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Attachments: 1M Envelope Scalping System
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1M Envelope Scalping System

  • #1
  • First Post: Edited Aug 21, 2007 12:30pm Aug 20, 2007 8:42pm | Edited Aug 21, 2007 12:30pm
I hope this will be the start of a new profitable thread. Please see attached for rules. I believe this is a profitable mechanical method. I have briefly tested, and I believe it can survive both short & long term. Kurka Fund helped develop the attached EA as a starting point. It does not follow the exact rules of the system. This thread is for anyone comment on, forward test, have profitable fun with and to no blow up their account with. Do not over leverage and get greedy with this system.

1-5 pip TP is recommended depending on the pair.

Anyone's help to develop an EA would be appreciated, as I do not have any experience in Mq4.

The attached 1MEnvelopeTools.zip file contains:
- MT4 Profile so you can load all charts up as I have them
- a candle/bar ending timer (indicator)
- Excel Spreadsheet to calculate Average entry price
- Scripts used to enter trades (set up hot keys for quick entry)
- EA which can hopefully be developed
- Chart template

Scripts go in this folder:
C:\Program Files\Interbank FX Trader\experts\scripts\

Experts (EA) go here:
C:\Program Files\Interbank FX Trader\experts\

Templates go here:
C:\Program Files\Interbank FX Trader\templates\

Profile folder goes here:
C:\Program Files\Interbank FX Trader\profiles\

Indicators go here:
C:\Program Files\Interbank FX Trader\experts\indicators\

After you put the files and folders where they belong, restart MT4.

Attached Image (click to enlarge)
Click to Enlarge Name: 1MEpic1.jpg Size: 77 KB


Attached Image (click to enlarge)
Click to Enlarge Name: 1MEpic2.jpg Size: 65 KB
Attached File(s)
File Type: zip 1MEnvelopeTools.zip   23 KB | 4,790 downloads
  • #2
  • Aug 20, 2007 9:40pm Aug 20, 2007 9:40pm
Quoting jeffreytp
I hope this will be the start of a new profitable thread. Please see attached for rules. I believe this is a profitable mechanical method. I have briefly tested, and I believe it can survive both short & long term. Kurka Fund helped develop the attached EA as a starting point. It does not follow the exact rules of the system. This thread is for anyone comment on, forward test, have profitable fun with and to no blow up their account with. Do not over leverage and get greedy with this system.

1-5 pip TP is recommended depending on the pair.

Anyone's help to develop an EA would be appreciated, as I do not have any experience in Mq4.

Attachment

Attachment

What is the stop loss?
  • #3
  • Aug 20, 2007 9:50pm Aug 20, 2007 9:50pm
Quoting jeffreytp
I hope this will be the start of a new profitable thread. Please see attached for rules. I believe this is a profitable mechanical method. I have briefly tested, and I believe it can survive both short & long term. Kurka Fund helped develop the attached EA as a starting point. It does not follow the exact rules of the system. This thread is for anyone comment on, forward test, have profitable fun with and to no blow up their account with. Do not over leverage and get greedy with this system.

1-5 pip TP is recommended depending on the pair.

Anyone's help to develop an EA would be appreciated, as I do not have any experience in Mq4.

Attachment

Attachment
It does not use stops. At least, the form of this system I am familiar with doesn't.
It's a type of grid system.

Put the envelope on a chart and look at it following the rules. You'll see how it works.
  • #4
  • Aug 20, 2007 10:23pm Aug 20, 2007 10:23pm
Quoting aelimian
What is the stop loss?
No stop loss. Have to manage the position, and trade when the system tells your to trade. Depending on the pair and time of day, you can make this a 5 pip/day and call it a day, or trade it round the clock and bring it all in...
  • #5
  • Aug 20, 2007 10:37pm Aug 20, 2007 10:37pm
Quoting jeffreytp
No stop loss. Have to manage the position, and trade when the system tells your to trade. Depending on the pair and time of day, you can make this a 5 pip/day and call it a day, or trade it round the clock and bring it all in...
Thank you. please can you explain the following parts of the rules?

a) the low based off of the bid, is > Env(14) Lower. Now apply Step 1 again on a future bar/candle.

b) "the high based off of the bid, is < Env(14) upper." [/font]
  • #6
  • Aug 20, 2007 10:45pm Aug 20, 2007 10:45pm
Take a look at the AUDUSD on the 1M. Look at all these opportunities. An easy 30-40 pips with a 5 pip TP over the last 2 hours alone.

Attached Image (click to enlarge)
Click to Enlarge Name: example.jpg Size: 97 KB
  • #7
  • Aug 20, 2007 10:54pm Aug 20, 2007 10:54pm
Quoting jeffreytp
Take a look at the AUDUSD on the 1M. Look at all these opportunities. An easy 30-40 pips with a 5 pip TP over the last 2 hours alone.

Attachment
How do manage a situation when following a sell the price does not return to the envelope but keep going up outside the envelope? Please can you restate the rules in a simpler format.
Thank you very much.
  • #8
  • Aug 20, 2007 11:01pm Aug 20, 2007 11:01pm
Quoting aelimian
Thank you. please can you explain the following parts of the rules?

a) the low based off of the bid, is > Env(14) Lower. Now apply Step 1 again on a future bar/candle.

b) "the high based off of the bid, is < Env(14) upper."
Here is what I am talking about:

AT the close of this candle would be your first entry point b/c the value for the high price of the bar/candle was > Env Upper.
Attached Image


Do nothing during this candle:
Attached Image


Do nothing during this candle:
Attached Image


During this candle you can see @ the close, the high was less than the Env Upper value, therefore if on the next candle close, the high was greater than the Env Upper, you could sell again if you wanted to.
Attached Image


This is the first possible reentry point for a sell for reasons mentioned above.
Attached Image
  • #9
  • Aug 20, 2007 11:09pm Aug 20, 2007 11:09pm
Quoting aelimian
How do manage a situation when following a sell the price does not return to the envelope but keep going up outside the envelope? Please can you restate the rules in a simpler format.
Thank you very much.
If price were to keep going up and did not retrace and hit your TP, then according to the rules you would continue to reenter. On paper, average your entry price and adjust your TP for all open trades based on the average entry price. For instance:

BUY Entry 150.20 Initial TP = 150.25
BUY Entry 150.05 Initial TP = 150.10
BUY Entry 149.80 Initial TP = 149.85

Average Entry price:
(150.2 + 150.05 + 149.8)/3 = 150.02

Adjust TP for all open orders on this pair to 150.07

You may want to use judgment and decide not to reenter unless it goes against you say 25 pips, or 50 pips, etc. This system will result in drawdown. This is not necessarily a bad thing as long as the probability of correction is high (which it is), and the trades are managed as described.
  • #10
  • Aug 20, 2007 11:20pm Aug 20, 2007 11:20pm
Quoting jeffreytp
If price were to keep going up and did not retrace and hit your TP, then according to the rules you would continue to reenter. On paper, average your entry price and adjust your TP for all open trades based on the average entry price. For instance:

BUY Entry 150.20 Initial TP = 150.25
BUY Entry 150.05 Initial TP = 150.10
BUY Entry 149.80 Initial TP = 149.85

Average Entry price:
(150.2 + 150.05 + 149.8)/3 = 150.02

Adjust TP for all open orders on this pair to 150.07

You may want to use judgment and decide not to reenter unless it goes against you say 25 pips, or 50 pips, etc. This system will result in drawdown. This is not necessarily a bad thing as long as the probability of correction is high (which it is), and the trades are managed as described.
Thank you very much.
  • #11
  • Aug 20, 2007 11:24pm Aug 20, 2007 11:24pm
Quoting aelimian
Thank you very much.
I have been in the AUDUSD for the last 15 minutes. EURJPY looks good now to. Possible entry coming up.
  • #12
  • Aug 21, 2007 9:44am Aug 21, 2007 9:44am
Quoting jeffreytp
I have been in the AUDUSD for the last 15 minutes. EURJPY looks good now to. Possible entry coming up.
Please what pairs do you trade with this system?
Do you have absolute drawndown in pips at which point you will stop trading?
  • #13
  • Aug 21, 2007 10:43am Aug 21, 2007 10:43am
I was pretty impressed at how well this system performed today. I only traded this manually from 9:15am est - 11:30am est. I made 132 pips. Each trade had a 5 pip TP unless I was averaging orders, which only happened a few times. Attached are my statements. Although this can work with an EA, I prefer trading it manually as sometimes discretion is key. Maybe time will tell and an EA will suffice.

During this trading time these were the most active/favored pairs:

EURJPY
USDJPY (I prefer EURJPY over this one)
GBPUSD
USDCAD
AUDUSD
NZDUSD
Attached File(s)
File Type: pdf 8-21-07.pdf   24 KB | 1,934 downloads
File Type: pdf 8-21-07 excel pips.pdf   12 KB | 1,579 downloads
  • #14
  • Aug 21, 2007 11:15am Aug 21, 2007 11:15am
1st post has been updated with tools in zip file.
  • #15
  • Aug 21, 2007 12:49pm Aug 21, 2007 12:49pm
personally i like more than 5 pips. cuz w/ 5 pips risk vs. reward ratio is not hi enuff for me. but if it works, then great. i added an EMA to give an idea about the overall bias of the mkt. if i have time, i will test this scalping FIRST in the favored direction of the EMA. also when the EMA cuts thru the channel - knda gives a hint that the action might be sideways so maybe can better trade both long and short with the channel as the extremes. just some thoughts...
Attached Image (click to enlarge)
Click to Enlarge Name: e j with j channel and ema.jpg Size: 43 KB
Attached File(s)
File Type: zip mod j channel and jpg.zip   195 KB | 1,871 downloads
  • #16
  • Aug 21, 2007 12:49pm Aug 21, 2007 12:49pm
how do i get the env(14) upper and lower on the data window? mine only displays the ej candle.

thx.
Let Go and Be Aware. See the Genius in Everybody. Live Beauty.
  • #17
  • Aug 21, 2007 12:59pm Aug 21, 2007 12:59pm
Quoting fx_ninja
personally i like more than 5 pips. cuz w/ 5 pips risk vs. reward ratio is not hi enuff for me. but if it works, then great. i added an EMA to give an idea about the overall bias of the mkt. if i have time, i will test this scalping FIRST in the favored direction of the EMA. also when the EMA cuts thru the channel - knda gives a hint that the action might be sideways so maybe can better trade both long and short with the channel as the extremes. just some thoughts...
The risk reward ratio with this system is shot all to hell anyway. The risk is unknown and endless.
The higher you set the profit target the deeper the drawdown.
I picked up about 100 pips this morning with it. I used very small lots.
Bear in mind that a trade could get away from you and eat up your account if you stick to the rules.
  • #18
  • Aug 21, 2007 1:00pm Aug 21, 2007 1:00pm
Quoting hu-man
how do i get the env(14) upper and lower on the data window? mine only displays the ej candle.

thx.
The envelope is a standard MT4 indicator.
  • #19
  • Aug 21, 2007 1:03pm Aug 21, 2007 1:03pm
Quoting hu-man
how do i get the env(14) upper and lower on the data window? mine only displays the ej candle.

thx.
In MT4 follow these steps:

Insert > indicators > Oscillators > Envelopes.

Leave all settings to default settings and hit ok. Now it should appear in the data window.
  • #20
  • Aug 21, 2007 1:06pm Aug 21, 2007 1:06pm
Quoting billbss
The risk reward ratio with this system is shot all to hell anyway. The risk is unknown and endless.
The higher you set the profit target the deeper the drawdown.
I picked up about 100 pips this morning with it. I used very small lots.
Bear in mind that a trade could get away from you and eat up your account if you stick to the rules.
All of this could possibly be true. Everything goes up & down. If you can get 100 pips+ /day, using smalllll lots and do not overleverage yourself, and short for modest monthly gains % wise, it may be a good system.

Greed kills.

But yes, if there could be a better risk protection "method" it may help the potential of this system.

When trading this system this morning, I think the maxium DD on a single pair was about 30 pips.
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