- Most Forex traders lose all their money.
- Using the robot posted here in trading Forex does not guarantee success.
- Trading this robot could lead to serious financial loss.
- Trading this robot without understanding its underlying trading strategies guarantees traders will lose their money.
- This is not a set-and-forget ea; there is no such thing and anyone who tries to claim there is, is either stupid or lying. This ea requires frequent manual intervention.
- To trade this robot, you have to understand basic support and resistance applied to Forex trading.
Introduction
Over in The Beast's thread at http://www.forexfactory.com/showthre...=1#post4135863, we have been looking at methods of trading out of the middle of the chart (visit the thread to read about all this).
slowkey posted this:
Originally Posted by slowkey http://www.forexfactory.com/images/buttons/viewpost.gif
I have been reading a book about a simple way to trade with emphasis on the 100 and 200 moving average. These are universally respected averages every body looks at. Basically anything north of the 100 is bullish movement and south of it is bearish movement. When price encounters the 100 it will either tear through,bounce or range. Price can also stall at the 200 or pass through for confirmation of trend.
- if the 100 MA > 200 MA, then the trend is up
- if the 100 MA < 200 MA, then the trend is down
I coded an EA to experiment with this. The EA has made an excellent start on demo and I have been developing it further.
The template places the two moving averages on your chart. Add this, then drag the ea onto the chart, make your input selections and sit back to watch.
The EA trades thus, taking a long trade as an example, so reverse the conditions for a sell:
- H1 chart.
- MA(100) is yellow; MA(200) is turquoise.
- Yellow is > turquoise.
- Bid is > yellow.
- Yellow line is rising.
- Previous candle was a riser.
- Market is no further than MaxDistanceFromFastMa pips away from the yellow line.
- Own choice of stop loss strategies - described below.
- Usual management features. These are from mptm, so ask for directions to it in the partner thread if you know nothing about this.
Note that you enter pip values as proper pips; the bot adjusts for x digit criminals.
Everything takes place at the start of a new candle (unless you are using the management features to manage an open trade or hedging has kicked in), so there is little damage done to the processor. The MA readings are only taken at the start of a new candle, so the fast ma will be out of date quickly.
There are a number of filters to help avoid over-trading, developed mostly in The Beast's thread. Readers unfamiliar with these will find details in TB's thread. Experienced users please note: these apply only to the initial trades and will be ignored when hedging kicks in.
Stop loss strategies
- straight stop loss set in the StopLoss input.
- UseChannel: initial stop is midway between the Yellow and Turquoise lines, then the ea will trail the stop at the yellow line once an hour when the trade is in profit.
- UseMaRecross: closes a losing trade following a recross of the MA's in the opposite trade's direction.
Hedging
For non-US traders, this is an alternative to stop losses:
- HedgeNotStopLoss: turns hedging on. The ea will hedge a losing trade at a recross of the MA's.
- HedgeLotsMultiplier: the multiplying Lot size factor for the hedge trade.
- HedgeTheHedge: tells the EA to re-hedge hedge trades following another MA recross. It will multiply the hedge trade's lot size by HedgeTheHedgeLotsMultiplier. This re-hedging will repeat every time the MA's recross.
- When a hedged position reaches breakeven, the bot will close the trades.
Take care with lot sizes and multipliers etc, to make sure they result in lot sizes acceptable to your criminal. There are no idiot checks.
Trade exit
All the above, plus a take profit. I hope that more sophisticated ones will emerge in this thread, especially use of jumping/trailing stops etc. We shall see.
Error messages
Ma will generate two errors frequently:
- Invalid stops: these occur when your stop loss is too close to the market price to be accepted by your criminal. Ignore them until Ma can finally send the trade.
- Trade context busy: MT4 is the most unmitigated, horrendous crap. A computer studies student presenting it as an examination project would fail the exam. Amongst the legion of things it lacks is any kind of instruction queuing system. When two instances of an ea try to send an instruction to the platform at the same time, or even nearlyat the same time, it hangs up its hat and goes on strike. There is nothing I can do about this, so live with it.
Thread rules
These are not onerous, so break them and I will ban you:
- Be constructive, friendly and helpful.
- You may be critical:
- You are allowed to say: "This will not work because......"
- You are not allowed to say: "This is lunacy and your are all cretins. Only dimwits trade lile this." Not twice, anyhow.
- Do not ask questions the answers to which are to be found in this post. This shows you cannot be bothered to read it properly and this annoys me. I tend to let my annoyance show.
In conclusion
I have no idea of this bot has legs. It has made a promising start on demo, so let's try it out and see.
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 to my restricted threads at http://www.forexfactory.com/showthre...66#post3948666
There, 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.
