The Ladder System

I am working on developing a new system EA based on Ladder concept. Which means adding new trades in a user-definable step size as long as previous trades are not stopped. All trades will have unified SL that moves with each new ladder step and a Final Profit Target for all orders.

System Advantage:

1. Limited Low Risk (always fixed = initial risk)
2. Very High Reward based on number of ladder steps and final profit target

As each trader has his own entry system, my inquiry is :

Should I include the first entry in the EA based on some strategy,
OR , I let the first order opened by the user and build up the ladder form there.

Your opinions are welcome

IMPORTANT WARNING: This is still work in progress, so do not try on Live Accounts.

Khalil Abokwaik
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Version Control:

1. Simplest Version 01 : LadderSystemEA_v01 Dated Nov 9, 2014 post # 26
2. User First Order : LadderSystemEA_UFO Dated Nov 16, 2014 Post # 63

Members Wish List :

 

1. aahmad29 : keep first order open by users because in that way all traders can start building ladder on the base of their concept or strategy
   1. DONE Nov, 16, 2014

2. emmanuel7788 :The Initial SL is using the ADR and the position size calculate using a % of capital
3. emmanuel7788 : The each subsequent add-on position is half of the initial trade
4. emmanuel7788 :Trailing stop has differnt options

My translation to Members Wish List :

1. Add an option to Enter 1st Order Manually, Or Automatically by the system built-in strategy
2. Risk Percentage for 1st Order
3. Variable Lot Size for new Orders
4. Trailing Stop Option (Different from the initial stop). This is important as we want to keep our initial stop small until the trend is clear, then we can trail the running profit orders with a wider trailing stop to let the trend breath.

Try different different methods for your strategy. Then you can analyse results

I already did that. For example I used a simple method for first order, where if the previous day is UP I go long, otherwise I go short.

I might include a user input for first order ticket, if it is filled by the user I will use it, otherwise I will open 1st order based on built-in strategy.

Sample Test : EUR/USD 1/5/2014 to 31/10/2014. Step size 50 pips

Here's the first version of the Ladder System EA for back-testing purposes. First order is opened based on previous daily candle, if up then Buy, if down then sell.

System Parameters:

1. LSS = "Ladder Step Size in pips" default 100 for EUR/USD (4 digits broker, if 5 digit it should be 1000 points).
2. SLM = "Stop Loss multiplier of Ladder Step Size". (1 means 1xLSS, i.e if LSS is 100 pips, then SL will be 100 pips)
3. NOM = "Next Order Distance Multiplier of Ladder Step Size". 1 means we have equal ladder steps ... etc.
4. FLS = "Starting Lot Size".
5. LSM = "Multiplier for next orders Lot Size". 1 means equal lot sizes.
6. MXO = "Maximum number of Orders"
7. SL_Shift="Stop Loss Shift in pips" (jumping SL)
8. The TP is currently set at (MXO + 1) * LSS.

EDIT : EA removed as I am working on a stable version. and will post as soon as I test it.

Note that only the 1st order is opened based on "some strategy".
The following orders are just steps of the ladder.
So if the 1st entry was correct and reached a profit equal to the step size, we open a new entry in the same direction, and move stop loss on the first order to BE, and so on.

System will perform well in trending markets and fail in ranging markets.
So step size and stop loss selection is important to avoid ranging periods.

I think it will be also safer to set the step size greater than the average daily range (ADR) for the traded instrument.

It is important that the profit generated from each new order (before opening a new order) is greater than the margin required for the new order to avoid eating up available margin. This can be controlled again by the step size (the wider the better).

I fixed an issue in deleting pending orders. Updated version attached.

EDIT : EA removed as I am working on a stable version. and will post as soon as I test it.

Thank you for your work. What about this losses?

http://gyazo.com/39c3a2d81c83e458f37c789d0c14655a
http://gyazo.com/24165d02092f361026af9f959d42e5ac

count me in for the forword testing ^^

I couldn't stop my self from testing this on Gold

I used step size of 1000 (10 dollars) and maximum orders of 5.

As you can see the system will produce many loss and BE trades, but the few ones that climb the ladder will compensate.

I downloaded your EA to look at it. I noticed that the EA only puts a stop loss on the initial order. Depending on one's broker that means all the other orders would have no stop loss and could potential leave a lot of open orders. If the system asks for the stop loss to be moved at every new order opened, it should make sense to have the EA add a stop for every order and have all of them "shifted" by the EA?

i dont post much, but this system has potential to be 1 of the greatest EA on FF, so i thought i would contribute and help out, basicaly the entry is fine so there is no need to work on the entry, the most important things that need to be implimented in the system is Exit strategies to minimise DD, please read Hayseed's comment on this link http://www.forexfactory.com/attachme...0&d=1275226615..... Or you can just let EA work in a Grid Like way, where you let the EA open orders on every candle on the daily and where winning steps must compensate for loosers..

I think it does move SL. I am away now texting from mobile. I will check it once I have a chance. Thanks.

ok i posted the attachment from the link, well luckily i saved his whole text on wordpad, here is what he said:


place stop/limit orders in a trailing fashion.... trailing grids....
//----
as example, say your selling.... normaly sell limits are placed above and sell stops below.... if the market goes up hard, each of those selllimits activated will add to the draw down.....
so instead don't use the selllimits above, or use them sparingly, and use trailing sellstops below that will rachet higher, ordermodify, as the price moves higher.... and when the market falls back your sellstops will be activated at higher/better price....
//----

picture1: http://www.forexfactory.com/attachme...9&d=1275226615

picture2: http://www.forexfactory.com/attachme...0&d=1275226615

Thanks soros. I got your PM.I prefer the fixed size steps of the ladder (similar to constant range bars:CRB) over daily candles.I will look at the link you attached though.

please read my second above comment.

Yes, you are correct. The EA does move the stop loss, but only the stop loss that is on the initial order... The orders that open after the initial order don't have a stop loss set, so the initial order can get stopped without closing all opened orders.

I am home now so the wife will get angry, but whats the heck, I will check it.