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Is This My Holy Grail EA :D

  • #601
  • Aug 14, 2008 6:56pm Aug 14, 2008 6:56pm
Quoting nanningbob
Go to the account history tab. Put your arrow anywhere on the results chart and right click. You will see several choices, click on custom period and choose what time period of results you wish to see. Then right click again and choose Save as Detailed Results. Choose a folder you wish to save the information to, I use desktop, and save. It will create two pieces of information. One is a graph chart and the other is every trade you made with percentages etc. This helps analyze your trading, what you doing right and what you are doing wrong.

Got it... thanks! This is a better picture than the balance screen shot that I posted...
Attached Image (click to enlarge)
Click to Enlarge Name: Grail EA 1.gif Size: 5 KB
  • #602
  • Aug 14, 2008 9:05pm Aug 14, 2008 9:05pm
Quoting jnevins
Bob,

I am having trouble seeing how to display a line chart of the acct balance as you are posting here.... Can you help?
Hi jnevins,

Here is what I do to post that graph:

** Select the "Account History" tab on your MT4 platform.

** Save as "Detailed Statement" and a browser window will open with the graph and details of your trades.

** Right click on the graph and choose "Save Picture As" from the menu.

** Save it in the folder of your choice.

** When you post here use the manage attachments (see pic below) button to browse to that folder and attach the file.

** Show us your great results!
Attached Image (click to enlarge)
Click to Enlarge Name: manage attachments.GIF Size: 77 KB
  • #603
  • Aug 14, 2008 9:59pm Aug 14, 2008 9:59pm
Hi jnevins,

i think you need to put with correct deposit amount to test this EA.

I notice you use USD 100,000 which for sure you will have very good results with this martingale type till you get the death trade. But in real are u willing to risk this amount?

Unless in cents, USD100,000 = USD1,000

so profit of USD7500 = USD75

NanningBob, you're the great teacher here.
did my thinking above correct?
  • #604
  • Aug 15, 2008 12:54am Aug 15, 2008 12:54am
Quoting MrForex123
Hi jnevins,

i think you need to put with correct deposit amount to test this EA.

I notice you use USD 100,000 which for sure you will have very good results with this martingale type till you get the death trade. But in real are u willing to risk this amount?

Unless in cents, USD100,000 = USD1,000

so profit of USD7500 = USD75

NanningBob, you're the great teacher here.
did my thinking above correct?
I wish I had a 100,000 to trade with, thats for sure. I use 3000 because that is more in line with the vast majority of traders who walk the hallowed grounds of Forex Factory. I think many here do not even have 3000 to invest with. I have tried hard to come up with a way to trade with 250 but so far no such luck.

As far as the figures go I dont remember what he traded with. If he is using 1.00 lots you would reduce it to .10 and it would be 750 and .01 would be 75. But it sure looks nice
  • #605
  • Aug 15, 2008 4:15am Aug 15, 2008 4:15am
Hi Bob
some questions:
We know that work with 19 pairs and an account of 3000 USD.
This means that you have available, on average, $ 158 for each pair, working with 0.01 = 1 cent.
I have an account from 10000 usd but I can not work on a cent but only a minimum 10 cents
So I need about 1600 USD per pair.
So I have to work with 6 couples.
The friend PistolDave works with 17 couples with $ 1.
To have the same relationship we want 272000 USD.
I think it is too risky.
Let me know what you think of this PistolDave:
You work with 19 couples, but I do not believe that, with all, you use the same setting.
Can you tell me, please, what couples use 50x40_1.8 and which uses 100x40_1.5?
I want to make a demo with these bases and then go to live after a period of testing.
I have much difficulty with the language, sorry.
Thank you
Romano
  • #606
  • Aug 15, 2008 9:20am Aug 15, 2008 9:20am
Quoting nanningbob
I wish I had a 100,000 to trade with, thats for sure. I use 3000 because that is more in line with the vast majority of traders who walk the hallowed grounds of Forex Factory. I think many here do not even have 3000 to invest with. I have tried hard to come up with a way to trade with 250 but so far no such luck.

As far as the figures go I dont remember what he traded with. If he is using 1.00 lots you would reduce it to .10 and it would be 750 and .01 would be 75. But it sure looks nice

Hi Bob, and group....

This demo of a 100k account is with FXDD and 100:1 leverage. The trade size is .1 lot. I am using the 100/40 1.5X EA in default mode. That would be the same risk as a 10,000 account trading .01 lots. I can dream a little while I am testing this system out, can't I? When ever I get to the point of using real money, it will be much more in line with Bob's suggestions.

The riskiest part of this system is starting with too big a lot size relative to the starting capital. It would be good to run an analysis of the risk of blowing up the account based on various ratios of starting capital: lot size. Would one ever have to fear a death trade with a .01 lot size and a 100k account??? What about a 10k acct? Are there any talented math wizards in the group that could run a statistical analysis on this? Would going to 15 levels make this system bullet proof? It should be possible to find the right relationship of account size to lot size at 1.5x increase in order to go 15 levels....The test is still cranking along nicely the account is up 10% in under 4 days....
Attached Image (click to enlarge)
Click to Enlarge Name: 100 40 1.5.gif Size: 5 KB
  • #607
  • Aug 15, 2008 9:24am Aug 15, 2008 9:24am
Quoting Romano
Hi Bob
some questions:
We know that work with 19 pairs and an account of 3000 USD.
This means that you have available, on average, $ 158 for each pair, working with 0.01 = 1 cent.
I have an account from 10000 usd but I can not work on a cent but only a minimum 10 cents
So I need about 1600 USD per pair.
So I have to work with 6 couples.
The friend PistolDave works with 17 couples with $ 1.
To have the same relationship we want 272000 USD.
I think it is too risky.
Let me know what you think of this PistolDave:
You work with 19 couples, but I do not believe that, with all, you use the same setting.
Can you tell me, please, what couples use 50x40_1.8 and which uses 100x40_1.5?
I want to make a demo with these bases and then go to live after a period of testing.
I have much difficulty with the language, sorry.
Thank you
Romano
If you go back to my test results using the 100/40 I successfully used dimes for almost 2 months without any serious problems. You are assuming each currency will go to its maximum and that is unrealistice. Demo it on 3000 and see how you do. I think you will be surprised at how small the margin usage is.
  • #608
  • Edited 11:37am Aug 15, 2008 11:28am | Edited 11:37am
Quoting nanningbob
If you go back to my test results using the 100/40 I successfully used dimes for almost 2 months without any serious problems. You are assuming each currency will go to its maximum and that is unrealistice. Demo it on 3000 and see how you do. I think you will be surprised at how small the margin usage is.
I agree, nanningbob.

To Romano:

I am trading with the default settings in the 50x40_1.8 EA.

I have not tried the 100x40_1.5 EA yet.

The normal lot sizes at most brokers (except for some other odd variations in their lot sizes) are:

Standard: $100,000 (1pip = $10.00)
Mini: $10,000 (1pip = $1.00)
Micro: $1000 (1pip = $.10)

The default lot size for the EA is: 1pip = $.10
(The setting in the EA is "lots=0.01")

Here is an example of the important information from a trade that shows the entry and exit and profit. I cleaned it up a bit to fit here, but the numbers are correct. Notice that the gain was 50 pips. (50pips x $.10) = $5.00
Using 100:1 leverage. $3000 account.

===================
Order #: 34477258
Entry: 2008.08.15 09:15 sell 0.01 gbpusd 1.8626
Exit: 2008.08.15 09:44 TP 1.8576
Profit: 5.00
===================

Using this setting and trading on 16 pairs simultaneously I have only had a max drawdown of 6.39% since I started using the EA. The equity curve has been generally uptrending. I am up about 26% for the week.

I don't expect anywhere near that kind of result in the long run. Maybe 2% or 3% is more reasonable to expect. If you try to force excessively high profits out of this EA you WILL blow out your account.

I do monitor the trades during the London and US sessions. I have had trades go against me once about 400 pips in GBPJPY. That was as much as I was willing to let it go against me so I closed it out with a loss of $40 or $50 (don't remember exactly) and I still ended up the day at only about a total of $100 or $125 drawdown, and I made that up the next day. Remember, these last few days have seen some unusually large moves in price.

I do think you should leave the EA alone as much as possible however, unless you start getting a huge drawdown in a pair that you really can't accept. You need to let it do its work.

Like nanningbob, I think you should close all open positions at the end of each trading day to avoid the death trade. You may have to close with a small loss for the day, but it's the price you have to pay for avoiding the death trade which results from staying on the wrong side of a trade for days hoping it will come back, and eventually blowing out your account.

You can tell by looking at the daily chart late in the US session whether the price is going to close in relation to the moving average most of the time. If there is any doubt about it, like if the price has been flat for several hours or going against me I will close out that trade even if I have several open positions in it. If it looks like it is still moving strongly ahead of the MA I will keep the positions open until the next day, if it doesn't look too risky. You have to use your judgement on that, and that comes with experience.

Again, learning when to "hold em" and when to "fold em" is the key to profitable trading. In my opinion, when used properly, this EA can make your job easier because it gives you a lot more room for error in your entries.

I am still in the learning phase with this trading system. And it is a system. As I said before, I am not interested in a "set and forget" system. I don't trust any EA that much. But as long as this one has been tested by nanningbob I think it is well worth a try.

Advice to anyone interested in this method: Demo trade for a reasonable period to learn how it works. And I don't mean just 2 or 3 weeks either. More. And keep your risk LOW LOW LOW!

nanningbob:

Please comment on what I have said here and let me know what you agree/disagree with.

Thanks,
PD
  • #609
  • Aug 15, 2008 2:44pm Aug 15, 2008 2:44pm
Quoting PistolDave
I agree, nanningbob.

To Romano:

I am trading with the default settings in the 50x40_1.8 EA.

I have not tried the 100x40_1.5 EA yet.

The normal lot sizes at most brokers (except for some other odd variations in their lot sizes) are:

Standard: $100,000 (1pip = $10.00)
Mini: $10,000 (1pip = $1.00)
Micro: $1000 (1pip = $.10)

The default lot size for the EA is: 1pip = $.10
(The setting in the EA is "lots=0.01")

Here is an example of the important information from a trade that shows the entry and exit and profit. I cleaned it up a bit to fit here, but the numbers are correct. Notice that the gain was 50 pips. (50pips x $.10) = $5.00
Using 100:1 leverage. $3000 account.

===================
Order #: 34477258
Entry: 2008.08.15 09:15 sell 0.01 gbpusd 1.8626
Exit: 2008.08.15 09:44 TP 1.8576
Profit: 5.00
===================

Using this setting and trading on 16 pairs simultaneously I have only had a max drawdown of 6.39% since I started using the EA. The equity curve has been generally uptrending. I am up about 26% for the week.

I don't expect anywhere near that kind of result in the long run. Maybe 2% or 3% is more reasonable to expect. If you try to force excessively high profits out of this EA you WILL blow out your account.

I do monitor the trades during the London and US sessions. I have had trades go against me once about 400 pips in GBPJPY. That was as much as I was willing to let it go against me so I closed it out with a loss of $40 or $50 (don't remember exactly) and I still ended up the day at only about a total of $100 or $125 drawdown, and I made that up the next day. Remember, these last few days have seen some unusually large moves in price.

I do think you should leave the EA alone as much as possible however, unless you start getting a huge drawdown in a pair that you really can't accept. You need to let it do its work.

Like nanningbob, I think you should close all open positions at the end of each trading day to avoid the death trade. You may have to close with a small loss for the day, but it's the price you have to pay for avoiding the death trade which results from staying on the wrong side of a trade for days hoping it will come back, and eventually blowing out your account.

You can tell by looking at the daily chart late in the US session whether the price is going to close in relation to the moving average most of the time. If there is any doubt about it, like if the price has been flat for several hours or going against me I will close out that trade even if I have several open positions in it. If it looks like it is still moving strongly ahead of the MA I will keep the positions open until the next day, if it doesn't look too risky. You have to use your judgement on that, and that comes with experience.

Again, learning when to "hold em" and when to "fold em" is the key to profitable trading. In my opinion, when used properly, this EA can make your job easier because it gives you a lot more room for error in your entries.

I am still in the learning phase with this trading system. And it is a system. As I said before, I am not interested in a "set and forget" system. I don't trust any EA that much. But as long as this one has been tested by nanningbob I think it is well worth a try.

Advice to anyone interested in this method: Demo trade for a reasonable period to learn how it works. And I don't mean just 2 or 3 weeks either. More. And keep your risk LOW LOW LOW!

nanningbob:

Please comment on what I have said here and let me know what you agree/disagree with.

Thanks,
PD
Yup, you clearly understand how this works. You caught on quickly.
  • #610
  • Aug 15, 2008 4:27pm Aug 15, 2008 4:27pm
Quoting nanningbob
Yup, you clearly understand how this works. You caught on quickly.

While I agree with Bob, that you did catch on pretty quick to the system he is put together. I have to ask, by using $100K. Ts this a valid test?

The reason I ask it this. After you verify the system does what you want it to do. Are you going to open a $100 Account and run the EA, and system as Bob has put together?

We have seen many EA, that appear to work with large numbers, but when someone opens up a smaller real account, they blew the account. I am not trying to be a naysayer here, just bring up a point of contention we have had in the past.

I love Bob's work; he has done an excellent job of putting this whole system together. He has done and Outstanding job of explaining it to all of us. AND he has shown more patience with us than most parents show with their kids.

It has to be that he is a father and a Teacher that gives him this ability.

I hope that once he goes live and has his modified EA running, that he does well!

I just hope that once all of us get the nerve to put the money on the line, with whatever we can afford, that we understand the risks, and rewards.

I know that my small account (mini, $208.16) will have to be carefully watched. And I hope I have learned from all of the pains that Bob has put out there for us to learn from.

Just my Two Cents.

Ken.

If you put your two cents worth in, but you only get a penny for your thoughts, where does the other penny go? (Food for thought)
  • #611
  • Aug 15, 2008 6:39pm Aug 15, 2008 6:39pm
Thanks Ken for your comments. I appreciate you hanging in there with me all these months. To the guy that can only run .10 a trade. I think you can use that amount if you dont trade the GBP/CHF and GBP/JPY. After taking a look at my small accounts ( trading 250) They consistently were the ones that pushed the EA to its limit. If I am going to trade smaller amounts of money or higher lot trades those two are the biggest troublemakers. The problem is they also are the two biggest profit makers. I am going to set up a demo this week and not trade those two and compare with a second demo that does to see the difference. If it is just a matter of making less money but having less trouble on a smaller account then the answer is obvious.

The other solution I am looking at is to give those two a wider range EA, like a 60/50. The 100/40 seems to work much better with those two because of the lower multiplication factor 1.5 versus the 1.8

My testing shows me the 50/40 is more profitable but also has a higher risk. Because it takes profit more often it usually runs a negative balance on the live trades. The 100/40 will run a positive balance more often but that is because many currencies will never get to the 100 TP line but will still show a profit. The 100/40 then is the more conservative but you can run higher lots. The 50/40 is more profitable but you have to monitor it more closely and the two GBP currencies can push it to its margin limits more often.
  • #612
  • Aug 15, 2008 6:55pm Aug 15, 2008 6:55pm
Using this setting and trading on 16 pairs simultaneously I have only had a max drawdown of 6.39% since I started using the EA. The equity curve has been generally uptrending. I am up about 26% for the week.

I don't expect anywhere near that kind of result in the long run. Maybe 2% or 3% is more reasonable to expect. If you try to force excessively high profits out of this EA you WILL blow out your account.

I have not tested the 50/40 over a long period of time but the 3 months of live testing the 100/40 the average per week was closer to 3-10% per week, 90-300 dollars. That doesnt set the world on fire but I dont know many investments that can do that. The problem is most traders have unreal expectations and want much more than that. They envision trading FT and quitting there jobs. That is very very hard to do. Imagine trading and your mortgage and electric bills aren't paid yet. The discipline to trade like that is unreal. However, if I think investment, vacation or payoff my credit card or car, then I think for the average person this is doable. I want to come home to the USA next summer for 2 months and I want to enjoy it, not watch every single penny. This is where trading comes in for me, so good steady money every week helps me reach my goal. 2-5% would do that. The weeks it does over 10% GREAT If you understand my expectations and what I am trying to accomplish within my job I have here, you will understand my motivation and why I am trying to make this work.
  • #613
  • Aug 17, 2008 3:20am Aug 17, 2008 3:20am
Quote
I am posting a chart with a 200 moving average (yellow line) and a purple line 225 above and below the 200 MA on a 1 hour chart. I would not turn on an EA with price this far from a median. The EA will put a sell on and the way this year has gone it may retrace 500 pips Monday and tuesday and you are in trouble. So wait until these currencies that are out of whack right now return to a more normal range. I think the 200 ema is a good benchmark. As far as I know the Eur/Usd had its second biggest move in 7 years this last Thurs. Friday.
Bob,
I visited your schools website and appreciate the spirit of your comment in the last post. Hope your forex research continues to be blessed and inspired to supplement your important project in Nanjing. I now teach computer graphics in Bahrain but am back in the USA for a vacation. My inspiration in the Forex is to get to a place where it supplements a move back to Ukraine, to teach there.

It's too bad your system using the Macd got blown away by the recent market moves, but better to know sooner than later. As you mentioned I wonder if running it on daily charts might be more successful.

I've set up my charts and will test the 100+40 with you. I've read your posts stating you just turn on and turn off with this system and don't use indicator guided intervention except in exits. In an earlier post (August 9) you noted the current extreme oversold state of many of the USD pairs. As you start the new live test will you turn on the expert with the USD pairs? If I understand correctly the 100+40 expert will enter based on price position relative to the 200 ma. So for the USD pairs it will trade in the direction of the over-extended trend. Or, will you leave these pairs turned off till a retrace takes their price back closer to the 200 ma median?

Thanks,

LeoM
  • #614
  • Aug 17, 2008 4:01am Aug 17, 2008 4:01am
Quoting Leomeister
Bob,
I visited your schools website and appreciate the spirit of your comment in the last post. Hope your forex research continues to be blessed and inspired to supplement your important project in Nanjing. I now teach computer graphics in Bahrain but am back in the USA for a vacation. My inspiration in the Forex is to get to a place where it supplements a move back to Ukraine, to teach there.

It's too bad your system using the Macd got blown away by the recent market moves, but better to know sooner than later. As you mentioned I wonder if running it on daily charts might be more successful.

I've set up my charts and will test the 100+40 with you. I've read your posts stating you just turn on and turn off with this system and don't use indicator guided intervention except in exits. In an earlier post (August 9) you noted the current extreme oversold state of many of the USD pairs. As you start the new live test will you turn on the expert with the USD pairs? If I understand correctly the 100+40 expert will enter based on price position relative to the 200 ma. So for the USD pairs it will trade in the direction of the over-extended trend. Or, will you leave these pairs turned off till a retrace takes their price back closer to the 200 ma median?

Thanks,

LeoM
NO it will only trade off the 1D trend. I only used that as a caution because price had moved so much a possible rebound could have happened and you would have been sitting on a sell. I dont think now there would be a problem. So far this year the 100/40 has survived just about everything that has been thrown at it but it has been an exceptional year. Price seems to be settling into its new habitat until the next big fundamental shift. I am glad the 1 Day based EAs caught the trend but the 4H got killed. I am a little sad because I thought I had something there. OH well, the 1 D trend has not failed this year yet so I feel pretty safe with it. It is just the 100/40 simply does not have enough room to operate with only 250 dollars. I am going to try the 50/40 but no GBP/CHF or GBP/JPY and see if that will work. Maybe the slower currencies can operate with the smaller margin. I dont know.

Many times all you hear is guys slamming their brokers but most of the MT4 brokers will just let you test and test and try on their demos. I know I appreciate IBFX letting me run up to 8 demos at once. I have learned a lot quickly doing that. I have also used other companies MT4s also so they are not the only one.

Funny you mentioned Ukraine, I have thought that whenever I get done with China I would like to do the English teaching thing there for one year. I think that would be cool but Russia whacking Georgia so badly makes me a little hesitant. Hopefully by then things will be a little more peaceful in that area of the world.
  • #615
  • Aug 17, 2008 8:01am Aug 17, 2008 8:01am
Sorry if you already mentioned it previously, but how do the daily experts determine the trend? By which side of a 200 lwma, correct?

About your previous experiment with the 4h + macd. If you send me the .mq4 files for the 4h and daily experts you've psted here, I might be able to combine the trade entry requirements. For example an entry would have to first meet the daily chart requirement and then the 4h for a trade to be initiated on a 4h chart. Maybe you've explored that option though...

I'm no wizard with the coding but have customized quite a few experts based on the 10p3 expert.

LeoM
  • #616
  • Aug 17, 2008 10:27am Aug 17, 2008 10:27am
Quoting Leomeister
Sorry if you already mentioned it previously, but how do the daily experts determine the trend? By which side of a 200 lwma, correct?

About your previous experiment with the 4h + macd. If you send me the .mq4 files for the 4h and daily experts you've psted here, I might be able to combine the trade entry requirements. For example an entry would have to first meet the daily chart requirement and then the 4h for a trade to be initiated on a 4h chart. Maybe you've explored that option though...

I'm no wizard with the coding but have customized quite a few experts based on the 10p3 expert.

LeoM
Ok you can. I think I tried it and it worked, just not as profitable as the One day only. Been a while. I think the only reason I didnt do a long term study was the daily only trend has just worked very well, however, to find something that will work with a small account it my be worth looking into.

Attached is the executable program that you can go in and play with it. It is kind of a mess with all the changes but I think you will be able to figure it out.

I am going to try using only currencies with less than a 5 pip spread. I think that will be eight pairs with IBFX and there will be no minor currencies, like CAD, NZD, AUD. I am just going to run the 5 majors. I will let you know how that works after a week.
Attached File(s)
File Type: mq4 tp 100 +40 D1.5.mq4   24 KB | 549 downloads
  • #617
  • Aug 17, 2008 10:31am Aug 17, 2008 10:31am
Sorry if you already mentioned it previously, but how do the daily experts determine the trend? By which side of a 200 lwma, correct?

I think someone did a study and the 200 EMA was the #1 used indicator in the world. Dont know how they did that but I guess it would be some survey of leading banks and brokers. I have never used it for trading but occasionally will look at it when prices have zoomed and I wait until they get close to it again before trading the pair. I just dont know how to react to something that is 3-700 pips out of range. Dont know if it will keep going, boomerang, or just float until it returns to the 200 MA range. So my knowledge is limited with that one.
  • #618
  • Aug 17, 2008 12:56pm Aug 17, 2008 12:56pm
I promised that I would have posted the results of my demo but, unfortunately, I can not do that because, inexplicably, does not save the file .... I do not know why, but it is so.
However, the demo is going well. You know that I work with 10 cents. (ActiveTrades brokers).
The demo has worked on these couples:
EURUSD, USDCHF, GBPUSD, USDJPY, GBPJPY.
He earned 1126.61 usd in the week, using 100 +40 and a base of 9000 U.S. dollars.
If live account did the same ............
I put on a new demo more aggressive starting this evening to market opening and next week I will tell you what he did.
Greetings to all and thank you very much to Bob
Romano
  • #619
  • Aug 17, 2008 4:09pm Aug 17, 2008 4:09pm
nanningbob,

I think you said before that you start the EA before the Asian session.

Is that because the previous day's close gives you an indication which direction the market will probably trend in for the next day? Or is that just the most convenient time for you?

Could you explain more about your reasoning for this choice?

Here is a related question...

I know that the 50x40 EA enters short if price is below the 1MA and long if above it on the daily chart. If the 1h chart shows a setup to go long, for example, will you still start the EA knowing that the price is going to enter a sell order because of the price on the daily? Or will you wait to enter the trades when price on the daily and 1h appear to be in agreement?

I'm sure you have seen many times where the price will flip above and below the 1MA for a while and depending on when you enter, could go either way.

--------------------

Another question for you concerning which EA to use:

Like you said earlier, the 50x40 will dig you into a hole quickly on the GBPJPY and the GBPCHF causing you to have to close out early because of the drawdown. What I'm considering is to run the 100x40 on the higher volatility pairs and the 50x40 on the more mellow ones.

How does that sound to you? Am I on the right track here or am I wasting time testing that?

I am attaching a file with the average day ranges for the last 5 and 20 days for the pairs I'm trading. You can see how I have them divided up and how I'm considering trading them. I'm also attaching the "7 year currency facts" you posted earlier for reference.

What do you think about using the 100x40 on the top group and the 50x40 on the bottom ones?

Thanks again for your advice.

PD
Attached File(s)
File Type: txt Forex currency pairs Average Daily Range - Aug 08-17-2008.txt   < 1 KB | 468 downloads
File Type: xls 7 year currency facts.xls   19 KB | 395 downloads
  • #620
  • Edited 6:47pm Aug 17, 2008 6:35pm | Edited 6:47pm
Quoting PistolDave
nanningbob,

I think you said before that you start the EA before the Asian session.

Is that because the previous day's close gives you an indication which direction the market will probably trend in for the next day? Or is that just the most convenient time for you?

Could you explain more about your reasoning for this choice?

Hmmmmmmm, Why I chose the JPY session, probably because it fits my lifestyle best, also it is the start of the new daily candle with IBFX. I have debated between it and just before the Euro session. Another is they are the more consistent of the sessions. USA is a wild ride. Price usually goes in one direction with the JPY and then goes the other during the Euro. Or the JPY is a retracement of the USA session and then the Euro will continue in the trend. IF the Euro is a change of direction it will have the retracement I need to get the EA to change direction. So for me I get up for work, turn on my EA, go to work, come home and close out if profit 5-8 pm (am EST). That is how I tested and based on my results I made adjustments. It seems to work so that is how it happened. No great scientific reason, just dumb luck I guess.

Here is a related question...

I know that the 50x40 EA enters short if price is below the 1MA and long if above it on the daily chart. If the 1h chart shows a setup to go long, for example, will you still start the EA knowing that the price is going to enter a sell order because of the price on the daily? Or will you wait to enter the trades when price on the daily and 1h appear to be in agreement?

The reason I developed an EA was my trading time is limited, I would miss trading setups and then I would force trades during my trading times. Obviously this led to disasters. So I let the EA do all my entering, TP, but I decide to close. Obviously, if you see a trading set up you should take it. You could manually trade it or reset the EA to trade off a 1H chart. The problem I had trading off a 1H chart was I am not around to always monitor the trade. So I did not do as well off of a 1H chart. As you are probably beginning to realize, I develop this EA around my lifestyle here in China. Probably not so good for people in the USA. However, you would turn it on, go to bed and in the morning close out your profit. I guess that could be kind of scary for most.

I'm sure you have seen many times where the price will flip above and below the 1MA for a while and depending on when you enter, could go either way.

A martingale works best in a sideways market. There is no possibility of a death trade then. It is when it takes off like the Euro, GBP, USD currencies did this last week that it has the most trouble. It is during these runs you make great profits or get killed. My belief is that on a 1Day chart there is a battle between the bears and bulls first before price will take off in a new direction, giving the EA time to get on the right side of these trades. For instance before price breaks the last major support line, like last week, the EA then is in the sell position and you are where you need to be on the trade. If price had done the opposite, break the last resistance line, the EA would be in the buy position. It was designed that way. So it does well in ranging and moving markets. Also closing down trades almost every day helps you in getting the EA in the right direction. This is why taking that occasional loss day helps you in not getting into the death trade. You wont be on the wrong side of a trade when price moves and breaks out of a range. This was the failure of the 4H system, I was looking for buys and then the bottom fell out. The 1D handles this situation much better.

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Another question for you concerning which EA to use:

Like you said earlier, the 50x40 will dig you into a hole quickly on the GBPJPY and the GBPCHF causing you to have to close out early because of the drawdown. What I'm considering is to run the 100x40 on the higher volatility pairs and the 50x40 on the more mellow ones.

How does that sound to you? Am I on the right track here or am I wasting time testing that?

I am thinking the same thing. Those two make the most profit but also will get into trouble more often. I am going to try trading with out them and see what happens.

I am attaching a file with the average day ranges for the last 5 and 20 days for the pairs I'm trading. You can see how I have them divided up and how I'm considering trading them. I'm also attaching the "7 year currency facts" you posted earlier for reference.

What do you think about using the 100x40 on the top group and the 50x40 on the bottom ones?

The EA was designed to handle almost any move a currency can make. Entering every 40 pips gives both of them the same range. The 50/40 takes profit more often and gets retracements better than the 100/40 but carries the 1.8 multiplication to make it profitable. The 100/40 has less TP and more of a chance of not handling a retracement but its multiplication is 1.5 so when in trouble it doesnt use as much margin and losses are not as great. Also when it TP on lower levels it is a bigger profit. So there is a give and take on each one. Demo testing live is the only way to find these things out.

Even though in trading ADR is a good source of info. for MM trading it doesnt help much because it is not the ADR that gives you problems it is the maximum daily moves that do. For instance the EUR/USD has moved almost 1600 pips in a week. ADR info does not help you during a run like that. Knowing its maximum move is around 350 in one day does. If I am 300 in the whole I know the run is done. I am looking for an exit. If I am still in the next day and it starts running again. I am out. I will hang in a trade with that info and look for my exit retracement during the next session. The GBP/JPY and GBP/CHF can have runs more than that. They are the ones that can be scary with their 5-800 pips runs in one day. The other currencies do this almost never, cant quite say never, so I like those odds.

Thanks again for your advice.

PD
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