Low Draw Down Fractal System

I didn't use iFractals because I already had coded a fractal channel indicator that does the same thing as this method, I tested a very similar method but with different stop type some time ago. I'll post the indicator + ea source later when I'm on computer where the stuff is.

I basically used the channel indicator that I had and every time when new fractal arrives = channel top/bottom changes, I delete all old pending orders (long or shorts based on which one of the channel sides changes) and then open new stops based on fractal.

Some code like position sizing is from my internal code library so it won't compile but you'll see the general logic and if you remove the position sizing, it should work.

btw using iFractal is just as easy as watching channel changes, just check if there is a fractal at current+3 bars at open. That basically means that you should add pending order at that exact level.

edit: looks like post #19 is quite similar to what I did except my channel does not repaint = the channel changes only after 2 bars have closed after the peak.

well after looking over eu myself, it does seem to be good stat. not all the pips in the world but definately a good addition to your current strats.

seems like it could be coded into ea pretty easy by some of you programming nerds huh? ( nerds - in a good way ) you know like revenge of the nerds - everyone loved them

if not, oh well, pretty easy to look at daily and punch in pending orders

i am already doing a daily strat on eu where you open position at open and close at close every day, this would just give me another entry

Here are the codes, first is indicator, next is EA.

Feel free to use indicator elsewhere if you feel like it. It's an "MTF" indicator so you can attach for example daily channel to hourly chart (pic below)

Unfortunately the ea code will not compile because as I said, it has links to my internal lib with lots of stuff that I'm not willing to disclose but it's not complicated to understand the code and modify it to work if you want to compile it by yourself.

edit: also added compiled version - it should work by just pasting it in experts folder.

edit2: Note that I'm using alpari data and timezone therefore the results in your test may be slightly different because different daily bar close time.

looks like you forgot to post mikko_lib.mqh

This is for other people who will ask the same question. I quote my post:

(I removed the position sizing from the EA before posting it here but posted the below in second post)

Hi All,

I did a manuel backtest on the EUR/USD.
I figured end of day at 17:00 New York time (EST)
Here are the results

2003 = 192 pips

2004 = 156 pips

2005 = 86 pips

2006 = 331 pips

2007 = 306 pips

2008 = 498 pips

2009 so far = 255 pips

There was a lot of give and take on this system with some good drawdowns,
but so far every year was positive. 2005 had twice as many trade as the second most year did with the smallest profit. Anyone else test anything?

When I have more time I will look farther back on EURO and look at other pairs.

Thanks Dreamliner, so far I like how simple this is for some side trades. This system is a long term deal. Look at it like social security, but might pay better.

AZ

This method seems to be similar to a very stripped down (using fractile only) version of the Bill Williams Alligator pile on strategy. It's very basis but can produce good results if you dont get too bogged down in the other indicators.

I have also found this system from playing around FSB, and it seems to be a good system to trade with.

I set my TP point at next bar high level from past 3 months history. What that means is that:

I enter when the price breaks previous fractual.

Then i look at the chart to find a higher price level which previous bars (up to 3 months using daily bars) have tried to reach but failed "the heads and legs of bars, not the body".

I set my TP 5 pips below that level for a long trade and 5 pips above for short.

I am now using this system to trade demo and it seems to work at a much higher %win ratio then the orginal system, although i do miss some big trades, i can take profit much more often and reduce loss from failures. I also set the SL at 1:1 ratio.

Maybe a mix between the two would be best. Would anyone be able to backtest this TP strategy? I find it hard to backtest it on FSB since there is no such options. Also, i am just a trader, i really dont know much about computer......

Hope this helps!!