Willing to build a Fractal Trendline EA

I have recently learned how to programmatically draw fractal trendlines. I'd like to build a profitable EA using breaks of these trendlines (using the last two unchanging fractals). Does anyone have experience with rules to make a system like this consistently a winner?

If they did have rules which make this a constant winner, I doubt they'd be sharing it =D

I'm looking for a fair exchange of trading rules for the development of an EA. However, given that this is my first post (even though I've read a lot of threads), I guess I'd probably be the last programmer someone would want to share their system with.

I'm going to forge ahead with my own experimentation if anyone wants to collaborate.

Happy Trading!

I'm not a programmer, but you should look up Tom DeMark. He has written a few books on the subject of Trend Line breaks and how to qualify them. I am sure an EA could be written around these rules.

Thanks for the thoughts. I've studied a bit of Tom Demark's material.

It would be good to read up thoroughly on TD lines / points (Tom DeMark) if you are attracted to this style of trading at this stage, and I have attached the best indicator I have found through the years to alert you to connected fractal lines being touched and possibly being a breakout. It is used for DIAGONAL S and R lines with either fractals or TD points as the boundaries.

But, those sexy COUNTER-TREND breakout are definitely not on your side if you want high percentage trades to be factored into an EA. It was explored deeply in the past years through someone named Mouteki (Google it), who wrote this indicator (and it has been tweaked and renamed over the past few years). There were good threads in numerous forums and then he disappeared (as RonRaygun stated, I think he found rules that worked for him and he faded into the sunset).

The problem is that there are lots of false signals, which are very common for channel trading systems. Trying to develop an EA around it is very tricky and many have tried but those who have succeeded have made their own rules based on their own experience, tolerance, account size, time allowance, sensitivities, etc. and have kept quiet.

I use this indi all the time, and is always on my charts, but only to alert me to diagonal boundaries being touched, not as an entry signal. Trading breakouts on anything less than a 4 hr. chart can is a sure-fire way to bang your head repeatedly on your computer. If you are a visual trader (and you should be for a few years to get familiar with price action before you start to use system generated orders from EAs, IMHO) this indi can a great way to let you observe price movement in a diagonal price action pattern. When combined with horizontal boundaries being touched can be a nice alerting system to observe price breaking zones of S and R. Observe this indicator quietly and slowly and it's many options and take the time to understand it deeply (this may take weeks and weeks) before rushing off to make an EA (most who have tried have failed). This one indicator taught me a lot about price movement and boundaries. I have put a few notes in the code as well.

You will learn these things along the way, but you learn from building, learning, and tearing down your systems, and then building, learning, tearing down your systems. I am assuming (and I may be wrong) that based on the date you joined FF that you are fairly new. If you are, don't be seduced by the sexy breakout so easily. Get to know their nature and you will be the one doing the seducing.

Walk, don't run in this game. Cheers.

Pipsqueak4x,

Thanks for taking the time to share your thoughts regarding diagonal breakouts, and also for attaching that indicator. I will certainly take your advice about understanding what the indicator does thoroughly.

I've been trading forex and programming EAs for about a year now. Early on, I got stuck in the trap of thinking I was smart enough to have success quickly since I've been accustomed to having success at a lot of things within a short period of time. Needless to say, I was humbled very quickly, and several times.

I have since learned to walk after having nearly killed myself running. Since I have a strong technical background, I have naturally gravitated toward building EAs to assist me in my trading. It would be nice to develop one EA that works well in the majority of market conditions, but that seems to be an extremely difficult, to nearly impossible, task (but I'm trying). Up to this point, I've built 10 or so EAs based on various ideas that work "some of the time".

False breakouts are definitely a problem with breakouts in general. Also, defining exit points to get your risk/reward at an acceptable level can be tricky. From what I've experienced, these things make it hard to fully automate a breakout system. At this point, my general thought process for this EA revolves around using MAs to define trend direction, and then to trade breaks of fractal trendline corrections in the trend direction. I also have very general ideas about the best exit points for these trades (cross of fast moving MAs, RSI extremes, etc).

Perhaps I'm already at the point where I just need to experiment, experiment, experiment, until I find something that works. Then I'll ride off into the sunset like everyone else who finds something that works for them

But not before I share the secret with my friends at FF

hello poss & pipsqueak & anyone else that might be able to help.

i was just about to create a new thread when i came across this one. i have been using a demark indicator using fractals for creating the TL's instead of the traditional demark placements for a while now. the indicator i have been using is attached. it is very similar to the one you attached. both have the same problem i have been experiencing and that is the TL's paint too late. 5 or 6 bars later than the fractals. i realize that the triangles disappear if the swing doesn't hold, but i am not concerned so much w/ that. i was hoping to modify this indicator so the lines simply kept up w/ the fractals. samples of the error for the long and the short side are attached.

try as i might, i have not been able to modify the indicator and when i try, i end up making it un-useable. the extent of my skills in that department appear to be limited to color change & line width (if im lucky).

any help w/ my dillemma would be most appreciated. i have searched & searched the thread for someone that might have had the same need for this change, but no such luck to date.

cheers & good trading to you.

[EDIT:] the indicator will consider a double top to qualify a swing high/low (fractal) & i am good w/ that aspect of the indicator.

these indicators are terrific and of a lot of use to me. Thanks all.

Does anyone know if it's possible to alter these indicators (possibly by stealing from another indicator) to add criterior for the break of the lines? What I mean is, say you want to see the last 10 trend lines, it shows all of them, even if they have been broken. It would be useful for them to vanish if broken so only the still valid lines remain...

Of course the criterior for what defines a line as being broken is a bit controversial but thought I'd put this out and see what response it generates...

Dave

Possmer && Co.

maybe (if not already found) you can use/check this:

http://www.forexfactory.com/showthread.php?t=130707

Viva l' Pips,

Have fun,

Simon