be killed at a loss just before retrace. This is what happens when the stoploss is moved too low, profitability falls off.
I don't think the answer is in looking for an indicator to predict a spike but more in doing what one can to be trading at the right time on fundamentals (as NanningBob says). After that the SL is the answer.
As usual I advocate extensive testing to help understand the probabilities involved. This EA is about saying at an entry level 'I think it's probable a retrace is about to occur'. Can't understand how anyone is considering this EA without extensive back testing to understand the probabilities. My opinion forward testing alone is useless until you've being doing it for a substantial number of trades in a range of market conditions.
cheers
Knoxy
Aspice, officio fungeris sine spe honoris amplioris