EAs under construction

If a strategy is good a robot should be able to trade it successfully,

Taking stress and impulsive and costly decisions out of the equation.

I, for one, am thankful for totally mechanical systems of trading.

The following strategy is under testing and doing exceptionally well.

With a little bit of luck and a lot of hard work from the coder the ea should be available within the next few days.

Here is the strategy as it is has been developing:

This is especially designed for 5 min time frame during the specified "windows" which is the 1 hour right after market openings. Tokyo, Frankfurt, London and NY.

The main trigger is the cross of 2 stochastics with 2 different setting. (They can be seen in the chart below and are superimposed on each other in the same window). These are regular stochastics graphically displayed as dots rather than lines. The change of color in the dots corresponds to stochastic lines crossing.
One setting is familiar (8,13,5)
The other setting is uncommon (21,12,5) which closely mimics the macd default (12,26,9)
Look for the 2 stochastics to cross each other coming out of overbought or oversold during certain windows of opportunity (within 1 hour after market opens). Both stochastics should be sloping in the same direction (hence the same color). The candle for the cross must close. Entry can be considered after that.
After they cross look for a confirmation candle to close above 8ema hi/lo channel. 8ema hi must also be sloping up for the candle that closed above the 8 ema hi. (for long). Enter on the open of the next candle after confirmation candle closes .
vice versa for short.

Click on the chart to zoom.
http://3.bp.blogspot.com/_oRGfurso7x...1600/cross.jpg

run on tester
all rules of strategy followed.
results +55 pips
click chart to zoom
http://2.bp.blogspot.com/_oRGfurso7x...00/cross+2.jpg

Looking forward to awesome EAs.

Cheers.

Victor

more tests
trading only during the window of opportunity is the advantage.
Signals at other times are not as reliable...

tests
+14 pips
Tokyo open

possible there is small window of opportunity between 1pm and 2pm Ny.
+7 pips.

me too

getting ready to test on live demo Tokyo open.

Frankfurt open, testing
trailing stop hit +2 pips

London open, test
trailing stop hit +7 pips
If 1st tgt is 20 pips this would get the 20 pips
2nd position to be hit by trailing stop +7...
So it would bring +27 pips

getting closer to Tokyo window... and forward test on demo.

the benefit of trading only during mkt opens is that there is increased trading activity which can sustain trends.
Tonight although the signal have all been confirmed the market is very very slow. No participation. So the benefit of market opens is not really there for this Tokyo open. Also the price action has been consolidating for the last 14 hours after a giant move up of almost 200 pips in 3 hours....
But to test the strategy which has up to this point very positive it must be tested on a variety of market conditions.
The condition tonight is not very favorable simply because the market is so very very slow.
So let's see what happens.
There are 3 open positions, 2 are being tested from another strategy...
But here's what the trading looks like..
The signals are reliable when there is volume and activity. Tonight is
There must be a way to filter out times when the market is just not active.
Or is caught in consolidation.

and here we are 2 hours later...
still flat and very very slow.
So we know when this begins to move it is going to move very quickly and in a big way...
The question is in which direction?
Since we are trading this manually as if it were a totally mechanical robot the entry was long.
Only the rules for the robot were considered.
So let's see what happens....

well here we are 4 hours later.
Probably will stay like this in a tight range until Europe opens.
And then woosh....
General trend is up. But maybe a big dip first.
There has to be a way for the ea to filter out these kinds of consolidations.
Maybe a "rate of trade" indicator. If there are less than a certain number of trades per minute, no entry?
Will research Bill Williams accelerator indicator. Not sure if it measures rate of trade. Not sure if anyone has put together such an indicator....
Could be interesting....

well here's what happened. Tgt was 20 pips
+20 pips

now we are in the next window, Frankfurt open.
looking for signals..

entry signals for Frankfurt

on the 1hr chart can see there is a lot of resistance to break through.

time to get a little more rest in between testing windows.
next window is US open, little less than 5 hours from now.
Will let this trade run. With the ea up and running there would be a trailing stop that would take effect just above break even. But we will just let it go as it is for testing purposes.
This is a demo and no stop is in place. Want to see how wide this can swing.
Looking good for a breakout.

okay it happened pretty quick target hit
+20 pips
with money management in the ea this might be the 1st target with a stop for the 2nd position now just above break even...

Now it's time to take rest until the next test US open, in 4 1/2 hours..
Yup this strategy is a winner...