Hi all, I am looking for someone who is generous enough to donate their time and skills to coding an EA to use for testing purposes. I have a strategy that warrants some further study and I think the best way is for me to explain the strategy and if someone could code it we could test it and see if it holds any weight. Here is the strategy:
Find an occurrence where 2 doji’s back to back (We want to have a bit of flexibility in the sense of defining a doji. From visual testing, it seems that doji’s where open=close are more important than those in which there is a tolerance where open-close<tolerance. However, I think that having the flexibility to define the doji in terms of tolerance may be worth testing as well). Straddle the range created by both doji’s combined with pending buy and sell orders (preferably with the ability to change the settings such that you can place order x pips away from the high and low of the range defined by both doji’s combined). When price breaks to one side and hits one of the pending orders delete the other order. Place stop loss on the other side of the range (preferably with the ability to place the stop loss x pips away from the low). For taking profit, I would imagine that several strategies need to be tested. First and foremost for me, the Reward to Risk ratio is most important. I want to ensure that the trade has positive expectancy meaning that the Reward to Risk ratio is greater than 1:1. In terms of risk, I would like the ability to set a % of the total account balance to risk on each trade (something like 2% but this can be a setting which could be changed). We use this % to calculate the lot sizing of the trade based on the stop loss which is defined by the range of the combined doji’s plus the tolerance.
One take profit strategy that should be tested is one where we define our TP as a multiple of our risk (we can have a setting in which we are able to place a multiple of the risk such as 2*risk). This strategy would ensure that we have positive expectancy.
A second take profit strategy that should be tested is one where we try to catch a runner. I’ve noticed that these setups can be explosive and we should try to take as much of the move as possible. This would involve some sort of trailing stop. If you have any ideas on the best way to use a trailing stop please feel free to discuss it and we could test it out. One idea I have is that we could have the stop move to breakeven when the trades reward to risk ratio is 1:1 and then continue to move the stop up as we approach new ratios. This would be something like move the stop to break even once the trade is up at an amount equal to our risk. As the trade progresses and becomes up by an amount equal to 2 times our risk we can move the stop to an amount equal to our risk. At this point we would be ensuring that we will gain at least 1 times our risk. As the trade moves up to an amount equal to 3 times our risk we can move the stop to an amount equal to 2 times our risk and so on. I’m sure there are other many other ideas out there so feel free to post your ideas.
We want the ability to trade this strategy across all time frames from the 15M and up all the way to the Monthly. I notice that the setup on time frames below the 15M may not be worth trading as we will get killed with spreads; although it may be worth testing anyway.
Also the occurrence of 2 doji’s forming back to back is rare on higher time frames but definitely more explosive than those on lower time frames for obvious reasons. We would also want the EA to constantly scan each time frame and several pairs for this double doji setup since the occurrence is rare. I think that it would be beneficial for the double doji setup to have some sort of box highlighting it for visual purposes when the EA is running.
I apologize for the length of the post and the size of the images but I hope they are sufficient enough to generate some interest. Thanks for taking a look and I hope I've generated some interest!
Here are a few charts:
Find an occurrence where 2 doji’s back to back (We want to have a bit of flexibility in the sense of defining a doji. From visual testing, it seems that doji’s where open=close are more important than those in which there is a tolerance where open-close<tolerance. However, I think that having the flexibility to define the doji in terms of tolerance may be worth testing as well). Straddle the range created by both doji’s combined with pending buy and sell orders (preferably with the ability to change the settings such that you can place order x pips away from the high and low of the range defined by both doji’s combined). When price breaks to one side and hits one of the pending orders delete the other order. Place stop loss on the other side of the range (preferably with the ability to place the stop loss x pips away from the low). For taking profit, I would imagine that several strategies need to be tested. First and foremost for me, the Reward to Risk ratio is most important. I want to ensure that the trade has positive expectancy meaning that the Reward to Risk ratio is greater than 1:1. In terms of risk, I would like the ability to set a % of the total account balance to risk on each trade (something like 2% but this can be a setting which could be changed). We use this % to calculate the lot sizing of the trade based on the stop loss which is defined by the range of the combined doji’s plus the tolerance.
One take profit strategy that should be tested is one where we define our TP as a multiple of our risk (we can have a setting in which we are able to place a multiple of the risk such as 2*risk). This strategy would ensure that we have positive expectancy.
A second take profit strategy that should be tested is one where we try to catch a runner. I’ve noticed that these setups can be explosive and we should try to take as much of the move as possible. This would involve some sort of trailing stop. If you have any ideas on the best way to use a trailing stop please feel free to discuss it and we could test it out. One idea I have is that we could have the stop move to breakeven when the trades reward to risk ratio is 1:1 and then continue to move the stop up as we approach new ratios. This would be something like move the stop to break even once the trade is up at an amount equal to our risk. As the trade progresses and becomes up by an amount equal to 2 times our risk we can move the stop to an amount equal to our risk. At this point we would be ensuring that we will gain at least 1 times our risk. As the trade moves up to an amount equal to 3 times our risk we can move the stop to an amount equal to 2 times our risk and so on. I’m sure there are other many other ideas out there so feel free to post your ideas.
We want the ability to trade this strategy across all time frames from the 15M and up all the way to the Monthly. I notice that the setup on time frames below the 15M may not be worth trading as we will get killed with spreads; although it may be worth testing anyway.
Also the occurrence of 2 doji’s forming back to back is rare on higher time frames but definitely more explosive than those on lower time frames for obvious reasons. We would also want the EA to constantly scan each time frame and several pairs for this double doji setup since the occurrence is rare. I think that it would be beneficial for the double doji setup to have some sort of box highlighting it for visual purposes when the EA is running.
I apologize for the length of the post and the size of the images but I hope they are sufficient enough to generate some interest. Thanks for taking a look and I hope I've generated some interest!
Here are a few charts:
Attached Image(s) (click to enlarge)
