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Daily Stochastic Oscillator System

  • #1
  • First Post: Edited Jan 13, 2008 12:00pm Jan 12, 2008 12:25pm | Edited Jan 13, 2008 12:00pm
Objective: To average 100 pips per day each week

Setup: 1hr chart with Stochastic Oscillator set at 7,3,3, Low/High, Simple

Pairs Traded: Figures below are for GBPJPY since it has the bigest swings - havent tested on others, their SL & TP would have to be adjusted.

Trade Execution: At the 9:00 GMT and 13:00 GMT each day place a buy/sell according to the location of the Stochastic.

If the Stoch is BELOW the signal level you would SELL, if above you would BUY.

For EA settings and performance results see next posting.

I would apprecieate any input on refining the process for more optimal results.
  • #2
  • Edited Jan 13, 2008 11:32am Jan 12, 2008 12:31pm | Edited Jan 13, 2008 11:32am
Latest Version: 1.1
Version Release Date: Jan 13, 2008

NOTE: This EA is for TESTING PURPOSES only and NOT to be traded on a live account.

I have attached a PILIMINARY EA which will handle a single session (London/USA) for testing purposes.

I think that we could improve our profit if some EA wizzard out there would like to add a Trailing Stop routine.

Also, I have attached an indicator that would probabbly be better than the Stoch to trigger a buy/sell but I'm not a savy enough programmer to figure out how to detect the levels. If the SHI indicator is UP prior to the entry time it would BUY... if DOWN it would SELL.

For backtesting period of 8/1/2007 through 12/31/2007 on GPB/JPY pair the results are:

PHP Code
 ==London===     =====USA=====
          v1.0   v1.1      v1.0    v1.1
          ==Settings=     ===Settings==
StopLoss      70    70        60      75
Stop2BE      n/a    70       n/a      90
TakeProfit   140   140       130     130
TrailStop    n/a   110       n/a      70
          ==Results==     ===Results===
Aug        8961   8961     10691    7319
Sep        8279   6963      1490    3172
Oct        3292   3912      5505    4599
Nov         -53   1872      1268    4183
Dec        1317   3222       911    2714
 
TOTAL     24933  33203     19062   30264
Attached File(s)
File Type: ex4 SHI_SilverTrendSig.ex4   4 KB | 1,547 downloads
File Type: mq4 Daily100_v1.1.mq4   5 KB | 1,515 downloads
  • #3
  • Edited 1:04pm Jan 12, 2008 12:54pm | Edited 1:04pm
GBPJPY Chart Sample:

(keep in mind that my broker is +2 GMT so 11:00 is 9:00 GMT and 15:00 is 13:00 GMT)
Attached Image (click to enlarge)
Click to Enlarge Name: 20080104-1.gif Size: 17 KB
  • #4
  • Jan 12, 2008 1:11pm Jan 12, 2008 1:11pm
If the Stoch is BELOW the signal level you would SELL, if above you would BUY.


Can you Explain little more about buy/sell signal please? which one is the buy signal and sell signal?


Thanks


Nagen
  • #5
  • Jan 12, 2008 1:33pm Jan 12, 2008 1:33pm
Quoting Nagen
If the Stoch is BELOW the signal level you would SELL, if above you would BUY.


Can you Explain little more about buy/sell signal please? which one is the buy signal and sell signal?


Thanks


Nagen
The BLUE line is your signal (in the above graph). When it below the red dotted line it indicates a SELL... when above the red dotted line it would be a BUY.
  • #6
  • Jan 12, 2008 1:39pm Jan 12, 2008 1:39pm
Do you close the 0900 position before opening the 1300 position?
  • #7
  • Jan 12, 2008 1:42pm Jan 12, 2008 1:42pm
Quoting billbss
Do you close the 0900 position before opening the 1300 position?
I didn't in testing - I only tested 1 session (London or USA) at a time - didn't test on both sessions in one trading day.
  • #8
  • Jan 12, 2008 1:44pm Jan 12, 2008 1:44pm
Quoting nealc99
I didn't in testing - I only tested 1 session (London or USA) at a time - didn't test on both sessions in one trading day.
Okay.
Did you close the trade at the end of the session or let it run until either SL or TP?
  • #9
  • Jan 12, 2008 1:46pm Jan 12, 2008 1:46pm
Quoting billbss
Okay.
Did you close the trade at the end of the session or let it run until either SL or TP?
Let it run till Stop Loss or Take Profit closed the trade. Usually since this is the heavy trading times, it only takes 2-3 hours at the most to hit one or the other.
  • #10
  • Edited 3:03pm Jan 12, 2008 2:44pm | Edited 3:03pm
There's is one small issue with your entry and the way show them in your picture! You show the stoch on the entrybar AFTER the bar has closed! The stoch should be on the bar before. The time stated on the bar you have marked on the chart is when the bar started. A bar the 15:00 marked bar.. started at 15:00 but ended at 15:59 and the stoch value on that bar is valid when the bar closed at 16:00 the same for the 11:00 bar.. the stochvalue you use should be that of the bar before the red highlighted...

Soo.. for your charts, if you would like to enter at 11:00 you look at the bar that started 10:00 and the value of that stoch when it closes at 11:00, the question is, do you get the same results? have your thinking been wrong? Don't worry, many has done that misstake with indicators.. especially stoch..including me..

Open you MT platform, look at the last bar you have.. se what time you get on that and look at your last ticktime..
Attached Image (click to enlarge)
Click to Enlarge Name: gdpusd4htest.gif Size: 36 KB
  • #11
  • Jan 12, 2008 3:04pm Jan 12, 2008 3:04pm
Quoting frankiev2
There's is one small issue with your entry and the way show them in your picture! You show the stoch on the entrybar AFTER the bar has closed! The stoch should be on the bar before. The time stated on the bar you have marked on the chart is when the bar started. A bar the 15:00 marked bar.. started at 15:00 but ended at 15:59 and the stoch value on that bar is valid when the bar closed at 16:00 the same for the 11:00 bar.. the stochvalue you use should be that of the bar before the red highlighted...

Soo.. for your charts, if you would like to enter at 11:00 you look at the bar that started 10:00 and the value of that stoch when it closes at 11:00, the question is, do you get the same results? have your thinking been wrong? Don't worry, many has done that misstake with indicators.. especially stoch..including me..

Open you MT platform, look at the last bar you have.. se what time you get on that and look at your last ticktime..
I caught that too. If you look at the charts it would change very few trades.
  • #12
  • Jan 12, 2008 3:32pm Jan 12, 2008 3:32pm
frankiev2,

Indicators are "guides" use for entry/exit recommendations. Sometimes they aren't always used the way the creator of the indicator intended.

Stoch was the best method I found on giving a reasonable indication of which direction (BUY/SELL) to go into the trade via automation.

I tried running it an hour before 13:00 GMT and an hour after and both wiped out the account.
  • #13
  • Jan 12, 2008 4:45pm Jan 12, 2008 4:45pm
Quoting nealc99
frankiev2,

Indicators are "guides" use for entry/exit recommendations. Sometimes they aren't always used the way the creator of the indicator intended.

Stoch was the best method I found on giving a reasonable indication of which direction (BUY/SELL) to go into the trade via automation.

I tried running it an hour before 13:00 GMT and an hour after and both wiped out the account.
What he is saying is that it is not accurate to look back on a chart and see the condition of the stochastic at the close of the 1300 bar and judge whether that would have been a trade. You have to look at the stochastic's condition on the close of the previous bar.
  • #14
  • Jan 12, 2008 5:09pm Jan 12, 2008 5:09pm
Quoting nealc99
Objective: To average 100 pips per day each week

Setup: 1hr chart with Stochastic Oscillator set at 7,3,3, Low/High, Simple

Pairs Traded: Figures below are for GBPJPY since it has the bigest swings - havent tested on others, their SL & TP would have to be adjusted.

===== London Session =======
Trade Entry Time: 9:00 GMT

Trade Execution: Each day at 11:00 GMT place a buy/sell according to the location of the Stochastic.

If the Stoch is BELOW the signal level you would SELL, if above you would BUY.


















Stop Loss: 70
Take Profit: 140 (Trailing Stop of 20 might improve performance)

===== USA Session =======
Trade Entry Time: 13:00 GMT
Stop Loss: 60
Take Profit: 130 (Trailing Stop of 20 might improve performance)

====== Backtesting Results =======
Testing Range - 8/1/2007 through 12/31/2007

Market: London
Proft: $21,799
Absolute Drawdown: $615
(FIRST Image below)

Market: USA
Profit: $16,604
Absolute Drawdown: $285
(SECOND image below)

=================

I would apprecieate any input on refining the process for more optimal results.

Hi:

I have a day job 8 - 6pm, can I use this setup, will the EA help me, please explain.
Thanks
Zee
ZHK
  • #15
  • Jan 12, 2008 5:33pm Jan 12, 2008 5:33pm
Quoting zhkzhk
Hi:

I have a day job 8 - 6pm, can I use this setup, will the EA help me, please explain.
Thanks
Zee
At this point the EA is for TESTING PURPOSES only and NOT to be traded on a live account.

Perhaps in a few weeks once it is refined it may be possible.
  • #16
  • Edited 3:46pm Jan 13, 2008 11:32am | Edited 3:46pm
Version update: v1.2
Release Date: Jan 13, 2008

Lots of changes from v1.0 to v1.2, many of them produce significant improvement in performance and reducing whipsaw of monthly profit (i.e. one month being high and the next month low or even negative).

==== ADDED FEATURES ====
Stop2BE - when number of pips is reached it will set the S/L to break even
TrailStop - AFTER Stop2BE has been reached it will begin looking for the number of pips set here and start excuting a trailing stop.
CloseOrdersDaily - if TRUE it will close all orders at 00:00 according to your broker's time (I added this but performence was less if set to TRUE)
MoneyManagement - (off by default) Allows the EA to scale your SPEND/BUY amounts according to the set RISK factor and the balance of your account

==== PERFORMANCE INCREASE ====
v1.2 has been tuned to have better performance than v1.0

For backtesting period of 8/1/2007 through 12/31/2007 on GPB/JPY pair the results are:

PHP Code
 ==London===     =====USA=====
          v1.0   v1.2      v1.0    v1.2
          ==Settings=     ===Settings==
StopLoss      70    70        60      75
Stop2BE      n/a    70       n/a      90
TakeProfit   140   140       130     130
TrailStop    n/a   110       n/a      70
          ==Results==     ===Results===
Aug        8961   8961     10691    7319
Sep        8279   6963      1490    3172
Oct        3292   3912      5505    4599
Nov         -53   1872      1268    4183
Dec        1317   3222       911    2714
 
TOTAL     24933  33203     19062   20264
Attached below are the LONDON and USA performance charts for GBP/JPY for 8/1/2007 through 12/31/2007 (as well as the EA itself):
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 09-asian.gif Size: 6 KB
Click to Enlarge Name: 13-usa.gif Size: 6 KB
Attached File(s)
File Type: mq4 Daily100_v1.2.mq4   6 KB | 1,129 downloads
  • #17
  • Jan 13, 2008 5:27pm Jan 13, 2008 5:27pm
It's easy to trade multiple sessions with the existing setup, just open this EA on two separate charts and give each a different magic number. That way, one EA trades the London on one chart, and the other EA trades the New York on the other.
  • #18
  • Jan 13, 2008 6:36pm Jan 13, 2008 6:36pm
Quoting Ronald Raygun
It's easy to trade multiple sessions with the existing setup, just open this EA on two separate charts and give each a different magic number. That way, one EA trades the London on one chart, and the other EA trades the New York on the other.
Correct. I thought about doing that and then I thought about combining the two sessions into one EA.
  • #19
  • Jan 14, 2008 2:00pm Jan 14, 2008 2:00pm
your going to need another indicator to help screen fakes because a lot of fakes appear.
  • #20
  • Jan 14, 2008 6:10pm Jan 14, 2008 6:10pm
In the process of doing just that.

Most likely will be switching indicators to one that has less lag and better performance.

Will test a few days before releasing a new EA.

It is the Solar Winds indicator (attached).
Attached File(s)
File Type: mq4 Solar_Winds_alert.mq4   3 KB | 826 downloads
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