- Most Forex traders lose all their money.
- Using the robot posted here in trading Forex does not guarantee success.
- Trading this robot could lead to serious financial loss.
- Trading this robot without understanding its underlying trading strategy guarantees traders will lose their money.
Here are the guts of the email I received from Jollyroger:
"I am not a coder but have been trading various methods with varying success for the past several years.
After considerable study and sometimes painful experience I have come across a method that follows both the primary axiom of Forex trading and the 4 pillars upon which successful trading is built. That system is the Inside Bar trading system or DIBBS as it is often called.
The system follows the primary axiom of “Only BUY a market that is up for the day and only SELL a market if it is down for the day as determined by the previous day’s close.. It incorporates the four pillars of successful trading., Manage Risk, Stay with the Trend, Let your Profits Run and Maintain Patient Discipline. There is only one problem…It involves trading specific hours in the London market and I happen to live in the US.. The good news is that the parameters of the system would appear to ideally set up to code into an EA. (You knew that was coming didn’t you?)
The rules are as follows:
1H Timeframe. Begin trading at 06:00 GMT and stop trading at 16:00 GMT..
• On an H1 chart look for an inside bar to form.
• If the price is> than the previous day’s close it is a buy trade and if < than the previous day’s close it is a sell.
BUYING (SELLING IS THE EXACT OPPOSITE)
• Place 2 buy orders when the PA penetrates the high of the inside bar.
• Place a stop loss on both orders at the low of the inside bar.
• Place a take profit on one of the orders at the same distance from the open as the stop loss but in the opposite direction of course.
• Do NOT place a TP on the other order.
One of two things will eventually happen:
1. Both orders will close at the stop loss for a small loss or
2. The order with the TP will close at a profit
Since your closed order was profitable for the exact same amount as the stop loss on the unclosed order that order is in effect “FREE” and heading in the direction of the expected trend. Even if it reverses and closes at it’s SL the trades are a break even..
After giving the FREE order room to breath (depending on the volatility of the currency pair) I place a trailing stop LWMA(21) on the bar open and let the order ride as long as it can until the trailing stop takes it out at what is often beaucoup pips.
Steve, if you think these ideas have merit and peak your interest you can learn more from the thread “The DIBBS Method, No Free Lunch continued”.. The first page is informative and concise as are the posts by Peter Crowns."
The attached does as described above, or at least I think it does; it appears to in a few backtests but there could easily be thingy's to discover.
The inputs are straightforward - all the usual suspects. Leave CriminalHasSundayCandle set to true if this is the case, otherwise change it to false.
Watch the CriminalIsEcn input; get this wrong and the bot will sit there until the Second Coming without sending trades. Remember that IBFX are ECN, even though they try to hide this for reasons known only to their deepest, darkest collective inner psyches.
The bot will draw yellow candle high and low lines when an inside bar has formed. If a subsequent ib forms, it should move the lines accordingly. The turquoise dashed line is yesterday's close price; this will explain why some apparent triggers do not actually result in a trade.
I have not visited the DIBBS thread, so will try to do so over the weekend to see what insights ther are to glean.
Others have and are already starting to contribute. Make sure you follow the links in MurpyhMan's post at http://www.forexfactory.com/showpost...68&postcount=7 for some fantastic information.
Have a play guys, and see what you think.
Edit 5th Sept 2011: MurphyMan just pm'd me to ask me to add NB V10 two moving average trend detection to this bot, and to allow for trades to be taken only in the direction of the trend. I have done this in the latest update.
Note for the newbies: an 'inside bar' is a two-candle formation; the first candle has a high that is higher than the second, and low that lower than the second. The second candle lived 'inside' the range of the first.