My EA Gift to Traders

HI Dave C..Just seeking a clarification..if one chooses Option 1-Use Signal Reversal and probably he/she is using a combination of indicators say MACD and RSI then how does it carry out the exit?..will it exit ONLY if both ,finally, show a reversal TOGETHER or will it be the 'faster' of the two to show a reversal and the trade is closed?

Finally,Dave C..ignore the detractors shooting peanuts from the back of the cinema gallery..you are a generous man and a fair man..mine will be always to say thank you and express gratitude..am still pleasantly mind boggled by the combinations and permutations possible via this EA..call it feeback overload as you one sifts for the best or optimal..

Well said

The first indicator that shows a reversal will close the trade however a new trade will not be opened until both indicators indicate a trade in the opposite direction.

Thank you for the clarification..awesome feature i must add..

Todays Discussion:

Stop Loss

The input for stop loss is in pips. (0.0001 except JPY 0.01, Gold 0.1 and Silver 0.01) . An input of 50 means you are allowing half a cent adverse movement.

When considering the value of your stop loss, you need to take into account what fluctuations you should be allowing for in pursuit of a successful strategy. If historically the strategy takes normally a number of bars (periods) to be achieved, you need to take into account the Average True Range of the period of the previous trades. Tomorrow I will discuss Average True Range.

The purpose of back testing and optimization is to discover historically what is the best figure to allow for fluctuations and optimize your profit potential. A number of factors can be taken into account such as whether the Stop Loss trails the profit as it rises and whether break even is locked in at a particular profit point.

Stop Loss cannot be guaranteed in a fast moving market and you need to be aware of this. Unlike the stock market, there is no guaranteed Stop Loss by paying an extra commission.

Never ever trade without a Stop Loss. This is where the Expert Advisor takes all of the emotion out of a trade. Whilst a Stop Loss covers a particular trade, it does not cover all trades unless you use a specialized EA for this purpose such as the CloseTrades EA. The major mover of the Forex market is News Releases and the volatility around these releases can significantly reduce the ability for your Stop Losses to be filled without slippage.

Awesome..
High appreciate for your kindness.

I've had a few queries about the CCI Vol in Trade Explorer at the top of this page which was mentioned in Post #1303.
When I highlighted GBPUSD on Friday, it had 47/47 winning trades. Today it has 66/68 winning trades.
EDIT: 69/71 winning trades


It has been transferred to another account because it was affecting the summary of the 168 current strategies on my web page.

Anyway here is the current link to this strategy
http://www.myfxbook.com/members/trad...ci-vol/1252713

The other Trade Explorer at the top of the page was shut down 3 weeks ago because I felt it had run it's course but as a test, I going to restart it just to see what will happen and the link is below. Starting Balance now 28,838. (Originally started on 2nd March with an opening balance of $10,000)

http://www.myfxbook.com/members/trad...cd-cdl/1252785

I've just received an email which is very topical and is enclosed below.

Quote:
Sorry to bother you again and again. I have a situation as attached herewith. In my MT4, 7 majors are running and now equity is $796.00. The lot size was incremented to 0.04 yesterday. I assume the lot size would increment to 0.08, when next trades are placed. I am scared, if this happen for several pairs, I should get a margin call. (My understand is the EA in different charts work independently.)

Should I shut down the EA and restart it again? or let the EA to handle the situation?

Thank you very much Dave.

Reply:
Let the EA handle the situation.

Any trades which have a result which is less than the Minimum Pip Gain setting for that currency pair, results in the next wager being increased by the Stop Loss Multiplier.

As soon as a result is better than the minimum pip gain, the wager will revert to the nominated percentage of equity. (the overrider is that if the wager reaches 20% of equity and the next result is not greater than the Minimum Pip Gain, then the wager will revert back to the nominated percentage of equity).

That is your protection from the Martingale progression.

Regards
Dave

Todays Discussion:

Stop Loss ATR Periods
ATR stands for Average True Range which is an exponential moving average (EMA) of True Range.

True Range is the largest of the range from -

previous candle Close to current candle High
previous candle Close to current candle Low
current candle high to current candle low

Average True Range is calculated with the value of this input which represents the number of periods for the calculation which is the EMA of True Range.
In effect it is the average value of the size of the bars and can be applied as an indicator value multiplied by a value which is specified in the next input - StopLossMultiplier.

An example:
StopLossATRPeriods = 14 (that is the average fluctuation over 14 periods) ----> gives a calculated ATR value of 6.22 (pips)
StopLossMultiplier = 15
StopLoss will be respected at 93 pips.

ATR is based on the current timeframe ie. the chart timeframe to which the EA is attached
You are nominating the number of periods - StopLossATRPeriods (in the example it's the average size of the fluctuations over 14 bars)

It is becoming popular as a means of expressing Stop Loss but is not the my recommended means of determining Stop Loss.
It is better served as a numeric value in conjunction with the Stop Loss Multipler which will be discussed in detail tomorrow.

If the StopLossATRPeriods value is left at zero, StopLossMutiplier takes on a whole different meaning which will be discussed in great detail tomorrow and it probably the most controversial aspect of the TradersGift EA and most discussed aspect in all forms of staking. Watch this space tomorrow for I have plenty to say.

Hi Dave,
I downloaded your attached file which use the CCI Strategy, I loaded the EA only for the Major currency and load the property file downloaded for each... My expectation is that from now on, the next trade will be the opened at the same time, and with the same action buy/sell of your myfxbook page.

The only difference is that the starting balance is 1.000 €.

I'll give you an update soon.

Thank you!

Your assumption is wrong and this has been discussed at length previously. They most probably will not be opened at the same time.

The CCI strategy illustrated already has existing trades and no trades will take place whilst there are existing trades on a particular pair. The only way to synchronise is when there are no existing trades on any currency pair and to begin trading at exactly the same time.

On any pair where there are no trades open simultaneously, the trade time should be the same but the level of money management will be different since StopLossMultiplier will already be in action together with MinimumPipGain considerations.

absolutely! I do agree with you, when we, both, we will not have any trade opened on the specific pair, a new trade on the same pair should be synchronized. No matter what happen on the lot size, because it depends of previous trades, it's ok!

It's timely that I cover issue of loading and saving of set files with Strategy Optimizer.

For those of you using the Standard Version, the program does not force you into any particular directory structure so you are free to save your set files wherever you like and with whatever naming structure your desire. Just like MT4, all the optimized variable values and all the boxes ticked for optimization are also saved.

The downside of this is that all those boxes that are ticked for optimization are also ticked on load of a set file. So, in order to just get the optimized result, you need to un-tick the variable boxes that are ticked, but the headers need to remain ticked so that you are flagging to use of each enabled strategy. This is same way that MT4 handles the use of a strategy by putting a 1 against the Use????Strategy input. There is a quick way to un-tick all the variable boxes by clicking on the "Reset Optimizations" button but you will have to re-click the header on Strategies that you are using within the Tabbed input area. That way, when you press the "Start Optimization" button, you will be taken directly to the result of your saved optimization. By design, the Load and Save Set file buttons are only enabled after you have loaded a specific timeframe and associated Data file. The naming structure of the saved set file by default does give information on the timeframe and currency set but your pre-existing set files do not have this convention. Hence you need to have your own data loaded. To make things easier, I would suggest that you keep your data and optimizations within the same directory. The file load option will only show the applicable file extensions when you are prompted to select a data file or set file.

For users of the Auto version, the process for the automation does rely on a strict naming protocol and directory structure, since the name of the Reference Set gives all the information on the currency pair and timeframe to make the whole optimization process automatic. The download page gives specific information on this naming protocol to use your own sets as part of the automation process.

Hope this helps you understand what is a fairly involved topic. I will try and make a video when I get time, to illustrate this whole procedure and I will cover Strategy Optimizer in full as part of my daily discussion series in due course.

I have also uploaded a changed Strategy Optimizer program to fix a problem with reloading a new Data file. The current Versions are 1.45 for Standard and 2.25 for Auto. If you have already registered you will have the direct web page reference in the email that was sent without having to re-register. Users of the Auto version need only to download the exe file from their web page.

One final point, I did send an email out yesterday to all registered users outlining a new service beginning in June. If you wish to take advantage of the Auto version before June, the monthly service will be included.

All Forex Factory subscribers will always have free access to TradersGift EA (source and executable), Strategy Optimizer Standard and Monthly Data.

Regards
Dave

from now on we should be syncronized on EUR USD Pair... attached your account and my MT4 demo account.

It's pretty simple sync with your account, I just need to close my trade if it's opened on a pair where you have pending trade... and then wait since that you close the trade and both will open a new one on the same pair. does it make sense for you dave?

That would be correct if you are also using the Global Prime server.

Please show some consideration and keep your posts reasonable and in the general interest.

Todays Discussion:

Stop Loss Multiplier

This value can be used in conjunction with the StopLossATRPeriods which was discussed yesterday as a means of determining the value of a Stop Loss but todays discussion is about using this value on its own (StopLossATRPeriods left at 0).

In this context, StopLossMultiplier is the multiple that wagers are increased by, when the return expected as a minimum is not realised (not necessarily a loss, can even be a profit). It is subject to limitations as discussed below.

Hopefully by now, all of you will have read Post #526 and I am indebted to Alex8585 for raising the all important issue of Money Management as a priority in our considerations and for freely giving of his own intellect and expertise.

Just a quick recap on Post 526 which discussed the money management arsenal you have at your disposal and why I regard the Stop Loss Multiplier as a key part of this whole trading tool. The concept of increasing the wager on losing strategies is very contentious and I must emphasise that if you leave the StopLossMultiplier at the default setting of 1, this negates any increase in wager if the result you are looking for is not achieved on a particular trade.

A quick recap on Martingale - this is a system whereby you increase your wager on losses. In it's basic form, you double your wager with successive losses on the premise that eventually you will have a win and your profit will equal the value of your original wager. If you set your Stop Loss Multiplier to 2, wagers are doubled in succession if the result required is not attained. This does not necessarily mean that the result has to be a loss but could be a trade that does not meet your profit expectations.

StopLossMultiplier does not have to be 2. It can be any decimal number you require. It can even be less than 1 and that would mean that you can decrease your wager on subsequent results that do not meet your expectations.

Lets look at an example to put things in context and I am going to introduce a variable which I have not yet discussed in detail - Minimum Pip Gain because that setting will dictate when the Stop Loss Multiplier will be activated.

If you set your wager at 1.5% of equity and your StopLossMultiplier at 1.2 and your MinimumPipGain at 30

If on any successive trades you do not gain 30 pips (nett) your next wager will increase in the following progression.
1.5%, 1.8%, 2.16%, 2.59%, 3.11%, 3.73%, 4.48%, 5.37%, 6.45%, 7.74%, 9.29%, 11.15%, 13.38%, 16.05%, 19.25%, 20% (that is the ceiling)

In other words, on that example, 16 failures to reach 30 pips on successive trades. If you reduce your starting equity you increase that number of 16 and conversely if you increase the value of the StopLossMultiplier, you reduce that sequence. Remember this is just one variable in a whole pattern of trading but is an important element in all the set files which I use. If you don't like it just leave the setting at the default value of 1 and do not optimize the setting.

What in effect this setting is saying to the system, is that I am just waiting for that good profitable trade to come along but I want to be in that position to capitalise when it does in fact appear. Have a look at my Trade Explorers at the top of the page. They are filled with really small results just waiting to capitalise on a good trade. This is caused mainly by the SetStopLossToBreakEven protecting small profits but still increasing the wager by the value of the StopLossMultiplier.

I have purposely capped the maximum value at 20% of equity because Martingale in its basic form will always eventually destroy your capital. If a wager of 20% of capital is lost, the next wager returns to your original % of equity. Also remember we are not in a heads or tails situation where the result is a 100% gain or a 100% loss and that trading, contrary to what may be pushed by some commentators as random, is not that. Give some consideration to Fundamentals (ie. Economic Data, News Releases, Crowd Behaviour, Neural Networks and a full understanding of Fibonacci). This is not a casino where there is always a house edge. Also we are using technical indicators so we potentially have the edge rather than just the random fall of cards, balls or dice.

So Traders Gift and Strategy Optimiser is all about research and analysing what was effective in the near term past and applying it in the near term future. It just so happens I am trying to lead you down a path of your own explorations to suit your own requirements and providing the tool box and some training in your skill set. As you probably realise, I don't have much time for those who just want to jump on the back of published strategies and not develop their own strategies and skill set. Back testing is monotonous but can be rewarding as long as you decide what works and what doesn't.

As I mentioned in Post #526 there are many viewers but apathy being the way it is, most people are just interested in a free lunch with no input or inconvenience for themselves. I personally would like to see some constructive discussion on what I have mentioned because I regard Money Management as far above all other considerations.

I just wanted to use the GBPUSD results on the CCI Vol strategy as an example of what you can achieve with homework on your own explorations. I am not in this to give you instant gratification by the way of profitable strategies but what I am highlighting is that you should pick the eyes out of the better performing strategies.

A little effort can give you encouragement. Many of the queries I get relate to published strategies. When I highlighted this on Friday it was 47/47 winning results and you can come up with similar strategies such as the GBUSD CCI Vol which is now sitting at 69/72 winning results.

A poster has pointed out to me that the CCI strategy is not displaying in the information panel on Traders Gift EA. I have made a change to fix this mistake and also included the display of the Magic Number and Risk Percentage.

Since the thread has been moved to Commercial, I have moved the download to my website and the source and compiled code is still free but you will need to be registered to download. For those of you who have registered, the link is in the email that was sent to you. Please bookmark it and you can go directly to the download page in future. The history of revisions and the registration link is still at Post #1.

Relating to the CCI Vol strategy, when I awoke this morning, I was surprised to see the balance jump and now realise it was due to the great Retail Sales figure from GBP and a couple of my trades were on the right side of the equation. This raises a question, what if I was on the wrong side of it. What if you jumped on the back of the Strategy yesterday morning and was in the middle of a sell trade when those great sales figures came out yesterday evening my time (this morning GBP time).

This is a very contentious subject and I am going to address and post on this scenario later today because I am getting many queries on why the results I am getting don't match what you are getting. This is not a simple issue but I will address it in detail.

On a sidenote here is a great example of a trailing stop loss in action and a SL Multiple as discussed yesterday playing out. $4000 + profit on GBPAUD. Look at the top of this page on the CCI Vol Strategy and the bottom listed trade. (EDIT may have been stopped out by the time you read this) finally - Did get stopped out!

Different brokers have different price feeds which in turn would impact on the values displayed in the indicators being used for a particular strategy. Therefore, you won't get the same result as Dave - guaranteed of that! That doesn't mean it won't be profitable on your broker. Just have some patience!

Dave can't wave a magic wand and suddenly thousands of pips land in your account.

I'm running my own optimised versions of the system and honestly, you should too! Stop wasting your time ensuring the results of your account reconcile to those of Dave. That isn't what this thread is about.