Nanningbob 60x90 EA

Is it possible for any1 to help modify the 180x100 for 5 digits? It seems that the MA levels look different for my charts.

Any help is appreciated

I travel to Florida Wednesday and will set up my computer for trading for the summer here in the USA. I will try to get on then if someone doesnt do it sooner.

gotta go into the idicator levels and add a '0'... not to the MA portion jsut the levels

I want everyone to understand that this is my best guess about the new regs. Dont take this as factual because I maybe wrong but it is the only thing that makes sense. I talked to an IBFX rep and tried toread between the lines but according to them this is what they said,

In theory the FIFO rule will only work on the trades that have same lot sizes on the same pair.

So my theory is this, that there have been trade disputes between traders and brokers about the number of trades entered. If someone has a 3 lot trade entered but it shows up twice and that is not what he wanted there is a dispute that could be an error or a disreputable dealer thing. To prevent this type of dispute if you want to enter a second sell or buy on a trade you cannot use the same lot size. You will have to increase or decrease it to show you wanted this second trade. Now for my multi level system this will not affect your trading in or out as long as each entry is a different lot size. So if you like trading the same lots size and do multilevel trading you will have to trade 3.1 or 2.9 on the next trade. As long as the lot size is not the same you will be able to trade normally. This is my best guess. Maybe Iam right maybe I am wrong.

Florida in Summer???

BTW, I fired up the "4h 20ma 50x180x100 3l" on Sunday night on a 4 digit demo account. I followed your suggestions and set the account size to my live account size to get a real feel for the drawdown, etc. This is a very educational week so far.

I'm looking forward to one of the trades getting "in trouble" so I can trade out of it using the 242.

Well, finally made it here after reading the thread from first to last only to find Bob has deserted his post and gone on holiday!
Apprecite all the hard work and contributions that have gone into the thread so far - thanks all.
Time to fire up the demo a/c and get to grips with it.
Justin - thanks for recommending the thread, really appreciate it.

No prob. Keep up with the demo. U will like it. Made my first 208 LIVE pips with it last night.

I just would like to thank Bob and everyone over here.

I have a quick question regarding the 242 method, when we close the first level trade as a losing trade, will the EA close the other two levels automatically because it is programmed to do so? Or should we turn off the EA before closing the first level trade to prevent the EA from closing the other two levels?

Thanks again..

if planning on using 242 i would not take anychances with ea. just turn it off for that pair and do it yourself. The ea should open a new trade if you close that one out - I would think

I won't take the chance - ill just turn it off and do it manually

Yes if you leave the EA on it will close all the trades. You need to turn off the EA or remove it from the screen. I use a separate template that is set up for this. Same screen, different color, no EA; and then start using the 242 method for getting out of trouble. I have used this successfully 3 times now to get out of trouble and each time I have gotten better with it. Each trade had a smaller loss and one I ended up with a small profit. One trade I had to go 3 days before I got the retrace but the patience was worth it in that the next day I overcame the smaller loss and kept my account intact. Maks the profit curve look better than the occasional bigger loss that sometimes bug some of my trading systems.

At what point would you decide to turn off the 180x100 3L EA and switch to a 242 strategy? Since 3 levels in the 180x100 is considered to be within the normal range, how far past the third level do you call it a failure in need of recovery? Also, what direction do you choose for the 242 in this event?

e.g. My 180x100 EA went short 3 times as price went up through the 3 levels. Now price is continuing up and I'm getting worried. How far past this third level is "too far". If I try to initiate recovery with a 242 setup would I go short or long with it?

When you get to the range of a 4th level or a good support or resistance line is when I start my 242 system. I would turn off the EA, close out my 1st level trade so I only have 2 on the screen. I then manually enter the 3rd level at resistance if a sell or support if a buy. The 3rd level lot is the same as the remaining level which was the 2nd level but is now your first level trade. You are looking for a retrace that gets back to the third level entrance or what is now the 2nd level entrance. So if your first level is 1 lotand it goes against you 180 pips and now you have a 2nd level at 2 lots and a first level at 1 lot. Then it goes against you again so your third level is 4 lots. Now it goes against you again and you have gone another 180 or you have hit a S/R level near that point. You would remove the EA off the screen, close the 1st level trade, you are just going to take a loss there, and then enter a new 3rd level manually at 2 lots. Instead of martingaling it and going for the homer you just want out of the trade with as close to break even as possible. So the 2 lot trade finally reverses and gets back or near the entrance of the 4 lot trade. The 4 lot trade is now a 0 trade and the 3rd level 2 lot profit cancels out the deficit of the 1st level 2 lot and you have a near break even trade and the only loss you incure is the 1 st level trade you closed out. This lessens your losses greatly. If for some strange reason price continues to go against you to another level you would then take out the 1st level again as a loss, the 2 lot trade, and then enter a new 3rd level at 4 lots. You would try to ride this back to the 0 level so the previous 2 lot trade goes back to 0 and the 4 lot trade profit cancels out the 4 lot deficit. In this scenario levels 3-5 cancel each other out and the first two levels became losses. This is a far superior way to keep your account intact instead of betting it all on the martingale effect that you will retrace at some point for a profit but you are risking your entire account to get you out. At least this way you are always trying to 0 out your losing trade. Hopefully this is understandable.

At this point you are nearly a 1000 pips from your original entrance, which in the past was a total disaster trade and probably an account wipeout. Instead you took two losses and the other 3 were break even. You lick your wounds but you are free to trade another day. Also you can recover your losses much quicker trying to recoup 2 losing trades instead of a 5 level disaster of a close on 5 levels of losses. To me this finally solves the problem we have faced in a martingale setup. We take reasonable sound losses not spend our time praying, God turn this thing around for me. Much easier on the heart, ego, and emotions. We have a plan looking for a 20% retrace every 1000 pips. If price kept going against us we still keep going with the process of 2,4,2 until we get the turn around we want. A 1000 pip move without at least a 20% retrace at some point is an extremely rare event, I have only seen in last Oct. runs on just a couple of pairs. Stay away from interest rate news stories and I dont think you will ever face a 1000 pip run without a retrace. Of course if your trading gpb/jpy or gbp/nzd then you might face this once a year or so. Hopefull clear as mud.

I also find myself being much more confident in my trading because I have a plan. No matter what happens I now know my way out of a situation. As I see price go against me, I dont get this tight grip in my stomach like, oh no here we go again but a ok this trade is going to be a break even or a small loss, no big deal. AS LONG AS YOUR PLAYING LOTS WITHIN THE SAFETY OF YOUR MARGIN USAGE YOU ARE ALWAYS GOING TO BE SAFE. That is a big key to the 242 because if you are playing with too big of lots with the amount of margin you have you are screwed. I now know I can go 600 pips against me and still break even. -800 pips and I take a 1 level loss. This really boosts your trading confidence and you are more relaxed and you are not making any panic moves in your trading. This has really helped my trading immensely. My fear factor has gone way down since discovering this system. As I practice it a couple of more times I will probably add to my book this system of recovery.

Makes sense - or will when I've re-read it a few times.
Just one thing (and I'm sure it will be obvious when you point it out) - why is it called '242'?

2 lots then 4 lots then 2 and so on duh!!!! lol

Way to go JT

There is a reason I use this avatar!

LOL. I need one of those too.

I think I"m understanding your 242 strategy but want to make sure.
(a) L1 trade- 1 lot
( b) L2 trade- 2 lots
(c) L3 trade- 3 lots
When (c) opens and price continues against you another 180 pips or so, turn off the EA and close (a), wait for a resistance or support level, open another trade at 3 lots. Try to ride it back to entrance of (c). Is 3 lots the correct lot size for my manual trade in this situation?. Thanks much.
Oh, one more thing. Are you taking your profits at support /resistance or letting them go the full 100 pips?

You would open 2 lots for a break even. When the 3 lots reach 0 the 2-2lot trades would then cancel each other out the 2 profit would be equal to the 2 loss. Now if you still wanted to try to make a small profit you could use the 3 but you increase your risk if price continues against you. The purpose is to get out as close to break even as possible. But yes you have a good understanding of it. You could call yours the 233 or the way I would do it a 232. Hopefully this is understandable. The way I explain it the odd levels and the even levels would be the same size lots. So L1 and L3 would be 2 lots and L2 and L4 would be 3 lots. Then if things went bad L3 and L 5 would be back to 2 lots and so on. With this system you limit the amount of margin you will ever use with one currency pair. Once it reaches a certain point you are saying that is all the margin I am going to use. I close out 1 level and I am not increasing lot sizes anymore. This limits the amount of margin usage on any one trade. As I use this and understand this, yes I am still learning my own system, I like the self imposed limits and structure of my trading. To me this is really becoming the final key I have been missing in my EAs and trading systems. How to handle the bad trade. Now I know exactly what to do with them. I consider this the final piece to the puzzle of eliminating the death trade we have been working on since Dec. 2006 when we first started messing with the Martingale strategies. We ended up with a multi-level system with a specific point of getting out and eliminating the big damaging loss that we faced every now and then. I love it and I now approach trading with an extreme amount of confidence. If price goes against me 800 pips I now know I can handle it with a very small loss whereas in the past it was a potential disaster.

Under the new rules you could still use the same lot sizes with this because you still would be closing first in and first out on the trades.

I find S/R levels to be a good place to expect price to stop and turn rather than 180 pips away. That place could be 150 pips or 210 depending on the currency. You also can put pending orders and SL in each level and you wouldnt have to watch and wait for it to get there. If I see a trade go bad I usually wait for the end of the USA session because that is where it will form a R/S level. I then calculate a lot ratio that will bring my trade back to -0 and then try to get out by the Euro session. But that doesnt always work because many times the retrace will happen at the beginning of the Euro session like it is today for a eur/cad trade I am doing. I am only in 2 levels deep but it looks like a nice profitable trade for me today. I am going to let it run some and then take my profit later. Hopefully it will be a profit anyway. I leave in 6 hours for Florida so I wont be posting much today. Thursday I will finally be home for 3 weeksand be a tradin again. I have taken some long term trades using my sons computer but it is all manual trades. I dont have the EAs running at all since I cant monitor them as often.

Hi Bob,
I hope you are enjoying your holiday in the States.
Thanks for sharing this EA, it looks very promising indeed.
I have tried to modify the 180x100 3L EA to a 5 digit broker, but I think I may be missing something. It appers that I have about 60% of the charts running OK, with the trades starting where I believe they should.
But the rest seem to be taking on a trade well before the price gets to the first level green MA line, in fact the trades are being started right on the white MA(20) line.
Would you be so kind and please post the settings that you would expect to change to make the EA compatible with a 5 digit broker.
Thanking you
PipBear