SAR system based on QQE Adv and MACD Platinum

Thank you David, sorry for late reply

your explanation is well elaborated, it not only fits my concepts but also completes them, thanks.

i do realise that my suggestion is just another 'wild guess'. i think that this raising-lots-in-win-streak expands a system's edge (positive or negative). if a system is a random loser (no edge either way), the system will lose much faster using my suggestion.

second to David, i really appreciate and feel amazed by your generous acts as well as Christina's efforts. it usually took me half a year to do one system, lol.

Happy 50! Wish you happy and health! I'd try your EA as a learning opportunity.

No worries charvo, thanks for taking the time to check the EA out and also thanks for the birthday wishes. Taking 6mths to come up with a system is probably a good thing as it would keep you focussed and on task throughout. My problem is that I come up with way too many ideas, as my mind is always ticking over, whether it be trading or other business type ideas, and therefore tend to jump around from idea to idea way too much. It doesn't help having a normal day job where I don't really have to think at all and work by myself the majority of the time..Cheers. Jim

Okay, now looking for ideas on ways to improve the current SAR EA. I'd imagine if Christina was reading this post, her eyes would be rolling back thinking, what will he have me doing next?

But I have had a couple of ideas in the last day or so as I have been just looking at the charts, mainly the 4hr, to try and see some sort of patterns when I place Hanover's custom indicator only on the chart. Go back to post #100 to see what I am talking about, but basically it is just a red or green arrow that coincides with the crosses of the MACD Platinum and QQE depending on what settings you elect to use. So I have put this indicator on the charts, and that's all that I am looking at, red and green arrows, nothing else.

One thing that seems to be consistent with settings like MACD 18,39,13 and QQE 2,12,5 is that once the arrow is painted, price normally goes in that direction if that trade is going to be a winner. The big losers also tend to go against you pretty well from the get go. I guess it all revolves around momentum. Keep in mind that the trade entry is on the open of the candle following the arrow candle. What I am thinking is is you placed a hard stop so many pips away from that arrow candle's high or low. For example if there was a new long signal and a green arrow presents itself on the chart, and then the EA would open a long trade on the open of the next candle. A stop could be then placed 10 pips below the low of the green arrow candle. It appears that the majority of the big winners won't even threaten this stop.

To take it a step further, if the trade was stopped out and the two indicators remained in buy mode, and price came back to the original entry point, then it would be nice to have a re-entry choice where the EA would pick up the original trade again, placing the same stop etc. Obviously there would be added losses that the EA would have to recalculate etc. Then there maybe a scenario where price keeps on bouncing between the entry and stop levels but the indicators remain long. Here you would need an input on the EA where you can limit the number of re-entries??

All of this is based on just looking at the EUR/USD 4hr chart using the above mentioned settings. So not sure how other time frames or pairs would fair. Look forward to other traders ideas and feedback on this. Overall it may be a way to cut the bigger loses out of the picture. Early days at the moment and more testing required. I may even knock up a quick video explaining it a little better. Cheers. Jim

Hi Jim,

Only found your thread today, but will spend time working through it as I like the way you think.

I hope you keep posting your ideas and thoughts.

regards,
Fred

Thanks Fred. Any feedback or ideas of your own that you would like to share, I would be keen to listen. I am in the process of just doing a bit of backtesting so I can modify the current EA with regards to a possible hard stop, break even point and also looking at re-entries. All will still be based on the same concept of recovering losses.

For anyone that is interested, I've been having some good test results on the 1hr timeframe. Have a look at the EUR/JPY with settings of MACD Plat 18,39,13 and QQE 2,12,5. Trade over the entire 24hrs and nil filter and nil target. Getting a nice return with manageable drawdown. But this is only a test and only based on a couple of years, even though it was across a few different platforms. EUR, AUD, GBP, A/JPY, EUR/AUD, GBP/AUD, GBP/NZD, CHF/JPY also all pretty good. CHF and GBP/JPY were both okay but bigger drawdowns. Just something to have a look at. Cheers. Jim

Hi, Buff:

3 days so far on 1H timeframe, NUDUSD, default, only several trades so far.

positive of coz, guess i should report once a month, lol

on 2nd thought, i should drag it on more pairs for demo......

charvo,

NUDUSD? Never heard of it. NZDUSD maybe? If it is, I found it just okay in testing without setting the world on fire. If you have a demo going, I would throw some of the other pairs on just to get a better feel for the EA, and also get a bit more action. Cheers. Jim

Jim,

.......I've been having some good test results on the 1hr timeframe. Have a look at the EUR/JPY with settings of MACD Plat 18,39,13 and QQE 2,12,5. Trade over the entire 24hrs and nil filter and nil target. Getting a nice return with manageable drawdown. But this is only a test and only based on a couple of years, even though it was across a few different platforms. EUR, AUD, GBP, A/JPY, EUR/AUD, GBP/AUD, GBP/NZD, CHF/JPY also all pretty good. CHF and GBP/JPY were both okay but bigger drawdowns. Just something to have a look at. Cheers. Jim

A couple of questions pls.

1. did you select the changed Indi settings based on optimisation or some other reason?
2. I ran the same test over both shorter and longer timeframes and it seems H1 gives the best result - again did you optimise for this timeframe?
3. overall have you settled on the H1 rather than the H4 or D1 - where you started this journey?
4. a question on your philosophy of closing sequences at BE - after a number of reversals, when the trade finally does move in your direction, why not let it ride a few more pips - at a larger lot size?

BTW I might catch you on the beach some day - location Brisbane.

regards, Fred

Fred,

I am still happy trading either the 4hr or daily charts using this method, but with these timeframes I am in a position where I can manually manage the trades by moving stops or even taking partial profits etc. Obviously I would then have to remove the EA from the charts and start afresh on the next signal if I interfere too much. Other than me making suggestions here, I can't give specific results on these higher timeframes due to the fact that everyone would manage the trades a little different. I still think this is the smarter way to trade, but probably not the most exciting way.

At the end of the day though where you couldn't manage the trades and were away from your platform, then yes, the 1hr timeframe seems to work the best with this EA. I was never looking at this timeframe, and was hoping that the EA would work well on the smaller timeframes like the 5m or 15m during particular trading sessions, using the trend of a higher timeframe and also looking for a specific target for that session. Probably haven't done enough testing here as not getting the results I had hoped for. Again, there is no reason why you couldn't manually manage the trades on the smaller timeframes if you had the time (or patience).

The different settings on the indicators came about as a result of feedback from a couple of the members on this forum. My default settings were pretty good I thought as they were the settings I had used for quite some time previously with some very good results on the daily charts. But I am willing to test different things, and I now find that the default settings plus about 50% give some even better results. The beauty about the EA is that you can test and test to your hearts content and find settings that you are happy with. Different pairs and different timeframes may all have their own sweet spot, but over time, this would change also, so I guess I am just looking for something that works pretty well most of the time on everything.

Point 4 has been brought up previously with me and it is something I have thought about. If the trend did continue in my favour, then if you were well into a sequence, you could make some huge profits. This would be much easier to do if you were manually managing the trades as you would have a much better feel for the overall trend just by looking at the charts etc. However with an EA, this would be difficult to code as you would have to consider some sort of built in stop or break even point. The problem is, where would you place this? Do you let it run past the break even point by 20 pips and then move the stop to the break even point or something similar? Then if price only goes 5 pips past your break even point and then reverses and wipes out for a big overall loss, you would be further in the hole on the next reversal. I am open to ideas on this subject, so feel free to suggest something that may work.

At the end of the day, I think I prefer the term semi-auto EA, where this EA will not miss an entry and will look after the trade/s for you, if for whatever reason you can't get back to your computer. But then there is nothing stopping you from taking over the management of the trade. Hope that all makes some sense.

And to digress, I consider myself a Brisbane boy. It was the first place my family moved to from Scotland when I was a 7 year old. Did all my schooling at Oxley Primary and High schools before joining the RAAF and moving to Wagga. Then back to Amberley, Newcastle then Darwin. Joined NT Police and spent time in Darwin, Groote Eylandt and Katherine. Transferred across to QLD Police in mid 90's and lived on the Gold Coast since. Come State of Origin, it is Queensland through and through, and also love the Qld Reds. Cheers. Jim

Hi Jim,

Re point 4, maybe I am missing something, but why not let the EA run on until the next reversal signal, at that time if in profit, close and re-enter in reverse at x1. It assumes there is enough profit to allow for the reversal to set up, but if not and its a loss, then situation normal, ramp it up and take a new position at x??.

Looking at some of the results running the EA in Strategy Tester, there are examples of 100+ pip moves after you closed out at BE and therefore you only enjoy x1, where you could have been in at x5.

Is there a switch in your EA to just let it run? It would be easy to implement and try it.

As for the Reds, understand your passion, though i am stuggling with the rules. Having moved to Bris from Melb about 3 years ago its still all a little foreign to me.

Fred

Hey Fred,

You know I have an EA called FRED. Just for your info....

Just being doing a bit of random manual backtesting on your previous idea about letting the EA run from signal to signal and disregard the break even point if it presents itself. I was mainly looking at some 4hr and 1hr charts. I found there was a bit of a trade off, even on this brief testing. When the profit does occur, it is normally quite spectacular and can run into the thousands of pips. The problem is that it normally requires many more positions to achieve that. Here margin requirements could become an issue. I found a couple of times, the sequence would have closed out on the 3rd or 4th trade if I was just looking for the overall break even point, however disregarding this break even point, the sequence could continue up to the 9th or 10th trade, where it did get a little ugly. But the idea may have some merit, so I'll add it to my wishlist I am currently compiling for Christina (my Programmer). I have a few other ideas bouncing around in my tiny brain that I am just trying to work out at the moment.

If you go to my website, I have 6x EAs listed on the front page. Three of these use the exact same indicators, the MACD Platinum and QQE Adv. Obviously this SAR EA is one the three, so no need to explain that one. The 2nd one is called LACW and is more of a traditional trend following system that just takes normal trades based on these indicators, and also has a few extra features built in like stop, take profit, b/e, trailling stop and money management. The final one is called JAGfx, which is another martingale type EA that also uses a grid. This EA also employs hedging when there is a reverse signal, and has the option of a 2nd hedge trade built in to reduce risk overall if the market skips away from you. The general idea on how it works is explained on my website under the 'Trading Ideas' tab. It is a little complicated to go into too much detail here. So there is plenty happening in my little world with endless testing. I have been a bit slack lately as I should be getting these EAs onto demo accounts and forward testing them etc. I have a fair bit of memory on my VPS, so might crank them up there to keep my computer free.

And as usual, if anyone would like a copy of any of these EAs, or have questions, or feedback, feel free to drop me a private email/message, or even better still, just post it here so everyone can see. Cheers. Jim.

Hey guys,

Just for your info, I've just started a demo account with Myfxbook which can be found at http://www.myfxbook.com/members/Accu...ud-demo/522945

Here I have thrown a few of my EAs onto the EUR/AUD pair only. This includes the SAR EA on the 1hr, with JAGfx, LACW and Mod MACD EAs all on the 4hr chart. Just concentrating on one pair for now so I can monitor it easily from my mobile devices. The plan is to watch and manually manage trades so there is an overall profit with minimal drawdown. Time will tell if I am on the right track. My thinking has always been, if I am going to martingale (or similar) then I have to hedge in some way. I have no problems taking losses along the way as long as overall I end up in profit without too much stress....cheers. Jim

I also like parabolic SAR.But I also use another two indicator with this SAR like Haiken Ashi and MACD.Combination of this three indicator give me fantastic result.

my demo is here, it contains multiple EAs, so look at only those trades with magic# 744xx,

I have the EA on 4 pairs with different magic#.

http://www.mt4i.com/users/charverk

the NZDUSD is on 0.8 lot now, not good looking.......

charvo,

Thanks for the link. Not really up to speed on MT4i, but it does look like it is doing okay. I sorted your magic number column so I could group all the closed SAR EA trades together. It appears that NZD trade you were concerned about has recovered nicely. Just trying to work out if these trades are on the 1hr charts? Is this correct?

manikah,

I think you may have missed the point on this thread as it really hasn't got anything to do with the Parabolic SAR indicator. But good to see you have a system that works for you. I think one of my older YouTube videos was on the Haiken Ashi, which is a pretty popular smoothing indicator amongst a lot of traders.

Cheers. Jim

yes, Jim, all on 1H charts, and NZD end up winning at 1.30 lotsize.

i'm wondering if using 4H/D1 timeframe might further reduce possibility of losing streak, will study it after a few more days demoing.

i used to calculate the possibilities of destructive streak by different win/lose ratio. for example, even if a system have a 70% winning ratio (assuming risk/reward = 1), the destructive streak of 7 or 8 consecutive losses are still very high. or in other words, within 100 trades, it might show up even twice!? sorry, i don't remember clear the number or value, but the impression was so. i'd go home to look up my spreadsheet after work, lol......

i expect to see your system evolving into an excellent semi-EA.

Hey charvo,

Sorry it has taken a few days to reply as went away for Easter.

I have played with the 4H/D1 timeframe filter setup with average results. Really didn't put much effort into it as I'm sure if I looked hard enough, I could probably come up with some settings that may work out okay. Do you want the 4hr or the Daily charts with the tighter settings, or keep them the same? So plenty of testing required.

With using the EA on the 4hr timeframe, it also lends itself to being easily monitored for manual intervention, which is pretty important to me. I do believe that the current backtesting results could be improved on, but having said that, you would probably end up getting out of trades that would end up being winners, and possibly cutting big losers into smaller losers etc. The only way of knowing how effective it would be to use it as a semi-auto EA would be to run forward tests on two of the same platforms simultaneously, one on full auto EA and the other as a semi-auto EA. Then if you and I were running the same tests, we would end up with different results again due to the fact that we would manage trades with different thinking.

All fun and games. So in a nutshell, this EA will get you into trades based on a pretty good signal generated by two technical indicators, where you can use a higher timeframe as a filter if you choose. Then if you left the trading to it's own desire's, as long as you are smart about your money management, the EA should keep you profitable long term. If you are in a position to manually monitor the trades, then you may wish to increase position size and just use the EA for entry. Plenty of options available. Just have to find that sweet spot that suits the individual trader. Cheers. Jim.

in the code it calls "PIP-F_MACD_Platinum" but I don't have it and used "MACD_Platinum" but I get in the Journal while in testing. Could you share the "PIP-F_MACD_Platinum" if different from "MACD_Platinum" and/or take a look at the code ?

thanks

LuisAY,

That's probably my fault as I have two versions of the same indicator and probably supplied my Programmer with different ones for each EA. I have attached both versions below. If there is a problem, please get back to me. Cheers. Jim