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Fish Net System Version 2

  • #1
  • First Post: Edited Aug 29, 2013 4:23pm Aug 2, 2013 2:55pm | Edited Aug 29, 2013 4:23pm

Fish Net System Version 2.


It is a long term trading system. You only need to spend 0 to 5 minutes a day depending on how market does. Trading only GBPUSD and EURUSD.

Rules:

1.Open your daily chart, look back last three months, we choose 70 bars back. Find out the highest price hPrice and lowest price lPrice.
2.So market is ranging between hPrice and lPrice. PriceRange=hPrice-lPrice.
3.Divide PriceRange + 300 pips into 10 equal levels: TenthRange=(PriceRange +300)/10. Then we will have 11 price levels, l1,l2,l3,l4,l5,l6,l7,l8,l9,l10,l11 from top to bottom.
4.At each price level, we place pending buy and sell orders. It could be stop or limit orders depending on where market is. Our base lot is 1 lot. For buy orders lot size factor is as follow: 1,1,1,3,3,3,6,6,6,9,9 from top to bottom. For sell orders just reverse 9,9,6,6,6,3,3,3,1,1,1. Or choose whatever factor you want but have to be in above increase order.
5.No stop loss.
6.For buy orders (including level6) are above level6 use bigger value from 100 pips or TenthRange. If you have more than one buy order opened, take profit target is average price + 100 pips. Average price need to factor in lot size. For buy orders below level6, level6 price is take profit target.
7.For sell orders (including level6) are below level6 use bigger value from 100 pips or tenth value. If you have more than one sell order opened, take profit target is average price - 100 pips. For sell orders above level6, level6 price is take profit target.
8.If market goes beyond level1 or level11 after daily closed, delete all pending orders. Place new pending orders according to above rules and adjust your take profits with new set of level price for existing opened orders if any.
9.Every time an order closed, refill order with pending order at the same price level. You will always have 22 opened and pending orders on.
10.It will always have drawdown, especially when market go from level6 to level1 or level11 or beyond. So choose your base lot size wisely and make sure you have enough margins to sustain big drawdown.


Only constructive comments welcome and no indicator talks.



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http://www.myfxbook.com/members/xlit...alprime/640592






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A Fabulous EA done by RolfW.


http://www.forexfactory.com/showthre...17#post6875417


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Updated EA




http://www.forexfactory.com/showthre...03#post6919003


Attached File(s)
File Type: mq4 Grid EA v3.5.mq4   14 KB | 524 downloads | Uploaded Aug 26, 2013 12:38pm
File Type: mq4 Grid EA v3.7.mq4   15 KB | 619 downloads | Uploaded Aug 28, 2013 9:53pm
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  • #2
  • Edited 3:13pm Aug 2, 2013 3:01pm | Edited 3:13pm
lol, sitting in my sofa, carry on, dude, my eyes are on you!

my first idea is should we put one more exit logic?

when the floating profit is @ say, 5% or 10%. close all positions (and pending orders), and restart the whole thing.

(everytime i feel deep pain when i see my floating 20%+ turning 0...... )

or not 5% , 10%, but when floating profit > 2 X margin used, things like that.
  • #3
  • Aug 3, 2013 12:18am Aug 3, 2013 12:18am
1. Not understand the number 6 & 7. What do you mean by "use bigger value from 100 pips or TenthRange"? Because of the distant between the orders are not big enough? But you have already set accordingly as mention in number 3.

2. Average price is the net asset value of opened positions?

3. Refer to number 4 (Lot size factor), How does the system earn money if price move from somewhere to level 1 or 11, because the losing positions' lot size become bigger than winning position's lot size?
  • #4
  • Aug 3, 2013 12:35am Aug 3, 2013 12:35am
Quoting ~bull.bear~
1. Not understand the number 6 & 7. What do you mean by "use bigger value from 100 pips or TenthRange"? Because of the distant between the orders are not big enough? But you have already set accordingly as mention in number 3. 2. Average price is the net asset value of opened positions? 3. Refer to number 4 (Lot size factor), How does the system earn money if price move from somewhere to level 1 or 11, because the losing positions' lot size become bigger than winning position's lot size?
6 & 7 Say tenthrange is 80 pips, then your take profit you will use 100 pips. if Tenthrange is 120 pips, then take profit is 120 instead of 100 pips.
Average price = (order1lotsize * openprice1 + order2lotsize * openprice2)/(order1lotsize + order2lotsize). for just tow orders. etc.

When price goes beyond level1 and level11, then we have big drawdown, we need patient to wait for market retrace toward level6. Check your daily chart market more likely go back to level6 soon or later. remeber level6 is daynamic as well. It is a long term system, your balance and equity will increase while market going through cycles.
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  • #5
  • Aug 3, 2013 1:13am Aug 3, 2013 1:13am
Quoting xlitang
{quote} 6 & 7 Say tenthrange is 80 pips, then your take profit you will use 100 pips. if Tenthrange is 120 pips, then take profit is 120 instead of 100 pips.
I think you confuse me. But i understand what it means. As long as Tenthrange is less than 100 pips, then the take profit distant must be 100 pips, so it will be Average price + 100 pips. If Tenthrange is more than 100 pips, then the take profit is Average price + Tenthrange.

But i don't understand why you say this "For buy orders (including level6) are above level6" and "For sell orders (including level6) are below level6".
  • #6
  • Edited 7:47am Aug 3, 2013 7:33am | Edited 7:47am
Quoting ~bull.bear~
{quote} I think you confuse me. But i understand what it means. As long as Tenthrange is less than 100 pips, then the take profit distant must be 100 pips, so it will be Average price + 100 pips. If Tenthrange is more than 100 pips, then the take profit is Average price + Tenthrange. But i don't understand why you say this "For buy orders (including level6) are above level6" and "For sell orders (including level6) are below level6".
For buy orders below level6 and sell orders above level6 I would wait for market to go back to level6 to take profit to maximize profit potential. Image when your big lot position take profit at price level6, how much profit you would bank. That is what I mean long term trading.

http://www.myfxbook.com/members/xlit...tsystem/650144

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  • #7
  • Aug 3, 2013 8:32am Aug 3, 2013 8:32am
Where do you mark level 1 and level 11?

Is level 1 at the H + 150 pips?
Is Level 11 at the L - 150 pips?
  • #8
  • Aug 3, 2013 8:59am Aug 3, 2013 8:59am
Quoting billbss
Where do you mark level 1 and level 11? Is level 1 at the H + 150 pips? Is Level 11 at the L - 150 pips?
You are correct.


http://widgets.myfxbook.com/widgets/640592/medium.jpg

http://www.myfxbook.com/members/xlit...alprime/640592
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  • #9
  • Aug 3, 2013 9:12am Aug 3, 2013 9:12am
Quoting charvo
lol, sitting in my sofa, carry on, dude, my eyes are on you! my first idea is should we put one more exit logic? when the floating profit is @ say, 5% or 10%. close all positions (and pending orders), and restart the whole thing. (everytime i feel deep pain when i see my floating 20%+ turning 0...... ) or not 5% , 10%, but when floating profit > 2 X margin used, things like that.
I hear you. But think about it when you can bank $2000 instead of $200.
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  • #10
  • Aug 3, 2013 10:11am Aug 3, 2013 10:11am
Hi xlitang, first thanks for sharing your ideas !

I have two simple questions :

1- In this 'grid' system, the worst case is when price goes above level1 or below level11 ? That is 70 days range + 300 pips. Must be statistically verified for the pair we choose, what do you think of it ?

For example if the price goes straight from central level to the upper level, it would have triggered : Buys : 3, 3, 3, 1, 1, 1 and Sells 3, 6, 6, 6, 9, 9 so the net opened lots are 27 sells ?

2- Is there a need to refill the orders when triggered ?

Thanks !
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  • #11
  • Aug 3, 2013 11:14am Aug 3, 2013 11:14am
Quoting FxGunner
Hi xlitang, first thanks for sharing your ideas ! I have two simple questions : 1- In this 'grid' system, the worst case is when price goes above level1 or below level11 ? That is 70 days range + 300 pips. Must be statistically verified for the pair we choose, what do you think of it ? For example if the price goes straight from central level to the upper level, it would have triggered : Buys : 3, 3, 3, 1, 1, 1 and Sells 3, 6, 6, 6, 9, 9 so the net opened lots are 27 sells ? 2- Is there a need to refill the orders when triggered ? Thanks !

No, only when order is closed ( hit profit target), then you will refill orders with pending orders.
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  • #12
  • Aug 4, 2013 10:33am Aug 4, 2013 10:33am
Hello and thanks for sharing your trading system.

question- if you are placing a buy and sell order at all 11 levels, Am I correct in saying that you could have both buy and sell orders triggered (at one level or more) due to market oscillations? and would this not be called hedging. If I am correct in the above, then USA traders would not be able to use this system because hedging is not allowed in usa. I am assuming that I am understanding the system and if I have this wrong please help me understand what I am missing. thanks
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  • #13
  • Aug 4, 2013 7:42pm Aug 4, 2013 7:42pm
Hi xlitang,

You don't need to place any orders at level 6 as they will just cancel each other out anyway.

e.g. sell stop 0.03 + buy limit 0.03 = 0.00 lot exposure

EDIT: I'm wrong, it will be 0.00 exposure, until one of those orders hit TP


Also, thanks! This will be a fun thing to experiment with : )
  • #14
  • Aug 4, 2013 7:58pm Aug 4, 2013 7:58pm
Quoting iamsovereign
Hello and thanks for sharing your trading system. question- if you are placing a buy and sell order at all 11 levels, Am I correct in saying that you could have both buy and sell orders triggered (at one level or more) due to market oscillations? and would this not be called hedging. If I am correct in the above, then USA traders would not be able to use this system because hedging is not allowed in usa. I am assuming that I am understanding the system and if I have this wrong please help me understand what I am missing. thanks
Yes, you have to be able hedge. If not, then placing sell orders only above level6 and buy orders only below level6.
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  • #15
  • Aug 4, 2013 8:00pm Aug 4, 2013 8:00pm
Quoting the-game
Hi xlitang, You don't need to place any orders at level 6 as they will just cancel each other out anyway. e.g. sell stop 0.03 + buy limit 0.03 = 0.00 lot exposure EDIT: I'm wrong, it will be 0.00 exposure, until one of those orders hit TP Also, thanks! This will be a fun thing to experiment with : )
buy and sell orders will be triggered at same level.

Demo it for six months and enjoy stress free fun ride.
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  • #16
  • Edited 9:17pm Aug 4, 2013 8:59pm | Edited 9:17pm
Hi There,

I honestly think that your system has great potential....
Thank you for sharing it....

but I have a question:
you said in post #1 it is for trading GU and EU only,
how come in your explorer it is showing open positions of other currencies as well?

are you still doing some testing?
how long have you been doing testing? what is your biggest DD?

Thank you
Failure leads to Success if one learns from mistakes and never give up
  • #17
  • Aug 4, 2013 9:10pm Aug 4, 2013 9:10pm
Quoting jinchu
you said in post #1 it is for trading GU and EU only, how come in your explorer it is showing open positions of other currencies as well? are you still doing some testing? how long have you been doing testing? what is your biggest DD? Thank you
My trader explorer is my other trading system. The link in post 1 is for this trading system.
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  • #18
  • Aug 5, 2013 2:13am Aug 5, 2013 2:13am
Hi Xlitang and all,

Looks interesting, but I have some doubts and comments.

If we open 9 shorts and one buy, this is a net 8 shorts. Then, as seen in table below, we can open only -8 shorts in level 1, ... no position in level 6, ..., one short in level 9 (I am taking level 1 as the highest).

level 1 2 3 4 5 6 7 8 9 10 11
Longs 1 1 1 3 3 3 6 6 6 9 9
Shorts 9 9 6 6 6 3 3 3 1 1 1
Net -8 -8 -5 -3 -3 0 3 3 5 8 8


(not sure if can be read correctly)
So let's say we are in level 2. then we trigger 8 shorts. Correct? Then, if we are in an uptrend, these 8 shorts will give us a big loss, as it might go up and up. We are triggering them with the expectation they will go down.

Is this correct or have I misunderstood the system?

Thanks for sharing. I'll follow this thread.

Happy pips

gonso

NOTE: please note that opening one long and one short at the same time is not hedging, but giving more commissions to the broker whilst you are having 0 benefit and a few loss... which is a benefit for the broker. So opening, e.g., a long and a short at level 6 is a very good news for the broker.
  • #19
  • Aug 5, 2013 2:14am Aug 5, 2013 2:14am
There are a lot of "OrderModify error 4051" messages in the log, as far as I can see regarding invalid take profit values passed to OrderModify function.
  • #20
  • Aug 5, 2013 7:36am Aug 5, 2013 7:36am
Quoting gonso
Hi Xlitang and all, Looks interesting, but I have some doubts and comments. If we open 9 shorts and one buy, this is a net 8 shorts. Then, as seen in table below, we can open only -8 shorts in level 1, ... no position in level 6, ..., one short in level 9 (I am taking level 1 as the highest). level 1 2 3 4 5 6 7 8 9 10 11 Longs 1 1 1 3 3 3 6 6 6 9 9 Shorts 9 9 6 6 6 3 3 3 1 1 1 Net -8 -8 -5 -3 -3 0 3 3 5 8 8 (not sure if can be read correctly) So let's say we are in level 2. then we trigger 8 shorts. Correct? Then, if we are in an uptrend, these...
Do some manual calculation simulating market going from level1 straight to lever11 and then from level11 straight to level1. that is complete a cycle. Tell me how much profit you would have made?
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