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Hy dear Magix,

what is "S&G" and what is "SWB"?

sorry, I´m confused by those appreviations ...

, Dietmar

S&G= Shits and Giggles or just for fun...

SWB is the root logic behind the EA we work with. Was originally released as a very simple grid trader to take a limited range based on indicator based criteria. It is a very basic logic and in sideways markets does very well. Since working with the code, it is the other changes added that make it a little safer while allowing greater levels of prosperity...

Logic added to SWB:
Trigger on Grid, which sets a trigger criteria to a basic grid EA, creating a dynamic grid based on
Trailing Stops, to capture profit while protecting gains.
Trigger on Exit, to allow for gains to be based on Market movement vs limited.
Alternate triggering logic, lending a more precise primary and additional trades that are less random.

This version released is working on the M1 charts and is really only going to implement the trigger on grid and an alternate triggering source that will try to gauge direction by a limited overbought/oversold range and the rate of speed of a reversal into a limited profit range.

When working with indicators only, what isn't taken into account is the apparent randomness of direction.

All indicators LAG.

It is what they are meant to do. Because the bulk are based on previous movement applied to time, they can only tell you what has happened not what is going to happen. It is based on this that identifying true direction based on a single indicator for prosperity works sometimes and not others. Meaning, if we are in a long trend and take a short based on an indicator, the range of that trade becomes tough if not impossible to prosper from as it is may only show consolidation, not an actual trend reversal. If we take only long trades based on an indicator in a long market, it can be prosperous until the range of trade under any select time frame comes to an end and reverses. In this, if you have watched any indicator based trade system or have traded in the open market you can see that sometimes triggers based on market indicators win and other times where they lose.

If you have traded manually, what you will notice is that in playing trend, when you take long trades based on a long chart, the speed of play typically tends to the trend. Meaning, if you go with the trend, the amount of time taken to clear away spread is shorter than if playing against or more specifically, if you have been caught trying to guess where price will reverse, you find out how fast loss can accumulate. This is what I am calling the speed of play.

This version of the EA is set to try and figure how fast market will move out of Overbought and Oversold areas by price closing against a select moving average.

The logic behind these trigger on grid trading systems vs single applied logic is that if it is wrong in defining the trend, it will attempt to cost average out the trade vs closing at a loss. Knowing that every market day, ranges are retraced, even on a long day, at the start of every hour, you take a short trade, you will find at least one candle that will allow you to find a couple of pips to counter the day, simply put, even a broken clock will be correct 2x per day.

So, where we are this week, is that we are defining the Overbought and Oversold areas with the use of Stochastics and trying to gauge the direction by how fast the price moves out of this area, again, under the idea that price will move faster to tend trend than against.

Make sense?

Magix,
thank you for the explanations.

So do we have now the 3rd version of xmasbot (called STOMA)?

sorry, still confused :/

, Dietmar

No, STOMA is just a new toy to try for the week, not a part of the Christmas EAs.

I am forward testing a couple versions of what will most likely be the Final versions of Christmas Bot, to see if they will actually allow prosperity without to great of risk being applied.

I will post myfxbook links and trade explorers for comparison and once I have had some time to forward test and can properly gauge account size needed and amount of risk involved, they will be forwarded to all members of the Christmas Thread.

fx-sniper (http://www.forexfactory.com/fx-sniper)

Thanks for the Donation!

You've Got Mail!

Hi Magix,

Here is my donation,

Keep up the good work!

Dutch.

Dutchy,

Thanks for the Donation.

You've got Mail!

Hmmm, some updates from both test run here ... see screenshots ...

So with -that- small 200 USD account and -that- pairs even xmasbot2 (with trend) makes (here) heavy drawdown in trending pairs.

Best wishes to all of you,
Dietmar

xmasbot1 (without trend)


xmasbot2:


xmasbot1 losing pairs:


xmasbot2 losing pairs:

Here's the thing, Dietmar...

$200, unless trading with a penny size lot is really not sufficient for any grid martingale EA, and even with a penny, still a fair sized risk.

That being said and as we have talked about, when one direction stops trading, or will not cost average the positions anymore because the daily trend has changed, it is option to the user to close these positions and allow the new trend to continue to trade.

Risk increases by the number of positions held as well as the span of distance between the positions. It can be incredibly hard to cost average out level 3 with 6 net lots if they are a few hundred pips underwater.

The other option is of course, to allow for sufficient draws against the account and one could even limit the number of trades by the size of the grid. Set at Default 15, this could be moved to 25 or 50. By reducing the number of positions, it also limits the net size of the position held and thus reducing the risk of draw on the account. Would this have saved the $200?

Probably not.

But, it would most likely have allowed you a little more time to close down the losing positions and see if the new trends would make up this difference over the next swing.

Just thought I would add to your idea, as I am sure others may have the same question as well.

hellboynt (http://www.forexfactory.com/hellboynt)

Thanks for the Donation!!

You've Got Mail!

Thank you, Magix

, Dietmar

Hy traders,

just 4 fun, here now 3 x STOMA EA running at my VPS: AUDUSD, GBPUSD, EURGBP

http://www.myfxbook.com/members/Radioman/stoma-audusd/765875
http://www.myfxbook.com/members/Radioman/stoma-gbpusd/765890
http://www.myfxbook.com/members/Radioman/stoma-eurgbp/765894


thanks @ Magix

, Dietmar

example screenshot AU:

Hi Magix,

when will you send the xmas EA v2?
I ask because the first version of xmas bot has very big losses on jpy pairs. I run now 4 demo account on more then 10 pairs with xmas v1. I hope on weekend I can tell more about the best pairs with xmas v1.

I despise martingale, but you have a good cause here, so I'm not going to go on the typical vicious rant I usually do on these types of threads.

I Just want to say those of you considering trading with it, please reconsider using that option in particular...I actually wrote a simulator two days ago to show why this strategy is so disastrous even with a profitable expectancy base trading idea. If you want to see what martingale can do to your account, just take a look (http://www.forexfactory.com/showthread.php?t=459370).

Hi, Magix!

This is the my Donation to the Brazilian representatives of Operation Smile (http://www.operationsmile.org.br (http://www.operationsmile.org.br/)).

The value was BRL 50.00, about USD 21.50.

I am not sure if I will be able to test the X-Mas Bot. I am really stuck with work.

Anyway, I made the donation and I really enjoyed the initiative.

Keep up the good work.

Derzi,

Awesome, thanks for the donation!!!

I will fire you off the few testers we have for the Christmas bot, you can attack it at will...

Drop me a line if you have troubles getting caught up and I will see if I can give you the skinny skinny!

Right now, though a little risky still, I think that the final version will be ready for release after this week...test through Christmas and see how it does live in the New Year.

Stats HERE (http://www.myfxbook.com/portfolio/xmas-next-gen/761893).

If you never got the Christmas EA 2 file, pm me your Email address and I will forward you the file.

Thanks

Kanz!

Welcome to the thread, Mango!

Appreciating what you are saying, we do the same, encourage profit taking when profit is available.

But in all honesty, cost averaging is a very profitable strategy and knowing when to hold and fold is the same whether traded live or with an automated trader. Any good tool in the hands of somebody that doesn't understand it, is almost guaranteed to fail.

The bulk of the ideas behind what we are doing is to encourage market understanding through the use of a selected trade system(s), with the idea of when you can take profit and when you are alright to sit back.

Thanks for stopping in!