Make that next week. I've had more success this weekend working on my EA than I anticipated. I'm expecting a sell signal for eur/usd in the first half of next week. I mentioned in the first post that I was on version 36 of my EA, now it's version 43 or 44. The biggest edition is a parabolic stop. How cool is that? lol That took a lot of trys to get right but it's the coolest thing ever. It's 10x better than any other stop method I've seen before. Here's how it works.
The main idea behind my system is that if you get in the market at a certain time, then there is a good chance that orders will be profitable after a certain number of hours. lol. I love being vague. Anyway, the parabolic stop comes from the same line of thinking. With a good entry, the price may bounce around at first, but as time goes on, the price should have less and less room to bounce around in the negative. Finally after a certain number of hours, the price needs to be either positive or the order is closed.
http://www.romantic-art-masters.com/fff.bmp
Just reverse everything in the picture for a buy order. The parabolic stop is the top right portion of a parabola with the very top being x pips above(or below for a sell) your entry point, and it crosses your order open price y hours in the future. At first I considered using a simple diagonal line with the same varialbes, but I felt that i could make a parabola would be more flexible and...... cooler. lol. And there probably are a few better reasons but I forgot them. Anyway this is the equation.
For a buy:
stopip=(opentime/(width))*(opentime*(gap/(width)))-gap
For a sell:
stopip=(-opentime/(width))*(opentime*(gap/(width)))+gap
opentime= time in hours that order has been open
width=width(in hours) of parabolo from the vary top straight above your entry point to where it crosses your order open price. . This determines how long you'll allow the price to be negative before it must be positive or be stopped out.
gap=hight(in pips) above your open price the parabolo starts. This determines how closesly your stop is to the order open price. The bigger this number, the more room the price has to bounce around before it stops out your order; the smaller, the less.
stopip is the parabolic line the price must be under(for a sell order) or above(for a buy order) before getting stopped out.
Once you have the stopip, use this little calculation to find if the current price is over or under the line.
averagepips/(stopip/opentime)>opentime
averagepips=is the absolute value of your order open price minus a sma with a period of 2. This means that the whole parabolic stop is running off a sma average, and not the actual price. This ensures that spikes will not stop your order out.
If the left side number is larger than the number of hours that your order has been open, then it's time to close the order.
And sorry, this is as much as I'm giving out. It's up to you to find the values for width and gap.
The main idea behind my system is that if you get in the market at a certain time, then there is a good chance that orders will be profitable after a certain number of hours. lol. I love being vague. Anyway, the parabolic stop comes from the same line of thinking. With a good entry, the price may bounce around at first, but as time goes on, the price should have less and less room to bounce around in the negative. Finally after a certain number of hours, the price needs to be either positive or the order is closed.
http://www.romantic-art-masters.com/fff.bmp
Just reverse everything in the picture for a buy order. The parabolic stop is the top right portion of a parabola with the very top being x pips above(or below for a sell) your entry point, and it crosses your order open price y hours in the future. At first I considered using a simple diagonal line with the same varialbes, but I felt that i could make a parabola would be more flexible and...... cooler. lol. And there probably are a few better reasons but I forgot them. Anyway this is the equation.
For a buy:
stopip=(opentime/(width))*(opentime*(gap/(width)))-gap
For a sell:
stopip=(-opentime/(width))*(opentime*(gap/(width)))+gap
opentime= time in hours that order has been open
width=width(in hours) of parabolo from the vary top straight above your entry point to where it crosses your order open price. . This determines how long you'll allow the price to be negative before it must be positive or be stopped out.
gap=hight(in pips) above your open price the parabolo starts. This determines how closesly your stop is to the order open price. The bigger this number, the more room the price has to bounce around before it stops out your order; the smaller, the less.
stopip is the parabolic line the price must be under(for a sell order) or above(for a buy order) before getting stopped out.
Once you have the stopip, use this little calculation to find if the current price is over or under the line.
averagepips/(stopip/opentime)>opentime
averagepips=is the absolute value of your order open price minus a sma with a period of 2. This means that the whole parabolic stop is running off a sma average, and not the actual price. This ensures that spikes will not stop your order out.
If the left side number is larger than the number of hours that your order has been open, then it's time to close the order.
And sorry, this is as much as I'm giving out. It's up to you to find the values for width and gap.
