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Abokwaik replies to PMs 95 replies

Hanover - can you help me with MT4 qs please? 4 replies

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Hanover replies to PMs

Which pair is leading when impulse occurs (not economic news): EURUSD, GBPUSD, USDJPY or USDCHF?
Quoting evgeny22
Which pair is leading when impulse occurs (not economic news): EURUSD, GBPUSD, USDJPY or USDCHF?
I don't believe that any one pair leads another pair, at least as far as I know. EURUSD has the overall highest volume of orders therefore I guess it would have the highest probability of having any first order(s) executed? But anyway, all of this happens within microseconds, and the interbank market is outside the reach of the retail trader. At the retail level it might depend on your br0ker, in terms of which client's orders get priority execution.
Hello, I have a question.

I'm a beginner in trading with Forex and have problem with understanding ''relationship'' betwen Leverage and ''Stop loss pips''.
I understand margin, leverage, pips, units and other things.

My problem is this:
So let say pair EUR/USD = 1
If i have Micro lot = 0.01 = 1000 units
So 1 pip = 0.10€

If i wanna buy:
- 1000 units leverage 1:50 = 20€ margin
- Stop loss = 50 pip = 5€
- 1000 units leverage 1:200 = 5€ margin
- Stop loss = 50 pip = 5€

So if i have the same amount of units and direfent leverage (1:50 --- 1:200) is Stop loss (50 pips) on the same point on graph and close both on -5€. The difference is only in margin i need?

The only danger is if i buy for 20€ margin on leverage 1:200, then is pip 0,4€ and Stop loss (50 pips) = 20€.

Am I right?

Thanks for the answer and have a nice day.
  • Post #884
  • Quote
  • Edited at 8:16pm Nov 21, 2017 1:16pm | Edited at 8:16pm
Quoting Simonho
Hello, I have a question.........
Many new traders confuse risk (stoploss) and leverage. They operate independently of each other.

Risk is determined by your stoploss, and the number of lots. If you buy 0.01 lots with a stoploss of 50 pips then your risk is 0.0050 x (100,000 x 0.01) = 5 euros, no matter what the leverage is. If price reaches your stop loss, then you will lose 5 euros, regardless of the leverage.

Leverage merely determines how much margin (money) you need in your account in order to open the trade. In calculating at the margin requirement, the stoploss is irrelevant. The formula for calculating the margin requirement can be found here. Hence in your example, if the leverage is 50:1, your account is denominated in euros, and you are trading EURUSD, then the margin required is 1/1 x (100,000 x .01) / 50 = 20 euros. If you have less than 20 euros in your account, your br0ker will not allow you to open the trade, regardless of your stop loss. if the leverage is 200:1, then the margin required is 1/1 x (100,000 x .01) / 200 = 5 euros, i.e. you need only 5 euros in your account to open the trade.

If price moves against you, and you don't have enough money in your account, then you could receive a 'margin call' (and a closeout of your account) before price reaches your stop loss. Here is Oanda's formula for calculating the price that would cause a margin call. This can differ from br0ker to br0ker.
If I buy 0.01 lot, then will Stop loss close leverage 1:50 and 1:200 at the same price with -5€. It will not close 1:200 faster than 1:50? Its only different margin used?


Thanks for the answer and have a nice day.
Quoting Simonho
If I buy 0.01 lot, then will Stop loss close leverage 1:50 and 1:200 at the same price with -5€. It will not close 1:200 faster than 1:50? Its only different margin used? Thanks for the answer and have a nice day.
Yes, that's correct.

The only exception is if you get a margin call before price reaches your stoploss, because you don't have enough money in your account.
Thanks now i understand.

Have a nice day.
can you please add me an (up ward and downward) arrow symbol whenever the histogram line crosses 180 level (upward arrow ) and -180 level (downward arrow) in Retracement Finder indicator



Attached File
File Type: mq4 Retracement Finder.mq4   5 KB | 194 downloads




thanks in advence
Quoting rajesh.d
can you please add me an (up ward and downward) arrow symbol whenever the histogram line crosses 180 level (upward arrow ) and -180 level (downward arrow) in Retracement Finder indicator
Sorry, but I'm no longer coding or troubleshooting indicators or EAs for other traders.
For possible alternatives, please see the 'MT4 Programming' section in post #1.
Hanover, regarding Claudia's Wine Bar, what are the parameters for setting the times to trade? Is there a way to set a range of time to trade?
Quoting BrokeCollege
regarding Claudia's Wine Bar, what are the parameters for setting the times to trade? Is there a way to set a range of time to trade?
This is possible only if your version of the EA has the parameter TimesToPlaceOrders, which works as follows:

You can enter up to 10 pairs of times in the form HHMM or HHMMSS, separated by commas; each pair of entries represents a start time and end time. If the current MT4 time is between any of these start/end time pairs, then an order can be placed, provided that all other criteria are met. Otherwise the order is not placed, and a suitable error message is generated.
Example: 0300,0600,2300,0200
Orders will be placed only between 0300 and 0600 hours, and between 2300 and 0200 hours (MT4 time). All other times are disallowed.

If you enter a minus sign (-) as the first character, then -- conversely -- the pairs of times represent the times of day when orders will NOT be placed.
Example: -0300,0600,2300,0200
Orders will NOT be placed between 0300 and 0600 hours, nor between 2300 and 0200 hours (MT4 time). Any other times are ok.

If you leave the parameter blank, then any time of the day is ok.

At least that's the way it's supposed to work, as best as I can remember. But it's been several years since I worked with the EA, and I make no promises, use it at your own risk.
Quoting MoneyZilla
I know you! You are the smartest guy around! You do know perfectly well where exactly the pepperstone thing goes! Lets just keep it in betwen us two!:-))) I think, this is the best online marketing I have witnessed on a forum. And I come from an industry where a lot of spam and fake reviews are just industry standards. It is not as bad as the "market news" on reuters/bloomberg/cnbc/ext are. But still... Never seen anything as half good as provided by you here! You have my respect for that! (bow) :-)))
You flatter me, LOL. We've had some great discussions, though. I'd be really interested to meet you some day!

You've completely lost me with the 'Pepperstone' thing, however, but never mind. You're good at seeing things that I miss.
  • Post #893
  • Quote
  • Edited Dec 5, 2017 2:52pm Dec 4, 2017 10:00pm | Edited Dec 5, 2017 2:52pm
Qualitative vs quantitative analysis

I will try to explain this using an analogy. Supposing I have two special coins, one which is biased to yield 'heads' 75% of the time, while the other is biased to yield 'tails' 75% of the time. I determine which one of the coins I will toss using a random '50/50' process. My friend Adam knows which coin I'm about to toss, but my friend Bill doesn't. The best that Bill can do is to perform a quantitative analysis of past outcomes, which over a vast number of tosses should appear to him as a completely random walk, hence he has no way of obtaining an edge. Whereas Adam, with his 'insider' information, knows before each toss whether heads or tails is the higher probability bet, giving him a 75:25 edge on each toss. That's what I mean by qualitative analysis: it's about knowing what the cause of a given set of outcomes is, as opposed to studying the effect, i.e. the outcomes themselves.

Some points to note:

1. Adam has a significant edge, while Bill doesn't, despite the fact that the same coin is always being tossed, and the outcomes are exactly the same for both men.

2. Because the coins are being selected by a 50/50 process, the ratio of heads to tails over a large number of tosses should approach 50:50.

3. Adam's edge equates to the extent to which the coins are weighted. For example, if the coins have 90% probability of yielding heads and tails respectively, then Adam's edge increases to 90:10. And if the coins yield heads and tails respectively with 100% certainty, then Adam is guaranteed a 100% win rate, while all the time Bill's win rate remains constant at 50%, no matter what strategy he might decide to use.


This is a big reason why I've shifted my focus from TA (how price moves) toward FA (why price moves). Of course there are a number of different 'drivers' simultaneously playing 'tug of war' pulling price in each direction (more here), and for every willing buyer there must ultimately be a willing seller. However I believe there are occasions when a single underlying reason (or a confluence of reasons) are evidently dominant enough, that it's possible to determine whether the overriding sentiment is more likely to be bullish or bearish -- not with absolute certainty, but on a better than 50/50 basis -- by understanding how a majority of bank and institutional traders tend to think and operate. Of course these reasons can be trumped by more compelling reasons, immediately any fresh news (or rumors) are aired. But the trader has one more trick up his sleeve: he can be as selective as he wishes, in terms of picking his opportunities.

I will post about this topic in greater detail, when I get some time.
  • Post #894
  • Quote
  • Edited Dec 5, 2017 6:58pm Dec 4, 2017 10:17pm | Edited Dec 5, 2017 6:58pm
Quoting hanover
Qualitative vs quantitative analysis I will try to explain this using an analogy. Supposing I have two special coins, one which is biased to yield 'heads' 75% of the time, while the other is biased to yield 'tails' 75% of the time. I determine which one of the coins I will toss using a random '50/50' process. My friend Adam knows which coin I'm about to toss, but my friend Bill doesn't. The best that Bill can do is to perform a quantitative analysis of past outcomes, which over a vast number of tosses should appear to him as a completely random...
Nice post H....but QA with a large enough sample size should be able to discriminate the bias in the coin through statistical approaches (eg. Baysean approach). With low sample sizes however I totally see where you are coming from provided Adam knows which coin is being tossed.

Where we part ways in philosophy is in whether a reactive or predictive approach is the way forward to navigating the markets and there are pluses and minuses to both camps.

In terms of FA.....what measures do you guys use to manage risk and can you overlay your approach successfully with diversification to manage risk-weighted returns....or do you invest heavily in a concentrated portfolio?
Quidquid latine dictum, altum videtur
  • Post #895
  • Quote
  • Edited at 11:34pm Dec 4, 2017 11:11pm | Edited at 11:34pm
Quoting Copernicus
Nice post H....but QA with a large enough sample size should be able to discriminate the bias in the coin through statistical approaches (eg. Baysean approach). With low sample sizes however I totally see where you are coming from provided Adam knows which coin is being tossed. Where we part ways in philosophy is in whether a reactive or predictive approach is the way forward to navigating the markets and there are pluses and minuses to both camps. In terms of FA.....what measures do you guys you to manage risk and can you overlay your approach...
Agree about the pluses and minuses, and of course that QA is totally viable, there are plenty of successful quants around!!

FWIW I described my basic trading method here. It tends to change along with market conditions, and also as my knowledge (hopefully!) expands, but that's the general idea. If I'm not too heavily involved in software projects then I'll monitor the M15 charts during the UK/US sessions (= late nights here in NZ!) using S/R zones, climax volume, and other stats to try to hit more accurate entries (= tighter SLs, but have to take red news into account). Also sometimes I take one-off 'pure FA' trades like my recent NZD shorts (here). For better or worse I don't use diversification (I don't fully understand the optimal ways to use it, beyond this). My normal SL on a D1 chart is 1-2 ADRs = 1% equity risk. I pair currencies on the basis of FA-based strength/weakness, rather than from a diversification standpoint, although I'm careful not to become over-committed/exposed to one particular currency.
Quoting hanover
{quote} Agree about the pluses and minuses, and of course that QA is totally viable, there are plenty of successful quants around!! I described my basic trading method here. It tends to change along with market conditions, and also as my knowledge (hopefully!) expands, but that's the general idea. If I'm not too heavily involved in software projects then I'll monitor the M15 charts during the UK/US sessions (= late nights here in NZ!) using S/D zones, climax...
Nice mate. I had a squizz at the link you referred me to and it took me back in time to some of the very successful FA traders I bumped into who dabbled in equities. At that time I was very unfamiliar with the concept of 'pairs' or 'spread trades'....but it triggered my old thought processes about how the technique of pairs trading eliminates market risk....thereby allowing you to focus on FA in a much cleaner manner. I remember trying to emulate these guys with a degree of success taking positions on say long BHP and short CRA (now Rio Tinto) thereby significantly snuffing market volatility allowing a long term value judgement of outperformance by BHP to play out.

If only I had taken it more seriously I might not have been swimming in naivety for such a long time.

Thanks for sharing mate :-)
Quidquid latine dictum, altum videtur
Quoting hanover
Adam, with his 'insider' information

Could it just be that Adam has some friends from Pepperstone?







Thanks for sharing : )
Quoting ReverseFlash
{quote} Could it just be that Adam has some friends from Pepperstone? Thanks for sharing : )
*sniggers*......
Quidquid latine dictum, altum videtur
Quoting ReverseFlash
Could it just be that Adam has some friends from Pepperstone? Thanks for sharing : )
Who the heck is Pepperstone?
Quoting Copernicus
it triggered my old thought processes about how the technique of pairs trading eliminates market risk....thereby allowing you to focus on FA in a much cleaner manner. I remember trying to emulate these guys with a degree of success taking positions on say long BHP and short CRA (now Rio Tinto) thereby significantly snuffing market volatility allowing a long term value judgement of outperformance by BHP to play out.
I did something very similar when I was trading CFDs, and for the same reason. I'd buy the indices of the strongest performing industrial sectors on the (London) FTSE, and sell the indices of the weakest ones. But then in 2006 I got conned into switching to Forex....... LOL
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