Cannot Possibly Work? - another system from 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. There is every chance that his one is utter rubbish.
   
   1. just because the manual strategy is profitable (if indeed it is) does not guarantee the robot will replicate this success.

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Newbies, waste no more time here. Go straight to http://www.forexfactory.com/showthread.php?t=246113 and:

 

1. read post 1 several times
2. download the zip files, and read the documentation several times
3. read the first 20 pages or so of the thread. You can then skip to the last 20 or so to catch up with latest developments. Pay particular attention to nanningbob's posted charts and replies to questions

Until you have done this, you will not have any idea what is going on here. This thread is for NB-cognizant traders and I am not going to explain the Recovery system here. Frankly, when you have achieved a few successful demo trades using Bob's training, you will probably not want to return here. For sure, you will not need to.
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Ok guys; here is the genesis of the attached, which is an 95% auto-trading EA.

I wanted to practise using Recovery this weekend, so I used the vHands trading simulator (http://www.forexfactory.com/showthread.php?t=60849). I am beginning to think that this may be Bob's lasting gift to us all, over the next few years.

I took an H1 chart trading the psychotically-deranged GJ pair, and zoomed out so that the chart had a decent number of pips from top to bottom.

I sold at or near the top of the chart, closed the sell and bought at the bottom. When a trade went wrong because the markets continued in the wrong direction, I would wait for a brief retrace then pile in with the next level, using a 1.2.4 system where the 1 is the initial trade. In several hours of practice (many, many candles on the chart) I only hit L3 a few times and never saw dd greater than 10%.

Once into Recovery, I closed the trades at breakeven. This often left me bored, waiting for the price to achieve the outer reaches of the chart. Quite soon, I took to simply taking simultaneous buys and sells, closing the successful one at the edge of the chart and managing the remaining one to breakeven using Recovery.

I doubt this highly unscientific method would work in live trading, but I have heard worse ideas here at FF.

It did give me the idea for the attached. CPW works thus:

 

1. at just on, or about, the Sixths 3.6 middle white line, takes a buy and a sell - so you cannot use this with a criminal who does not allow hedging.
2. no stop loss (for now)
3. tp is the top gold line for a buy, bottom for a sell
4. draws the re-entry line at the middle white line
5. once one of the trades hits tp, goes into recovery mode and piles in with the L2 trade
6. from there, re-draws the re-entry line according to Max's pip values from NB auto-trader
7. performs Recovery from here as does NB robot

This is great in backtesting until the runaway trade occurs. At L4, the bot shuts up shop and we would then manage the trades as we have been taught to by Bob.

THIS IS AN EXPERIMENTAL EA AND MUST NOT BE USED ON LIVE ACCOUNTS

For CPW and Sixths to be displaying the same sets of figures, use the attached version of Sixths and make sure the BarCount of both are set to 120.

Let's play with this on demo for a few days and see if it might have any 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 thread 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.

Love the name, cannot possibly work. There was once a restaurant in Orlando Florida called Warm Beer and Lousy Food, the place was packed every weekend. Good luck, too bad I am working 80 hours a week right now. Would love to check out the hood and timing belt.

Good Morning Steve,
As the Java beans slowly do their stuff I'm studying what looks like a ton of fun. It should also prove to be a blood-pressure medication test as I finish reading.
And you are correct, a trial run of this puppy will be at the top of my list for this evening.
For all our benefits you should post what you have for breakfast and what is in the water over there in "Right Side Up Land".
Congratz this ought to be a barn burner.....

whip

HI Steve

it is funny, an idea similar to this has been buzzing in my head for the last few weeks. I was too terrified to mention it in FF in case my mentors would start laughing at me with comments Such as "Do not trade live account this Century", "at least demo trade a decade before using real money", etc.

I think you have something there and I hope it works in the long run. Only time will tell.

Kind Regards

Love the name, curiosity is always interesting.

Tell me, do you sleep at all ? or
Just get plugged into the wall for a couple of hours re-charging ?

SLEEP IS FOR HUMANS. I AM EPSILON MEGASTAR.

Hmmmmmmmmmm. Sorry. Strange, slightly surreal moment there.

Where was I? Oh yes. I have added a bit of screen feedback to the bot. It should give IBFX account victims a small smile. Nothing essential whatsoever, so ignore it if you can't be bothered with the re-download.

Hehe. Talk about the Law of Unintended Consequenses.

I wanted to test out the screen display on my IBFX account, so I dragged the bot onto a GJ chart.

Forgetting that I had a trend-following GJ trade outstanding from last week.

The bot leapt into life, took a Recovery trade, drew the requisite re-entry line and retired with a self-satisfied smirk.

Mind, the damn thing didn't reset the tp's of the two trades to breakeven, so there might be a bug there. It left me to do this for myself.

On the other hand, I now get to practise Recovery for real.

Bless my understanding of tiny lot sizes and their ability to refrain from killing accounts. It was hard-learned.

Hehehe. Some of the greatest things have been invented from ideas that "can't possibly work".

I'd just suggest that an emergency stop loss is definitely still needed. I learned the hard way back in 2008 that trading without stop losses can be pretty hard on the account and the heart! Not even NB's recovery system could have coped with that period in our history. We didn't get any retrace at all with pairs like GBPUSD until it had moved something like 1800 pips.

In most normal market conditions the recovery system will work great. An emergency stop loss that can be set at a figure that allows an attempt at recovery first before kicking in may be a good compromise.

Just my 2 cents.

CPW did well on demo last week. Not many trades, but the basic system worked.

I changed the code so that a touch of the middle line is sufficient to trigger the trade sends, rather than a cross; the cross did not always happen.

I am going to do some work on CPW and change the initial trade. Instead of instant hedged trades, it will send a single trade in the direction of current market movement. If this trade continues to tp, great. If not, CPW will hedge at x pips loss, and continue as before.