Trigger Bar Method (EURUSD 4,000 pips since 1/20/04)

As you can see, practically no drawdown. This graph trades a single pair: the EURUSD H1. I've looked at the entries on the backtest and they appear to enter exactly where I'd want them to. I guess there is always a chance the backtest is giving false results, but so far I am confident.

In the future, maybe we (the FF community) can find settings that work on multiple pairs.

At this time, I will distribute all source code freely until we have created a great product.

Maybe someone will download the EA and backtest 2001 - 2003 as well? I haven't been able to get H1 data for those years.

Here's the link to the EA thread:

http://www.forexfactory.com/showthre...ght=pipstalker

The absolute value of an hour candle's open - close is greater than the trigger value (say 50 for EUR/USD)

The price moves away from the close an arbitrary distance (say 40 pips)

A long and short are opened at the close of the hour candle in the previous sentence.

For EUR/USD, stoploss of 40 and take profit of 180 seem to work best. TP and SL are identical for both long and short.

That's all there is to it!

Mikhailthegreat observed that using a hedge is unnecessary and results in losing an extra 700 pips in broker commissions!!!! ($7000) The reason for this is that one of the two hedges will always be stopped out. The broker gets an extra 2 pips for each stopped straddle.... so 350 unnecessary trades X 2 pips is 700.

Mikhail, the problem is, the backtester always puts the entry at the open of the candlestick and not anywhere in the middle. The entries will most often come in the middle of the candle.

When backtesting with H1 data, the backtester won't put the entry anywhere in the middle of the H1 candle because it ignores the M1 data. Do you understand?

Mikhail helped me fix the straddle. The backtest is showing 4000 pips now at 90% MQ.

how about forward test? above 100 pips ?

Entries look good on the backtest chart... Here is a setup that look like the backtesting is accurate. The first circle is the trigger bar. The second circle show the price travelled 40 pips away from the trigger bar close. A straddle opened (+/- 40 pips) around the close of the second candle. The third circle shows the short straddle was taken, and consequently the long straddle was ignored.

The latest version of the EA takes commissions into account and removes the hedge. I posted it today on the other thread.... still up 4,000 pips!

I'd like to point out that if you look carefully at the graph in post one, you'll see it ends with an 800 pip drawdown. You can tell by the graph that the EA didn't earn any money in all of 2006.

Check it out at:

http://www.forexfactory.com/showpost...5&postcount=59

The author has requested that his thread be deleted, but I cannot do that, so I will close it and it will fall out of circulation.