Per request from Steve Hopwood, I am starting a new thread to continue his work on the Shag'emAll EA. I came up with a similar idea in my studies, but used a slightly different approach. I built an MTF Channel indicator and noticed that price tends to move between different TF channels, rather than just sticking to one TF. The truth behind it is just harmonics rather than obeying specific TF's, but this indicator seems to define these harmonics fairly well. I have included the indy and the template to be placed on an M1 chart. From there, you will notice how all the different TF's work together. When price crosses a channel line, it will either reverse or go to another channel line. At times, it will reverse in "no man's land", but we will explore that as well.
Now the important thing to remember, is that this indy is not perfect. In fact, it will repaint the higher TF's, due to its nature as an MTF indy. As each TF finishes its "step", it will no longer repaint, but the repainting is also to our advantage, because price pushes it up/down giving us a better entry. Another important thing is to always use confirmation and also to work on a TF that will accomodate the spread, because the M1 and M5 TF's are practically impossible (although if you had 0 spread you could profit 100%). Even M15 can be tight at times. I prefer the M30 and H1, but the M15 and M5 can get you back into action when your trade hits BE. The last important thing are the center lines. You should either go to BE or TP at the center line. This is the best feature of this strategy.
Now we will be building an EA for this as we progress with manual testing if anybody's interested, mainly because this crazy, aggressive strategy can trade 24H, and news and the occasional stophunt could very well put some pips in our bank.
As we progress, things should become more clear. Now this strategy is in its infancy, so I will need your comments, questions, additions, and criticism (within reason of course), but let's keep the arguments down in the constructive zone.
Now for confirmation: I usually use a fast stochastic (2,2,1) for each TF, and when a certain TF channel is touched or breached, I will use that TF stoch for confirmation of the reverse. I am still undecided on whether to use the next lower TF stoch instead, as that can usually get us in trouble.
For rules: the highest/lowest line that was touched/breached is usually the predominant channel, although sometimes several channel lines will be at the same level. You can use the highest TF channel, but remember to use the stoch or whatever you prefer for confirmation. Sometimes it will not leave the OB/OS level and will continue up/down to an even higher TF, which is even better.
SL: Very tight with the M1 chart. You can set it at the high/low +- 10 pips + spread.
TP: The safest TP is the center line of the TF channel you're working with. The best plan is to either place 2 trades, with one TP at center, and the other will go to BE with hopes to hit the other side, or until the next reversal signal, or to scale out half of one trade at the center.
Anyway, place the indy in your folder and attach the template. Now without tick data, sometimes it will show erratic lines, so we might need to wait for the open market until we can fix that problem. Also keep in mind that sometimes price will come within a pip or two of the line. That is valid, because usually the line was there before price drove it up/down a little. There are also many interesting aspects of the system that we can find as we move along.
Until tomorrow...(it's time for bed)...
Now the important thing to remember, is that this indy is not perfect. In fact, it will repaint the higher TF's, due to its nature as an MTF indy. As each TF finishes its "step", it will no longer repaint, but the repainting is also to our advantage, because price pushes it up/down giving us a better entry. Another important thing is to always use confirmation and also to work on a TF that will accomodate the spread, because the M1 and M5 TF's are practically impossible (although if you had 0 spread you could profit 100%). Even M15 can be tight at times. I prefer the M30 and H1, but the M15 and M5 can get you back into action when your trade hits BE. The last important thing are the center lines. You should either go to BE or TP at the center line. This is the best feature of this strategy.
Now we will be building an EA for this as we progress with manual testing if anybody's interested, mainly because this crazy, aggressive strategy can trade 24H, and news and the occasional stophunt could very well put some pips in our bank.
As we progress, things should become more clear. Now this strategy is in its infancy, so I will need your comments, questions, additions, and criticism (within reason of course), but let's keep the arguments down in the constructive zone.
Now for confirmation: I usually use a fast stochastic (2,2,1) for each TF, and when a certain TF channel is touched or breached, I will use that TF stoch for confirmation of the reverse. I am still undecided on whether to use the next lower TF stoch instead, as that can usually get us in trouble.
For rules: the highest/lowest line that was touched/breached is usually the predominant channel, although sometimes several channel lines will be at the same level. You can use the highest TF channel, but remember to use the stoch or whatever you prefer for confirmation. Sometimes it will not leave the OB/OS level and will continue up/down to an even higher TF, which is even better.
SL: Very tight with the M1 chart. You can set it at the high/low +- 10 pips + spread.
TP: The safest TP is the center line of the TF channel you're working with. The best plan is to either place 2 trades, with one TP at center, and the other will go to BE with hopes to hit the other side, or until the next reversal signal, or to scale out half of one trade at the center.
Anyway, place the indy in your folder and attach the template. Now without tick data, sometimes it will show erratic lines, so we might need to wait for the open market until we can fix that problem. Also keep in mind that sometimes price will come within a pip or two of the line. That is valid, because usually the line was there before price drove it up/down a little. There are also many interesting aspects of the system that we can find as we move along.
Until tomorrow...(it's time for bed)...
Attached File(s)
