Meet Salma - trend line break trading by Steve Hopwood

SERIOUS WARNING

1. Most Forex traders lose all their money.
2. Using the robots posted here in trading Forex does not guarantee success.
3. Trading these robots could lead to serious financial loss.
4. Trading these robots without understanding their underlying trading strategies guarantees traders will lose their money.
5. A trading robot is a maximum of 90% as good as the manual strategy it trades:
   1. just because the manual strategy is profitable does not guarantee the robot will replicate this success. In this case, I am not even certain that the manual strategy will be profitable.
      

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This trading system complements two other major strategies:

 

1. Nanningbob's retrace, or counter-trend trading. Read about his method at http://www.forexfactory.com/showthread.php?t=246113. Look at the robots that Max and I are coding to trade the method at http://www.forexfactory.com/showthre...95#post3913795
2. David's system for trading the post-retrace, 2 leg bounce of a trendline. Read about David's method at http://www.forexfactory.com/showthread.php?t=244741. The robot I am coding for David's method is at http://www.forexfactory.com/showthre...56#post3976756.

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Ok, welcome to Salma. To read the genesis of her name and have a few laughs, go to http://www.forexfactory.com/showpost...&postcount=634.

Here is the trading system. I am quoting more-or-less verbatim from the pm that bluemele sent me to see if I am interested in coding an ea. This in turn is from the trader who sent the method to bluemele. My comments in italics.

 

1. I trade from 9 am to 7 pm on 15 min candlestick chart,
   1. this is Parisian time. I suggest you use trading times that accord with European time as they apply to your local time. These are Salma's defaults where I live.

2. At 8.45am, i draw trend line on eur/jpy ( at least 2 high or 2 low)
   1. I think this refers to 2 leg trend lines a la David. For new traders unsure about drawing them, read the attached pdf. The Word doc is available from David's thread; I merely copied it into Open Office and converted it to a pdf.

3. when a candle close outside, i go long or short.
4. I set my stop to the previous high or low,
5. i use a take profit for 50% of my position at the same distance as my stop, and i use manual trailing stop for the opther 50%.
   1. Salma draws a horizontal line for visual confirmation of the half-close point. You can adjust this by double-clicking the line to select it then moving it. Salma consults the price of the line when deciding it is time to half-close the trade.

6. 3 to 7 trade per week
7. i stick to this plan , and never break it.
8. The only quality you need to apply this system is rigour and patience.

So, simply make sure your lot size is divisible by 2.

This is not an auto-trader and is not suitable for newbies. Salma attempts to draw a rising and a falling trendline. It is then up to traders to adjust them in light of their trading experience. Remember to turn EA's off when adjusting the trendlines, to avoid triggering unwanted trades accidentally.

At the start of each new candle, Salma will work out whether the price has broken a trend line and the new candle has opened above the falling trend line or below the falling trend line:

 

1. falling trend lines are drawn from significant highs
2. rising trend lines are drawn from significant lows

Salma will not look for trades as soon as you drag her onto a chart. She will wait for the opening of the next candle; simply make sure you leave yourself sufficient time to make adjustments to the trend lines before the new candle opens.

THIS ROBOT IS EXPERIMENTAL AND MUST NOT BE USED ON LIVE ACCOUNTS

In offering Salma up here, I have two aims:

 

1. involve the brains of the experienced traders in developing the trading methodology
2. bug spotting by coders before markets open later today

If successful, this will give us a third option in our trend trading:

 

1. Bob's counter-trend, or retrace, trading
2. David's trend line bounce trading
3. Salma's trend line break trading

Let's see if this one has legs.



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Traders familiar with my work need read no further.

Posting restrictions
I have restricted the ability to post in this thread to: traders with at least 1 voucher; and traders on my 'buddy' list. I have done this because I do not want the thread cluttered with 'newbie' questions about the basics. New/inexperienced traders, this is not intended as a direct insult. What I want here is discussion with traders who fully understand what it is they are doing; when you newbs have been around a while, you will come to understand what a difference experience makes to the posts a member writes and shudder at the recollection of some of the questions you asked. I do. http://cdn.forexfactory.com/images/s..._the_floor.gif Go to your profile page; there is a link to the FF page that describes the voucher process.

Do not attempt to get around this by sending me pm's asking for help with your basic problems. Doing so will earn you an automatic ban from all of my threads.

I have set up a partner thread to this one at http://www.forexfactory.com/showthre...66#post3948666
Here, you can post the questions that you cannot post here, about anything you need to know. Someone with the knowledge and experience you need will answer.

Traders/coders with experience who have not yet been vouched for, can get around this restriction be being added to my 'buddy' list; all you have to do is pm me to ask me to do this.

Subscribed. I love trading TL breaks!
Cheers
CanuckCT

Wow Steve, that was fast!

You are a legend! Wow!

Or, is it you like being called a "Solution"? I forget...haha...

I am the provider of Executive, Non-Tactile, Multi-Level, Blue-Skies Inclusive, Conglomerative 24/7 Fiscal Solutions.

I just realised that there is a problem with:

5. i use a take profit for 50% of my position at the same distance as my stop, and i use manual trailing stop for the opther 50%.

My first thoughts were to use mptm to manage the trade to closure after this. Trouble is, mptm is not coded to kick in a trailing/jumping stop after a half-closure.

For now, the remainder of the trade needs managing manually or by a platform ts. I shall think about the solution.

The feet of the tutors. A good place to be.

Bless

haha. Salma.

I was being dim here again. All the mptm stop functions have the 'do after breakeven only', so there is not a problem.

Salma fired a trade as soon as I dragged her onto a chart - I had forgotten to include the line of code that tells her to wait for the start of the new candle.

This is fixes in post 1.

For those of you becoming more adventurous in dabbling with the code, simply add this line:

OldBars = Bars;

to init(), just underneath the line

Comment("..........................Waiting for the first tick");

then press F5 to recompile.

Salma is going to morph a bit later on today.

By happy chance, I had the trade-trigger logic wrong. As is, Salma can send, say, a sell trade at the touch of a rising trendline from below, rather that a break down through from above.

These rogue trades are looking good at the mo, so I am going to keep this feature to turn Salma into a trendline trading bot using both methods. She will close out an open trade if conditions arise that would cause her to send an opposite direction trade.