- Most Forex traders lose all their money.
- Using the robots posted here in trading Forex does not guarantee success.
- Trading these robots could lead to serious financial loss.
- Trading these robots without understanding their underlying trading strategies guarantees traders will lose their money.
- A trading robot is a maximum of 90% as good as the manual strategy it trades:
- just because the manual strategy is profitable does not guarantee the robot will replicate this success.
- for all I know, the strategy I have coded may be rubbish.
This robot is experimental and must not be used on live accounts.
The strategy this bot trades is inspired by comments in Nanningbob's V5 thread at http://www.forexfactory.com/showthre...95#post3913795. Newbies, do your self a favour. Bookmark my thread here for later reading, then go to Bob's thread and learn to trade. Time spent there is much better spent than here.
Some traders in Bob's thread have commented that, following a Bollinger Band squeeze if a new candle opens outside the bands, then the market is likely to continue in that direction for some time. There is an H4 GJ chart attached that illustrates this.
Identifying the 'squeeze'
In concept this is simple. Coding what is essentially a visual thingy into a piece of software is harder. I include some inputs to tell the robot what constitutes a squeeze:
- BbMaxSqueezeExtent is the maximum number of pips the robot will allow before a squeeze is no longer a squeeze.
- BbLookBackBars is the number of candles to look back to ascertain if the bands are being squeezed.
I have made a wild guess at the defaults. Refining these is an ongoing part of developing this robot. If we can arrive at reliable figures for each pair, then I can automate this.
The bot adds a visual aid by placing on the chart horizontal lines to define the extent of a squeeze, to reflect the inputs.
Other Bollinger Band inputs are defaults from Bob's trading system. You will need to make these and the BB indi inputs match up if your on-screen display will have the same readings as the indi.
Trade entry
At the beginning of each new candle the bot:
- looks for a squeeze
- if one is in place, sends the appropriate trade if the candle opens outside the bands
This makes for light processor usage. Leave the AlwaysDisplayBbValues input at its default of 'false' and it will only update the on-screen display at the start of each new candle.
Trade exit
- hits stop loss - this is the middle bollinger band at the time of sending the trade
- manual closing
- hitting the take profit
- new candle opens with the market back inside the bands
- mptm-managed jumping/trailing stop
In conclusion
I do not know if there is a best tf for this strategy. I do not know if this robot has any legs. We shall have to see.
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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 and Nanningbob's 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. I opened it for Nanningbob traders, but feel free to ask about this robot as well.
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.
