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Straddle trading EA

  • #881
  • Oct 6, 2013 6:43pm Oct 6, 2013 6:43pm
Quoting nzsolt85
Thank u Alan for the quick reply and the clear explanation... im going to try then Go Markets... but i was thinking, that it needs to be another solution for it, bic. if we are thinking, now on a real scenario. lets say, we would like to use the amazing ea on daily bars. lets say the 2 last candle. and the 2 last candles are forming a 140 pipps body, from the bottom to the top. and now the price its floating somewhere at the middle..(70pipps away lets say from the high/low) and its just interesting, that even like this, a pending to the top and...
That's a good idea ! I don't know why I didn't think of it myself. I'm working on it.....
  • #882
  • Oct 7, 2013 6:57am Oct 7, 2013 6:57am
Quoting Alan111S
{quote} That's a good idea ! I don't know why I didn't think of it myself. I'm working on it.....
I've managed to code this. Now it only adds the Minimum Stop Level if it's needed. Am doing a little testing before release tomorrow.....
  • #883
  • Oct 7, 2013 9:51am Oct 7, 2013 9:51am
Quoting Alan111S
{quote} I've managed to code this. Now it only adds the Minimum Stop Level if it's needed. Am doing a little testing before release tomorrow.....
thanks in adv. for your effort Alan!! When the exp.its uploaded, im going to test it...

Have a great day!
  • #884
  • Oct 8, 2013 3:21am Oct 8, 2013 3:21am
Hi Alan,

I've been thinking about this strategy for a while and thought I'd bounce it off the forum. The principal combines your Straddle trade strategy with somewhat of a Martingale strategy. In short you'd lay straddle pending orders at the Open of every candle with the following properties:

  1. Say M1 or M5 chart
  2. PointsAway from Bid/Ask say 0.5 - 1pip
  3. Tight SL say 1-2pips
  4. TP enough to cover spread, commission and some profit, or Break-Even + Trailing Stop
  5. Spread check < 0.5pips
  6. "double down" Martingale option - double lots size for loss trade, or after every trade - with Max lot limit then resets.
  7. Only one trade at a time, or multiple trades on every candle open regardless if previous position closed out - suit Hedging allowed. .
  8. Run during higher liquidity time period - eg London / NY Open +/- 15mins. Or H4 close -15mins
  9. Current chart or all pairs in Market Watch
  10. Will need to call refresh of quote on a loop to ensure it fires at the Open or Close of each candle
  11. OCO option on/off
  12. Expiry duration for non-executed orders

Ideally it will suit ECN broker with tight spreads and fixed commission per lot size, with a direct-connect VPS.

Starting with 0.01 lot size it would be interesting to backtest and optimise then test on demo.

  • #885
  • Oct 9, 2013 1:17pm Oct 9, 2013 1:17pm
Quoting Coley
Hi Alan, I've been thinking about this strategy for a while and thought I'd bounce it off the forum. The principal combines your Straddle trade strategy with somewhat of a Martingale strategy. In short you'd lay straddle pending orders at the Open of every candle with the following properties: Say M1 or M5 chart PointsAway from Bid/Ask say 0.5 - 1pip Tight SL say 1-2pips TP enough to cover spread, commission and some profit, or Break-Even + Trailing Stop Spread check < 0.5pips "double down" Martingale option - double lots size for loss trade,...
Based on my personal experience Coley, i think, that the strategy, that u would like to test on a demo, its going to generate a completely non relevant result... with 1-2 pipps TP and 0.5-1 pipps SL.. u are going to get an unclear picture, as the broker can have nicely a spread widening, low liquidity, and the real market behavior its going to be different as the back-test result its.. even with a 110 % tick data.... so better try this type of tests on a small real account with a few cents, rather then invest a larger amount, and waste time/money...

I was been testing a lot of platforms/strategyes during the last 4 years, and my conclusion its, that with 1-2 pipps sl/tp. the only normal test its the live fw.test, and if your account its going to point up nicely, your account will have delays on executions, ie.. ie.. with my current broker, i had once 8pipps slippage on a pending order.. so no more comment from my side, to 1-2 pipp hunt..

Gl with the trades!
  • #886
  • Oct 9, 2013 8:51pm Oct 9, 2013 8:51pm
Hi nzsolt85 - Yes agree 100%. Backtestting and demo would just be to try and optimize it before starting it on a live micro account 0.01lot size as mentioned.

Success will be very dependent on your Broker.
  • #887
  • Edited Oct 10, 2013 7:26pm Oct 9, 2013 9:35pm | Edited Oct 10, 2013 7:26pm
Happened to Me a tragedy to me today, unfortunately. I broke one of my accounts. I don't know why but has failed the OCO. But the problem I see also that it was the most high slippage of the broker. Take a look at this. Or is the server of the broker, or is slowness of MT4 platform, because this happened to me today. I am very disappointed with this event.

Alan ... what happened here? Could you help me in this case telling me if you know what happened?

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Invest in creating their EAs, because one day you need one!
  • #888
  • Oct 9, 2013 10:15pm Oct 9, 2013 10:15pm
Hey

That was one of the worst whipsaws I have seen in 2-3 years of trading news events. With extremely fast whipsaws, the EA is unable to delete the opposite Pending Order, so OCO won't work. It needs about 2-3 seconds to detect that the 1st order is live.

The moral of the story is that any news release that involves multiple data items can cause conflict. Employment Trades are famous for this, because sometimes the figures are bad or in this case not good but the unemployment rate improves but in this case, less people are looking for work so the rate has improved.

The figure must have come out first then the rate.

Nothing one can do about this except don't trade releases with multiple data items.

Most traders on here (myself included) trade these with OCO=false, because one can normally make up the loss on the other trade. Today that didn't happen unfortunately.
  • #889
  • Oct 10, 2013 2:09am Oct 10, 2013 2:09am
Ah. I wondered why I made such a big loss. No more trading multiple data for me.
  • #890
  • Oct 10, 2013 8:21am Oct 10, 2013 8:21am
Thanks for the response Alan. The error was mine have put lot off my plans. Now I learned that a painful way. I'm glad it was a reserve account. No longer operate like this, except with lots small where there is more than one news at the same time.

I'm thinking here, it wouldn't be so better in this case a brokerage that has accounts with fixed spreads? Because that my Miss was more for the Spread has increased to 15 pips or more at the time of news, if I'm not mistaken.

Being the platform MT5, faster, would it not be better to also have a version for MT5 for testing? She has to count time in seconds.

Recalling also that the times, in some other news, the OCO has failed, except this news really was something very quickly.
Invest in creating their EAs, because one day you need one!
  • #891
  • Oct 10, 2013 5:42pm Oct 10, 2013 5:42pm
Quoting thiagocanuto
Thanks for the response Alan. The error was mine have put lot off my plans. Now I learned that a painful way. I'm glad it was a reserve account. No longer operate like this, except with lots small where there is more than one news at the same time. I'm thinking here, it wouldn't be so better in this case a brokerage that has accounts with fixed spreads? Because that my Miss was more for the Spread has increased to 15 pips or more at the time of news, if I'm not mistaken. Being the platform MT5, faster, would it not be better to also have a version...
Fixed spreads can stop the straddle activating just because of spread widening. However, Fixed Spreads equal Market Maker equal other dodginess like freezing or slow platforms......

The EA has protection for widening spreads:-
1) use MaxSpread to set a limit. Orders will be cancelled if the spread gets too wide
2) use SecBAO to get your orders close only a few seconds before news and if the spreads have already widened, these will be taken into account
3) Use CTCBN=1 to work from the Highs and the Lows to protect you from yo-yo spreads!

For MT5 I would have to rewrite the EA from scratch. I also think that most people prefer MT4 because of it's hedging capability which is not possible in MT5.
  • #892
  • Edited 10:53pm Oct 10, 2013 7:23pm | Edited 10:53pm
Ok. Thanks Alan. I am testing in a Zero Spread account of IronFX. To compensate, pay a Commission for each open order. I talked to the support and they said the news may reach 1.8 ' and ' tops ' 2 ' to spread in a news story. I will test. Again today I deleted a pending order with version 4.0.0. Past the time of STWAN. I had to manually close.

Other than that I think I'm doing it correctly. Go to the test.

In relation to the EA to MT5, I believe it will be the first of its kind, as I've ever seen has no pending orders.

Good luck and success. For sure I want an real account of MT5.
Invest in creating their EAs, because one day you need one!
  • #893
  • Oct 11, 2013 12:08am Oct 11, 2013 12:08am
Quoting Alan111S
Hey That was one of the worst whipsaws I have seen in 2-3 years of trading news events. With extremely fast whipsaws, the EA is unable to delete the opposite Pending Order, so OCO won't work. It needs about 2-3 seconds to detect that the 1st order is live. The moral of the story is that any news release that involves multiple data items can cause conflict. Employment Trades are famous for this, because sometimes the figures are bad or in this case not good but the unemployment rate improves but in this case, less people are looking for work so the...

I noticed when the European troubles started a few years back, I had to stop trading the news because of the huge whipsaws like this one. I think it is was because the big traders where staying out of the market and volume was low which usually means jittery ans extreme moves. Do you think that may be happening now because of the USA debt ceiling standoff?

Also, what max spread do you think might be a good figure to use?
Thanks.
  • #894
  • Oct 11, 2013 6:14am Oct 11, 2013 6:14am
Hello, after reading few reviews, i decided to try this EA earlier this week. Im testing it in a micro account. However, i got a heartbreak of the results lol.
after a week, i lost half of my money. i understand that this EA depends on appropriate settings. but i just can't get a setting that profitable.
Can anybody please share or suggest a good setting that made profit? please help me. This EA looks very promising to me.

Cheers,
vowon
  • #895
  • Oct 11, 2013 8:46am Oct 11, 2013 8:46am
Quoting vowontwoe
Hello, after reading few reviews, i decided to try this EA earlier this week. Im testing it in a micro account. However, i got a heartbreak of the results lol. after a week, i lost half of my money. i understand that this EA depends on appropriate settings. but i just can't get a setting that profitable. Can anybody please share or suggest a good setting that made profit? please help me. This EA looks very promising to me. Cheers, vowon

Sounds like you are trading a too high lot size for the size of your account.
  • #896
  • Oct 11, 2013 9:47am Oct 11, 2013 9:47am
Hi Alan

I have been using the EA live for 2 months now, it works a treat. However after the whip at 13:30 today on CAD Employment which took out both buy and sell orders within a few seconds, it then placed another sell order. This has never happened before so i am stumped. Had a look in the log file but no explanation there. Any ideas?

This and the Aussie Employment trade have made it a bad week. These are the first trades in the last 2 months where the slippage (on opening and closing) has cost me money by whipsaw, so I am wondering if there is something in EventHorizon's theory.

Vowontoe, you must learn about money management before you worry about settings. Standard settings are perfectly workable for profit. Trading the news with this EA will, (if you are selective with the news events worth trading), give you profits and losses in about equal proportions but most will break even. Your profit edge is that your profits should be at least twice the size of your losses. Simple probability theory will tell you that 50% strike rate will give you frequent losing runs of 4, 5 , 6 up to 10 and sometimes the losses will be greater than you risked due to slippage. This is what has happened this week.

Hope you can give me some insight Alan

Rob
  • #897
  • Oct 12, 2013 9:31am Oct 12, 2013 9:31am
Showing my ignorance here, but does it matter what chart time frame you use?
  • #898
  • Oct 13, 2013 8:49am Oct 13, 2013 8:49am
hi eventhorizin and chairmanrob, thanks for your reply and advice. i think my expectation was too high for this EA. tomorrow i'll go with 0.01 lot in micro. at least i wont have heart attack if losses occur again
will experiment more and study. i just had 1 week exp with this ea lol. should be more patient =)
  • #899
  • Oct 14, 2013 3:47am Oct 14, 2013 3:47am
Quoting vowontwoe
hi eventhorizin and chairmanrob, thanks for your reply and advice. i think my expectation was too high for this EA. tomorrow i'll go with 0.01 lot in micro. at least i wont have heart attack if losses occur again will experiment more and study. i just had 1 week exp with this ea lol. should be more patient =)
Yea, I have so far done two months with two mini accounts with two VPS's, trading just with cents to get the settings I want. And I will invrese the lots slowly per month to see how it goes. So far this month is not like the previous two because of the jittery and low volume market.
  • #900
  • Edited 6:11pm Oct 14, 2013 5:33pm | Edited 6:11pm
Quoting chairmanrob
Hi Alan I have been using the EA live for 2 months now, it works a treat. However after the whip at 13:30 today on CAD Employment which took out both buy and sell orders within a few seconds, it then placed another sell order. This has never happened before so i am stumped. Had a look in the log file but no explanation there. Any ideas? This and the Aussie Employment trade have made it a bad week. These are the first trades in the last 2 months where the slippage (on opening and closing) has cost me money by whipsaw, so I am wondering if there is...
Rob

The EA will replace orders that have triggered (and closed) with fresh ones, providing it is still before News Time. This is needed for example if you change timeframes the orders are deleted and replaced or if MaxSpread kills the orders but the spread then comes down, the orders are setup again. So I have tried to program something into the EA that only disables new orders if a buy or sell existed. In very fast markets it may not be possible to detect a trade that exists for like 1 second, so it won't be foolproof!

Look out for Version 4.1.....

Alan
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