EA for this strategy has legs

Xivali came up with this strategy and I'd like to back test it with a little different spin with an EA. Manual backtesting shows good results. What makes this strategy work is that it cuts losses short and lets winners run. On a 15M (time frame adjustable)chart place a 50 Simple MA (high) and a 50 Simple MA (low) to form the channel. Buy the first candle that opens and closes above the channel. Close the trade the next time price closes inside the channel or hits the opposite channel wall, which ever comes first. Reverse strategy for sells. A filter that would not allow trades to open too far from the channel might be a good idea. See post #6. Please program so that trade doesn't initiate immediately after placing EA on the chart. Have it wait for the next channel crossing. Any takers for writing the code? thank you

Another chart. Cuts losses short but allows winners to run. Remember candle has to open and close above the channel to take a buy. Opposite for sells.

Won't you get drilled in a ranging market. Guess thats what the back test is for.

Right, I'd like to back test but from what I've seen manually testing, the long winners make up for the ranging trades.

Could be, you never know until you try.

It looks like it would be good to be able to filter out trades that would begin too far from the channel to protect against spikes.

And what about filtering out trades when the range is too narrow?

attached is a raw EA just for backtest. you need target price, without it, there will be many winner turn to loser

Thank you Sangmane, I appreciate it. Your're probably right about the target price.

Toothman,

One thing you could do is try to refine the entries. One possibility I can think of is wait to enter on a pullback and close above/below the MA. This would help filter out out some of the entries.

As for the targets, you could try using fib extensions as targets. One thing you could do is calculate the fib extensions by using the distance between the MAs as the 0 to 100 fib. Then just extend it out and try some different levels such as the 161.8, 261.8, 423.6 etc.

Hope these ideas spark some interest!

Any luck with the EA?