Quest 100 System

This thread will be an ongoing effort to achieve 100 pips per day (500/week) through the development of an automated EA. Different techniques, indicators and methods will be used from EA to EA. Some indicators may be added, others dropped - all to help us get closer to our goal.

Goal: 100 pips per day (500/week)
Base Funds: $5000
Restrictions: Not to blow a $5000 for any given month for the past 12 months. $5000 account balance not to go below $4000 in any given testing month. Work on multiple pairs reliably.

This first post will be used to give important information such as direct links to the current version of EA and other important "quick reference" information.

TRADING STRATEGIES

DANGER ZONE: inside the 2 red dotted lines (+20/-20 level of 89SMA) next to the blue line (89SMA) - a lot of whipsaw goes on here as the market consolidates and tries to figure out which direction to go.

RECOMMENDATION: DO NOT ENTER a trade from inside the danger zone.

MIDDLE OF THE RIVER: In between the red dotted lines (+20/-20 level of 89SMA) and the outer bank of the river (+89/-89 level of 89SMA).

RECOMMENDATION: Although anything CAN happen, normally the trend is beginning to establish itself. Once you detect the trend is stable, you could enter the trade and exit near/outside the bank of the river it is headed to wards.

OUTSIDE THE RIVER BANKS: Outside the 2 brown lines (+89/-89 level of 89SMA).

RECOMMENDATION: I wouldn't trade while outside these levels but wait till the river comes back into the banks and crosses BOTH the +/-89 AND the 13EMA. Once it's on the other side the trend is fairly stable to continue.

EXCEPTION: If through other indicators, tools or trading expertise, you have determined that the trend has changed, you may enter a trade outside the banks and gain some additional pips.

13SMA "Aura"
Here's how to trade within the 13SMA Aura http://www.forexfactory.com/showpost...&postcount=209

Known INCOMPATIBLE Pair(s)
The following pair(s) are not compatible with this strategy or the EA.

EUR/GBP

Templates/Indicators

quest100v_1.3.tpl (Winding River)
quest100v_1.2gj.tpl (Winding River for GBP/JPY)
quest100v_1.2gold.tpl (Winding River for Gold)
i-Sessions pst.mq4 (visual Asia, London, USA sessions on chart)

Useful Information

Finding your Broker's offset from GMT: http://www.forexfactory.com/showpost...7&postcount=46
http://26z.net/v/132

Our first version of Quest100_v1.0 will be based on techniques using Fibonacci levels and SMA's.

I call it the Winding River method.

INDICATOR Setup:

15m chart (start off with USDJPY) NOTE: GBPJPY needs other settings that haven't been tested yet. The 4 majors work fine.

SMA 89 - Median Price - (blue) Levels +89 and -89 (heavier line - brown)
SMA 89 - Median Price - (color NONE) Levels +34 and -34 (I use dash for levels)
SMA 13 - Close (red)

Optional: i-session.mq4 (which displays the Asian, London and USA sessions)
Template: attached template (will need i-session.mq4)

SIGNAL Setup:

The SMA89 is our signal line. If the market goes ABOVE we BUY and BELOW we SELL.

STOP/TAKE PROFIT Setup:

The SMA13 is used as a guide for the StopLoss. Usually when the market is moving the candle does not fall further than 15 from the SMA13. Thus if we are in a BUY it would be the SMA13 plus 15, SELL SMA13 minus 15 (as a rule of thumb).

TakeProfit - Overflow of a bank would mean the SMA89 would be our goal. Crossing the SMA89 would mean the +89/-89 (outer banks) would be our goal.

Now as common sense would tell us, the SMA's are moving all the time. That's where an EA comes in to monitor them and adjust them till one is penetrated.


I've always known the power of Fibs and just out of curiosity I set a few Fib levels on a couple of SMA's and sure enough Fib's RULE!

The next few posts will describe in detail the strategies involved and how the market uses the SMA Fibs as support & resistance.

General Overview:

As you can see in this chart, the market moves from side to side. The SMA89 and it's 2 levels (+89 & -89 brown) keep it inside the river banks. Several times a month the banks will overflow and the market gets outside these boundary's. This is a PERFECT time to enter a trade in the REVERSE direction for some low risk pips. The market always gravitates trodes the middle of the river (SMA89).

The dashed lines are the +39 and -39 SMA act as support & resistance to a certain extent.

Now we know 3 things so far which can help in designing an EA to watch for certain conditions, reverse if necessary.

1) The market rarely goes outside the +89 & -89 boundary's
2) The market will gravitate toward the SMA89 center
3) Often the SMA 39 levels will indicate a consolidation or reversal condition as well as act as soft support & resistance

CLOSER LOOK:

The cart below is a typical example of how the SMA13 is a good guide for support & resistance and ideal for use as a basis for our StopLoss. In this chart as you can see, the candles never touched it. This is quite common when we just a little momentum to help drive the market. (don't forget we need to add a 15 pip padding to the SMA13 - sometimes a candle may penetrate the SMA13, but not close below it).

Quest100_v1.0 EA

I have already started developing an EA and with some good results just with the basic rules. I'll be adding some more logic which helps capture even more pips via other "get out if this happens" exit strategies.

Hopefully it should be ready for release in about 2 more days.

Neal

ATTACHMENT: This is the optional indicator that displays the Asian, London and USA sessions as background colors.

p.s. By the way - this setup of indicators has great value even if you aren't trading the system or using the EA. It may help you determine whether to get in/out of a trade or when is a good time to reverse.

Hi Neal,
Your strategy looks promising. Best of luck with the EA.
Cheers
CanuckCT

Okay Neal, I've followed you over to here now. Good luck with the new project!

Yep, your loyal subject has followed you over here as well.

This is going to be a must follow topic

the system looks great! just made 20 pips in my demo account after reading and setting the whole thing!

but i just wonder why it works so well with one pair only?? i tried it on several other pairs and although price does seem to respect these SMA's sometimes, it's not as common as in GBP/JPY....maybe it works with only the volatile pairs??

anyways yeah 1000 pips a day could be possible with this but there needs to be an EA which can assist us....i am anxiously waiting for it!

regards,
Ghous

Who developed this EA?

hi
well i am not sure if only i am having problem to downloading this template or other all fellows having the same problem? When i try to download this template or Indicator [just in this thread] it opens blank and downloads nothing.

regards

With the template - you would RIGHT CLICK on the link and say SAVE AS.

To answer someone else's question - I am working on the EA.

And welcome to the other followers that came to join us. Hopefully this will be the last thread since the name is generic and tied to a "goal" rather than an "indicator" - lol.

Neal

hey Neal can you let us know if this stratgey works on other GBP pairs, i tried it on a few like CAD, AUD, but it looks like a little mixed up, do you trade only the GBP/JPY??

great thread

how do you plan to overcome false signals which are big problem with MA in consolidation

Hi guys, sorry for my stupidity , but i did what suggested , but i cannot dowload the template

nither can I, and I guess there were some pictures on first two posts and I dont see them, well there is still descripition of system and I guess I will experiment with that

I believe that or admnistrator or the author bloked all....

it's a bug with ff right now. be patient and they should be back soon.

hi neal,
i am signing in late, nevertheless, this is your faithful follower reporting for duty.
welldone on all the hard work. best of luck on your quest.

Neal, just a couple of points. First, in your instructions, at one point you say:

"Now as common sense would tell us, the EMA's are moving all the time. That's where an EA comes in to monitor them and adjust them till one is penetrated."

... But nowhere do you indicate you are using EMA's, only SMA's. This is probably just a typo, so hopefully you can fix it ... Or you can point out how blind I am, since I don't see it.

More importantly, in a case where the price overflows the channel/river, your objective is the 89SMA, right? But what is the SL? Maybe you haven't decided yet?

And, one last question. You say buy or sell on the cross of the 89SMA. I presume you mean on the close of the candle crossing the 89SMA -- but you don't specify, so I thought I would ask. Maybe there could/should be a threshold beyond, so that a longer candle can get us in before the close? That's going to kill us in backtesting, but I'm already seeing, you know, 50 pip 15 minute candle breaks the 89SMA, and your system wouldn't have us jump in until it closes 40 pips beyond the trigger line... then it only continues 8 pips, only to reverse and stop us out with a loss. Same old story... I'm getting teary eyed just thinking about it :.

Thanks for your efforts.