I need help with very profitable EA

I have been a big fan of the London and US breakout strategy for some time and found this forum a fantastic resource for helping me developing it further. Just running a straight breakout back test it is almost successful 95% of the time. But it does have some issues.

The biggest problem is the double top. There is nothing worse then when the price hits your order stop by only a few pips and then goes in the opposite direction. The second problem is draw down. I ran a test on the EURUSD pair with no stop loss over the last 8 months and got an incredible 100% success. The problem though is that some of the orders took a few days to hit profit causing a 38% draw down. I am uneasy with having no stop loss and a large draw down. But there is a 100% win. Other currency pairs are similar but the draw down kills the account first.

So I have come up with a couple of changes to give great win rates, with a tight stop loss. I have tried a standard stop loss before but most trades got stopped out before they went to profit. Having a large stop loss was crazy because of the small pip targets.

Before I go into the detail of the strategy I want to share the results of the changes I made. With 5 pairs, London breakout only, starting balance of €10,000 and trading 10 lots with a target of just 10 pips and one trade per day per pair I got a return of over €67,000 for the month of September alone. I have attached the results. I did manage to get €100,000 but I have not recorded the results. This result can be doubled by further splitting then lots to hit 10, 20, 60pips while trailing the stop. I have also found at least 30 trades that would have gotten 200-300 pips on the day if the stop trailed and only executed when 3EMA crossed the 21EMA. I will include a chart as an example. Also there are many more trade profits if you trade the US also.

Hopefully I have shown the potential of the breakout strategy. I should point out that I have used Kores EA for the test. He has done great work on this. However I would like to have it updated so it can reach it's full potential.

To limit the double top orders a 3MA should be used. When the moving average hits the order point the trade should be initiated, not when the current price hits the order point. This ensures that the price has momentum and strength. This cuts out so many false breakouts. If a false break out does occur then a 10-20 pip stop loss will protect and you will win when the trade breaks out in the other direction.

I would very much appreciate if someone could update Kores EA with the following.

EMA Orders: True/False (if set to true the orders will only execute if the EMA hits the stop order)
EMA period: (I would normally set to 3 but it would be better to allow users input to test different periods)
EMA Trailing Stop: True/False (this will allow some or all lots to close when the EMA hits the 21EMA)
EMA Lot size of total: (if the total lots is set to 3 as an example and this parameter is set to 1, then 1 of the 3 lots will follow the EMA cross rule, the user could set the other lots to having a trailing stop and moving the stop to 10 pips)
If stopped, Trade again: True/False (if the maximum trades is set to 1 but the stop loss is hit, then if true another trade can be executed for that day)


If some can update this EA I would be very happy to extensively test it and share the settings with the results I achieve. I am 100% confident in this strategy.

I was just checking the charts today for the break out as I always do daily and the first one I came across was a 260 pip winner. Once the 3EMA crosses the 21EMA the trade will close.

I checked 9 other pairs also today and got all winners at 10 pips min.

Post Update: I just noticed after I posted this, that this is a perfect example of the double top I discussed. Normally the long order would have initiated. But look at the black 3EMA it did not cross. Instead we would have caught the movement downwards.

ukkpower,
I'm not a programmer but if you look at the bottom of the code on nanningbob's EA's- http://cdn.forexfactory.com/images/attach/zip.gif 2ND ED. NB 4H TRADING SYSTEM.zip you will see how he has coded them to initiate on a 3ma (closed)/3ma (open) cross. You could substitute your 3/21 cross with this language and maybe get some of what you're after. Can you post the updated EA when you get it working? Thanks

Thanks Toothman, I will have a look and if I can update the code I will post here.

I have a very basic knowlege of programming but might be able to do something.

I think it still needs a good progammer to fully complete it.

So the trades are open and closed on 3mea cross with 21 ema ?

Trades are open when the 3ema crosses the top or bottom of the range before the London open.

Top crossing for a long and the bottom for a short. The exact same rules for the London and US break out which is well covered on this forum but the trade is initiated not by the price crossing the stop orders but the 3ema instead.

My target is always 10 pips per pair as I am looking for 50 pips per day. But I would let the trade run until either the 3ema crossing the 21ema or it comes back to the 10 pip stop.

I am trying nanningbob EA with some variations for MA crossing (like 5MA and 21MA etc.) I have altered one for 3EMA cross and it is a simple EA, trading purely ema cross on any TF and it works. Originally it was a martingale type (I still use 2 levels) but I have exclude that option here. I am limited by my very basic programming skills..
I have also tried to alter your EA for just EMA cross. I don't know whether it works. Hope it is a starting point and plese keep me informed about developments.