My First Tradingsystem and EA

//+------------------------------------------------------------------+
//| EA #1                                                            |
//| =====                                                            |
//| Date  : 02.08.2008                                               |
//| Author: AdamP                                                    |
//+------------------------------------------------------------------+
#define MAGICNUMBER  01082008

extern double Lots               =  1.0;
extern double TakeProfit         =  80;
extern double StopLoss           =  60;


//+------------------------------------------------------------------+
//| Count open positions                                             |
//+------------------------------------------------------------------+
int CalculateCurrentOrders()
{
   int buys=0,sells=0;

   // Go through all orders
   for(int i=0;i<OrdersTotal();i++)
   {
      // We're only interested in trades that are in the trading pool
      // Closed or canceled orders are not interesting for us
      if(OrderSelect(i,SELECT_BY_POS,MODE_TRADES)==false) break;
      
      // Count positions that were opened by us for the current currency
      if(OrderSymbol()==Symbol() && OrderMagicNumber()==MAGICNUMBER)
      {
         if(OrderType()==OP_BUY)  buys++;
         if(OrderType()==OP_SELL) sells++;
      }
   }   

   // Return open positions
   if(buys>0) return(buys);
   else       return(-sells);
}


//+------------------------------------------------------------------+
//| Calculate optimal lot size                                       |
//+------------------------------------------------------------------+
double LotsOptimized()
{
   return(Lots);
}


//+------------------------------------------------------------------+
//| Check for bullish market conditions                              |
//+------------------------------------------------------------------+
bool isBullishMarket()
{
   // Calculate current and previous MACD and and current signal line
   double SignalCurrent=iMACD(NULL,PERIOD_D1,12,26,9,PRICE_CLOSE,MODE_SIGNAL,0);
   double MacdCurrent=iMACD(NULL,PERIOD_D1,12,26,9,PRICE_CLOSE,MODE_MAIN,0);
   double MacdPrevious=iMACD(NULL,PERIOD_D1,12,26,9,PRICE_CLOSE,MODE_MAIN,1);
   
   double RsiCurrent = iRSI(Symbol(),PERIOD_W1,14,PRICE_CLOSE,1);
   
   return ((RsiCurrent > 50.0) && (MacdPrevious < MacdCurrent) && (MacdCurrent > SignalCurrent));
}

//+------------------------------------------------------------------+
//| Check for bearish market conditions                              |
//+------------------------------------------------------------------+
bool isBearishMarket()
{
   // Calculate current and previous MACD and and current signal line
   double SignalCurrent=iMACD(NULL,PERIOD_D1,12,26,9,PRICE_CLOSE,MODE_SIGNAL,0);
   double MacdCurrent=iMACD(NULL,PERIOD_D1,12,26,9,PRICE_CLOSE,MODE_MAIN,0);
   double MacdPrevious=iMACD(NULL,PERIOD_D1,12,26,9,PRICE_CLOSE,MODE_MAIN,1);

   double RsiCurrent = iRSI(Symbol(),PERIOD_W1,14,PRICE_CLOSE,1);
      
   return ((RsiCurrent < 50.0) && (MacdPrevious > MacdCurrent) && (MacdCurrent < SignalCurrent));
}

//+------------------------------------------------------------------+
//| Check for open order conditions                                  |
//+------------------------------------------------------------------+
void CheckForOpen()
{
   double TP, SL;

   // Only trade on beginning of a new bar
   if (Volume[0] > 1) return;
   
   // Check for buy condition   
   if (isBullishMarket())
      OrderSend(Symbol(),OP_BUY,LotsOptimized(),Ask,3,Ask-StopLoss*Point,Ask+TakeProfit*Point,"",MAGICNUMBER,0,Green);

   // Check for sell condition   
   if (isBearishMarket())
      OrderSend(Symbol(),OP_SELL,LotsOptimized(),Bid,3,Bid+StopLoss*Point,Bid-TakeProfit*Point,"",MAGICNUMBER,0,Red);
}

//+------------------------------------------------------------------+
//| Start function                                                   |
//+------------------------------------------------------------------+
void start()
{
   // Make sure we have enough bars to work with and trading is
   // allowed for expert advisors
   if(Bars<100 || IsTradeAllowed()==false) return;
   
   // If we have no open position check for opening one
   if(CalculateCurrentOrders()==0) CheckForOpen();
}

Quoting adamp

Disliked

Hey guys!

Some keynotes:

1. Optimized for EURUSD
2. Using daily charts and weekly charts
   
3. Only 1 Position opened at the same time
4. Fixed TakeProfit and StopLoss
   

I have backtested it for the year 2008 and 2007 on the EURUSD chart.
But it's also possible to use it with other charts - in that case, you should change the TakeProfit and StopLoss variables.

The idea is quite simple. The following two indicators are used:

1. MACD (12,26,9)
   
2. RSI (14)

The following algorithm (oh, you call it trading system, right? ) is used:

1. Check if we have already a position opened -> yes? quit!
2. Check if we are at the beginning of a new bar (daily chart) -> no? quit!
3. Check wether we are in a bullish or a bearish trend

1. a bullish trend is indicated that way:
   1. the RSI signal of the current week's bar must be greater than 50, and
   2. the previous MACD daily value must be smaller than the current MACD daily value, and
   3. the current MACD daily value must be greater than the current MACD daily signal

2. a bearish trend is indicated the opposite direction:
   1. RSI signal of the current week must be smaller than 50, and
   2. the precvious MACD daily value must be greater than the current MACD daily value, and
   3. the current MACD daily value must be smaller than the current MACD daily signal

3. If we are in a bullish trend, buy with TakeProfit 80 and StopLoss 60, in a bearish trend sell with same TakeProfit and StopLoss

First attached picture is a backtest of the EURUSD from 1st of january 2008 until today with a starting budget of $10.000 and a lot size of 1.0, TP 80 and SL 60.

Second pictures demonstrates a buying and a selling signal. But this is not 100% correct, because the RSI shown is on a daily basis, while this EA checks the weekly values.

Edit: I am using a fixed lot size and no money or risk management at the moment.

Any comments welcome!

Ignored

//+------------------------------------------------------------------+
//| EA #1                                                            |
//| =====                                                            |
//| Date  : 03.08.2008                                               |
//| Author: AdamP                                                    |
//+------------------------------------------------------------------+
#define MAGICNUMBER  01082008

extern double Lots               =  1.0;
extern double TakeProfit         =  200;
extern double StopLoss           =  50;
extern int    FastMA             =  8;
extern int    SlowMA             =  14;
extern int    Signal             =  2;
extern int    RSIperiod          =  14;



//+------------------------------------------------------------------+
//| Count open positions                                             |
//+------------------------------------------------------------------+
int CalculateCurrentOrders()
{
   int buys=0,sells=0;

   // Go through all orders
   for(int i=0;i<OrdersTotal();i++)
   {
      // We're only interested in trades that are in the trading pool
      // Closed or canceled orders are not interesting for us
      if(OrderSelect(i,SELECT_BY_POS,MODE_TRADES)==false) break;
      
      // Count positions that were opened by us for the current currency
      if(OrderSymbol()==Symbol() && OrderMagicNumber()==MAGICNUMBER)
      {
         if(OrderType()==OP_BUY)  buys++;
         if(OrderType()==OP_SELL) sells++;
      }
   }   

   // Return open positions
   if(buys>0) return(buys);
   else       return(-sells);
}


//+------------------------------------------------------------------+
//| Calculate optimal lot size                                       |
//+------------------------------------------------------------------+
double LotsOptimized()
{
   return(Lots);
}


//+------------------------------------------------------------------+
//| Check for bullish market conditions                              |
//+------------------------------------------------------------------+
bool isBullishMarket()
{
   // Calculate current and previous MACD and and current signal line
   double SignalCurrent=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_SIGNAL,0);
   double MacdCurrent=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_MAIN,0);
   double MacdPrevious=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_MAIN,1);
   
   double RsiCurrent = iRSI(Symbol(),PERIOD_W1,RSIperiod,PRICE_CLOSE,1);
   
   return ((RsiCurrent > 50.0) &&  (MacdPrevious < MacdCurrent) && (MacdCurrent > SignalCurrent));
}

//+------------------------------------------------------------------+
//| Check for bearish market conditions                              |
//+------------------------------------------------------------------+
bool isBearishMarket()
{
   // Calculate current and previous MACD and and current signal line
   double SignalCurrent=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_SIGNAL,0);
   double MacdCurrent=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_MAIN,0);
   double MacdPrevious=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_MAIN,1);

   double RsiCurrent = iRSI(Symbol(),PERIOD_W1,RSIperiod,PRICE_CLOSE,1);
      
   return ((RsiCurrent < 50.0) && (MacdPrevious > MacdCurrent) && (MacdCurrent < SignalCurrent));
}

//+------------------------------------------------------------------+
//| Check for open order conditions                                  |
//+------------------------------------------------------------------+
void CheckForOpen()
{
   double TP, SL;

   // Only trade on beginning of a new bar
   if (Volume[0] > 1) return;
   
   // Check for buy condition   
   if (isBullishMarket())
      OrderSend(Symbol(),OP_BUY,LotsOptimized(),Ask,3,Ask-StopLoss*Point,Ask+TakeProfit*Point,"",MAGICNUMBER,0,Green);

   // Check for sell condition   
   if (isBearishMarket())
      OrderSend(Symbol(),OP_SELL,LotsOptimized(),Bid,3,Bid+StopLoss*Point,Bid-TakeProfit*Point,"",MAGICNUMBER,0,Red);
}

//+------------------------------------------------------------------+
//| Start function                                                   |
//+------------------------------------------------------------------+
void start()
{

   if (FastMA >= SlowMA) return (-1);

   // Make sure we have enough bars to work with and trading is
   // allowed for expert advisors
   if(Bars<100 || IsTradeAllowed()==false) return;
   
   // If we have no open position check for opening one
   if(CalculateCurrentOrders()==0) CheckForOpen();
}

Quoting adamp

Disliked

I have updated the EA a little bit. Have tested it with different MACD constants.
The optimum in a backtest of the year 2008 has been found with the following values:

1. MACD fast MA period: 8
2. MACD slow MA period: 14
3. MACD signal period: 2

Here's the altered code for those who want to try it for themselfs:

Inserted Code

//+------------------------------------------------------------------+
//| EA #1                                                            |
//| =====                                                            |
//| Date  : 03.08.2008                                               |
//| Author: AdamP                                                    |
//+------------------------------------------------------------------+
#define MAGICNUMBER  01082008
 
extern double Lots               =  1.0;
extern double TakeProfit         =  200;
extern double StopLoss           =  50;
extern int    FastMA             =  8;
extern int    SlowMA             =  14;
extern int    Signal             =  2;
extern int    RSIperiod          =  14;
 
 
 
//+------------------------------------------------------------------+
//| Count open positions                                             |
//+------------------------------------------------------------------+
int CalculateCurrentOrders()
{
   int buys=0,sells=0;
 
   // Go through all orders
   for(int i=0;i<OrdersTotal();i++)
   {
      // We're only interested in trades that are in the trading pool
      // Closed or canceled orders are not interesting for us
      if(OrderSelect(i,SELECT_BY_POS,MODE_TRADES)==false) break;
 
      // Count positions that were opened by us for the current currency
      if(OrderSymbol()==Symbol() && OrderMagicNumber()==MAGICNUMBER)
      {
         if(OrderType()==OP_BUY)  buys++;
         if(OrderType()==OP_SELL) sells++;
      }
   }   
 
   // Return open positions
   if(buys>0) return(buys);
   else       return(-sells);
}
 
 
//+------------------------------------------------------------------+
//| Calculate optimal lot size                                       |
//+------------------------------------------------------------------+
double LotsOptimized()
{
   return(Lots);
}
 
 
//+------------------------------------------------------------------+
//| Check for bullish market conditions                              |
//+------------------------------------------------------------------+
bool isBullishMarket()
{
   // Calculate current and previous MACD and and current signal line
   double SignalCurrent=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_SIGNAL,0);
   double MacdCurrent=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_MAIN,0);
   double MacdPrevious=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_MAIN,1);
 
   double RsiCurrent = iRSI(Symbol(),PERIOD_W1,RSIperiod,PRICE_CLOSE,1);
 
   return ((RsiCurrent > 50.0) &&  (MacdPrevious < MacdCurrent) && (MacdCurrent > SignalCurrent));
}
 
//+------------------------------------------------------------------+
//| Check for bearish market conditions                              |
//+------------------------------------------------------------------+
bool isBearishMarket()
{
   // Calculate current and previous MACD and and current signal line
   double SignalCurrent=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_SIGNAL,0);
   double MacdCurrent=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_MAIN,0);
   double MacdPrevious=iMACD(NULL,PERIOD_D1,FastMA,SlowMA,Signal,PRICE_CLOSE,MODE_MAIN,1);
 
   double RsiCurrent = iRSI(Symbol(),PERIOD_W1,RSIperiod,PRICE_CLOSE,1);
 
   return ((RsiCurrent < 50.0) && (MacdPrevious > MacdCurrent) && (MacdCurrent < SignalCurrent));
}
 
//+------------------------------------------------------------------+
//| Check for open order conditions                                  |
//+------------------------------------------------------------------+
void CheckForOpen()
{
   double TP, SL;
 
   // Only trade on beginning of a new bar
   if (Volume[0] > 1) return;
 
   // Check for buy condition   
   if (isBullishMarket())
      OrderSend(Symbol(),OP_BUY,LotsOptimized(),Ask,3,Ask-StopLoss*Point,Ask+TakeProfit*Point,"",MAGICNUMBER,0,Green);
 
   // Check for sell condition   
   if (isBearishMarket())
      OrderSend(Symbol(),OP_SELL,LotsOptimized(),Bid,3,Bid+StopLoss*Point,Bid-TakeProfit*Point,"",MAGICNUMBER,0,Red);
}
 
//+------------------------------------------------------------------+
//| Start function                                                   |
//+------------------------------------------------------------------+
void start()
{
 
   if (FastMA >= SlowMA) return (-1);
 
   // Make sure we have enough bars to work with and trading is
   // allowed for expert advisors
   if(Bars<100 || IsTradeAllowed()==false) return;
 
   // If we have no open position check for opening one
   if(CalculateCurrentOrders()==0) CheckForOpen();
}

I have changed the following variables:

1. TakeProfit: 200
2. StopLoss: 50
3. Lot size: 5.0

The result is nice: From 1st of january until today, the initial deposit of $10.000 would be nearly $100.000 (see attached picture)

Maybe I should add: if I do a backtest with the same values from january 2007 until today, then this EA would have halfed my bank account (stopped out at 50%)
With a lot size of 3.0 it would've been nearly $90.000 though...

Ignored

Quoting stopman

Disliked

AUD/USD "Aussie"
EUR/USD "Euro or fiber"
GBP/JPY "Geppy"
GBP/USD "Cable"
NZD/USD "Kiwi"
USD/CAD "Loonie"
USD/CHF "Swissy"
USD/JPY "Gopher"

Ignored

Quoting kopaszn

Disliked

Congratulation for the simple but effective expert! I am quit beginner (forex and even more in programming), but watching the tester in visual mode with the graph at the same time, it seems for me that this system tends to loose when market is nor bearish nor bullish or when it is bearish (EURUSD March 2005 to Oct 2005). It performs the best when the markets goes really bullish constantly. I was just thinking whether a 3rd group (nor bullish nor bearish) can be made, in which it would close the positions earlier (with less take profit). This would also help during the change from bullish to bearish vica versa.
Just an idea. What do you think?
Norbert

Ignored

Quoting fxxx

Disliked

very nice and informative thread
thx Adamp
i think many people will return to this thread 4 reference

Ignored

Quoting kopaszn

Disliked

http://www.chompalov.com/GMACD.mq4
This is a MACD indicator of strong, medium and weak signs of buy and sell, maybe you can use the strong trend lines from it, so It will enter when there is a strong trend in any direction.

Ignored