From the Bill Williams system/use of fractals, trades are entered when price action goes higher/lower by 1 pip the last fractal. This serves the purposes of breakouts that don't fade back into a bracketed market.
But 70 % of the time, markets are bracketed and we are told not to trade these times. This seems a pity when an EA can be coded to also make money during these sideways moving times.
Picture these 3 possible situations.
BREAKOUT
Eg, prices spike up 1 pip above the last fractal. Hedged buy and sell orders are placed. Prices fully breakout upwards. The sell order is closed on a tight stop, and the buy order makes all the money.
FALSE BREAKOUT
Eg, prices spike up 1 pip above the last fractal. Hedged buy and Sell are orders placed. But prices only go up say another 5-10 pips and then fade back into the sideways trading range - or worse, head south. If the EA can be set to move the buy order to break even (or BE + 2 pips) after say 5-7 pips above entry, then the buy closes out with a small profit, and the sell order makes a respectable scalp profit.
SIDEWAYS MARKET
Eg, prices drift up 1 pip above the last fractal. Hedged buy and sell orders are placed. Prices then drift down into the sideways moving trading range. The buy can be closed on a tight stop, the cost of which is covered by the sell order being in profit to the same amount.
EA NEEDS THESE INPUTS
Hedged Orders (true/false)
Move to Break Even at (enter pips at which order moves to BE)
Money Management
Take Profit
Stop Loss
Trailing Stop
xux99 did a brilliant job of Uranis v2.0 which can be found in post 1 of http://www.forexfactory.com/showthread.php?t=202556 and allows users to turn on or off several indicators. If Fractals could be added to this EA, it would be a real winner if used wisely with tight stops and break even set points.
But 70 % of the time, markets are bracketed and we are told not to trade these times. This seems a pity when an EA can be coded to also make money during these sideways moving times.
Picture these 3 possible situations.
BREAKOUT
Eg, prices spike up 1 pip above the last fractal. Hedged buy and sell orders are placed. Prices fully breakout upwards. The sell order is closed on a tight stop, and the buy order makes all the money.
FALSE BREAKOUT
Eg, prices spike up 1 pip above the last fractal. Hedged buy and Sell are orders placed. But prices only go up say another 5-10 pips and then fade back into the sideways trading range - or worse, head south. If the EA can be set to move the buy order to break even (or BE + 2 pips) after say 5-7 pips above entry, then the buy closes out with a small profit, and the sell order makes a respectable scalp profit.
SIDEWAYS MARKET
Eg, prices drift up 1 pip above the last fractal. Hedged buy and sell orders are placed. Prices then drift down into the sideways moving trading range. The buy can be closed on a tight stop, the cost of which is covered by the sell order being in profit to the same amount.
EA NEEDS THESE INPUTS
Hedged Orders (true/false)
Move to Break Even at (enter pips at which order moves to BE)
Money Management
Take Profit
Stop Loss
Trailing Stop
xux99 did a brilliant job of Uranis v2.0 which can be found in post 1 of http://www.forexfactory.com/showthread.php?t=202556 and allows users to turn on or off several indicators. If Fractals could be added to this EA, it would be a real winner if used wisely with tight stops and break even set points.