DislikedIf I may make a suggestion for the SL TP level. Decide a threshold you would like to keep for the SL (say 10 pip). Now your initial SL is set according to the recent low/high - SL_threshold (as outlined in the original strategy). Set your TP level to the 2nd pivot sup/res. Now set a static variable to keep track of the % of the way you have made it up to the first pivot level. As your % progression towards your first pivot level increases, you tighten your SL. This tightening should be proportional so that when you hit the first pivot level, your SL is your SL_threshold below/above your first pivot level. This pretty closely follow the ideas behind the original strategy, while leaving a level of mental comfort with EA users that they are limiting their losses.
Another much simpler solution if your EA does indeed get very good entry signals, is to set the TP level for the first pivot level, and only enter the trade if you have a 1:2 risk:reward ratio.
Long: tp-Ask>2*(Ask-sl)
Short: Bid-tp>2*(sl-Bid)
Or something of that sort. This should limit you from those pesky trades that are "mid trend" due to the nature of the SL (using the lowest low in a given time period) that TheWicker originally implemented.
Just a few thoughts, I am not sure whether you can code them or not, but they don't seem too difficult.Ignored
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- May 29, 2008 6:49pm May 29, 2008 6:49pm
Inflation in things we need, Deflation in things we want.
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- May 31, 2008 2:27pm May 31, 2008 2:27pm
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- Jun 1, 2008 2:42pm Jun 1, 2008 2:42pm
Let God be true, and every other man be a liar