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Exhaustion EA

  • #1
  • First Post: Edited Mar 26, 2016 11:51am Mar 23, 2016 7:55pm | Edited Mar 26, 2016 11:51am
Hi,

I'm new to automated trading and just wanted to share my first EA with you guys. This is a technique that I've been trading for a while (manually) but thought about learning MQL coding to convert the human idea into a robot that executes the trades to compare results and make it easier than monitoring charts all time.

Important Points

- I've tested this EA on demo only. (FxPro Server)
- This EA does not rely on tick data. It open trades based on close/open of new candlestick
- The EA buys when price drops too far below our EMA, and sells when price rises far above our EMA (Counter-trend)
- The EA locks/close all positions when floating profit is met. (Variable based on timeframe and currency traded)

Here's how the EA put trades:

The Main Idea

When price moves too far from EMA up or down the EA will make a trade with a min. position e.g. 0.01 in opposite direction. The idea is that stretched moves will likely be followed with some corrections. The EA will add up to losers when price moves against first trade specific number of pips. e.g. You bought GBPJPY at 150.00 and the EA parameter to open new trade if the current trade is losing 50 pips, it'll open a double position at 149.50 and so on.

Trade Ideas on Chart (How the EA works in Graph)

https://charts.mql5.com/10/635/gbpus...l-services.png
https://charts.mql5.com/10/635/gbpus...services-3.png

Take Profit

The EA will automatically close all trades if floating profit meet what we have set in EA. This is variable because the EA is setup to work on different timeframes/pairs (I'll specify them below)

StopLoss

None.

Parameters to MODIFY before executing/testing the EA per pair/timeframe

Minimum position: You have to tell the EA the position size of your first order. Keep it min. relative to your account balance to avoid large drawdown.
Maximum position: The maximum position size in case price kept going against you first.
Profit: The profit (in your deposit currency) that once met the EA will close all trades automatically (profits+losses together) e.g. 5 means 5 GBP if your account is in pounds.

Make sure you change these according to account balance, trading results will vary greatly based on risk and position sizing. So try different settings.

Which pairs / timeframes can the EA trade currently?

The EA is currently adapted to work on specific pairs/timeframes. Open the code to figure them out and I'm adding more pairs/timeframes as I find best settings.

Backtest and do your homework. If you can improve the parameters to give much better results or fix any bugs in my code (I'm new remember) please do not hesitate to post the edits here.

I'm not responsible for any losses/gains made in live trading. If you decided to trade with it, trade at your own risk.

I'm not posting for any commercial purpose and NEVER will be selling any code or strategy. I am only sharing.
Attached File(s)
File Type: mq4 Exhaustion_EA.mq4   7 KB | 1,908 downloads | Uploaded Mar 26, 2016 11:51am
  • #2
  • Mar 24, 2016 9:26am Mar 24, 2016 9:26am
Thank you for the EA. Will give this a test run. Seems to be trading very well on your TE
  • #3
  • Edited 10:46am Mar 24, 2016 10:03am | Edited 10:46am
Quoting gwindy
Thank you for the EA. Will give this a test run. Seems to be trading very well on your TE
Just a correction. The TE is manual trading and not the EA (just using plain charts and my eyes) yes it's same principle but ofcourse not following the EA profit rules.

You're very welcome
  • #4
  • Mar 24, 2016 11:20am Mar 24, 2016 11:20am
Are you going to post any of your back test results?
  • #5
  • Mar 24, 2016 11:49am Mar 24, 2016 11:49am
Quoting JTTrader
Are you going to post any of your back test results?
I could. I just find that traders give low priority to backtest as the past results are not indicative of future trading. That's why I didn't put them at first post.

However, the EA relies heavily on 3 parameters for each pair (and timeframe)

For example GBPCAD 30m using these parameters

price_d = 0.0150;
moneyline = MinPosition * 1000;
reload_loss = 0.0050;

Backtest from 2013, 0.01 positions.

Remember that changing these 3 variables will heavily affect the profit/drawdown. Increasing position size will increase risk/and profit.

price_d defines the distance between MA and price at which you want to speculate a reversal position. moneyline is the profit line that once hit all positions are closed. reload_loss is the number of pips to re-load when position moves against you. Hope that's clear.
Attached Image (click to enlarge)
Click to Enlarge Name: StrategyTester.gif Size: 9 KB
  • #6
  • Mar 24, 2016 11:57am Mar 24, 2016 11:57am
So risk variables and important factor also is starting capital. Here's a test for example from 2000, to 2016 on GBPJPY 30m

Settings used:
price_d = 0.0150;
moneyline = MinPosition * 1000;
reload_loss = 0.0050;

Min risk position: 0.10
Max risk position: 1.0
Starting funds: 50,000

So what I want to say, you need to adapt the min/max position to suit the capital. Also need to find the best settings (price_d, moneyline and reload_loss) for each pair and each timeframe, and consider market volatility during that period also. Hope the idea is clear now.
Attached Image (click to enlarge)
Click to Enlarge Name: StrategyTester.gif Size: 9 KB
  • #7
  • Mar 24, 2016 12:19pm Mar 24, 2016 12:19pm
Note: On June 23th will be held the referendum in GB about a possible "Brexit"! This event may heavily influence GBPXXX currencies during the upcoming weeks/months...!
I never lose - either I win or I learn...
  • #8
  • Mar 24, 2016 12:27pm Mar 24, 2016 12:27pm
Quoting jdva
Note: On June 23th will be held the referendum in GB about a possible "Brexit"! This event may heavily influence GBPXXX currencies during the upcoming weeks/months...!
Sure. No system or EA can stand exotic events. Like SNB event. So best to not trade such risky events / assets.
  • #9
  • Mar 24, 2016 1:44pm Mar 24, 2016 1:44pm
Update

Added EURGBP and timeframe 30Minute.

Settings tested: 0.0050 price_d, and 0.0010 reload. 50k starting capital. Period of test 2010 to 2016.

The attached PDF shows complete report, trade times, parameters, test period etc. Better than a boring graph
Attached File(s)
File Type: pdf EURGBP30m.pdf   236 KB | 1,083 downloads
  • #10
  • Mar 24, 2016 3:55pm Mar 24, 2016 3:55pm
Added AUDNZD 30minute chart settings.

Interesting results with 50k starting capital, min position 0.3 / max position 5.0 lots / Profit: 500 (deposit currency)

Updated the EA in first post.
  • #11
  • Mar 24, 2016 11:01pm Mar 24, 2016 11:01pm
Quoting midouch
Added AUDNZD 30minute chart settings. Interesting results with 50k starting capital, min position 0.3 / max position 5.0 lots / Profit: 500 (deposit currency) Updated the EA in first post.
Hi Midouch, would you be able to kindly advise what updates have been made to the EA, if you don't mind that is
  • #12
  • Mar 25, 2016 2:19am Mar 25, 2016 2:19am
As far as I know need two GU charts trading in the same profile different EA magic numbers. Right Midouch?
I never lose - either I win or I learn...
  • #13
  • Edited 5:35am Mar 25, 2016 5:21am | Edited 5:35am
Quoting gwindy
{quote} Hi Midouch, would you be able to kindly advise what updates have been made to the EA, if you don't mind that is
Thanks for your reply. I've only added AUDNZD 30m and changed a few of the parameters in GBPCAD 30m.

jdva,

I'm new to EA coding really like I said in first post. So I'm not the best person to answer this, I've especially learnt EA coding to convert my manual trading strategy into a bot without human intervention. So I hope a kind EA coder with more experience can answer you.

Also, I received a PM saying that it may not work on specific brokers due to the symbol prefix/suffix I think, and I have to modify the EA for that reason. I'll post a reply here if I updated it.
  • #14
  • Mar 25, 2016 9:07am Mar 25, 2016 9:07am
I've updated the EA in first post to work with symbols that have prefix/suffix in some brokers.

Thanks to yicktan for this tip.
  • #15
  • Mar 25, 2016 9:27am Mar 25, 2016 9:27am
Here are settings for AUDNZD H4 timeframe

price_d 0.00150
reload_loss 0.0030
tested with 50k starting balance
min position 0.5
max position 5 lots
profit 120

drawdown in test was 30% in can be less if i reduce position size, but that means less profit too. attached chart to give a better idea about how the EA execute the trade.
Attached Image (click to enlarge)
Click to Enlarge Name: audnzd-h4-fxpro-financial-services.png Size: 149 KB
  • #16
  • Mar 25, 2016 9:44am Mar 25, 2016 9:44am
​I trade in similar way to you. Instead of Ma I use starc bands that are adjustable depending of volatility. For now two months and 7% profit and max dd of 1,5 %.
I avoid News and market openings and trade reversal times like Europe lunch or London close. I think this kind of systems have and hedge but you have
to know how to manage DD and close trades in big trends. Also the leverage has to be low or sooner or later yo will wipe your account.
You have to look for a 20-40% anual return, no more.
  • #17
  • Mar 25, 2016 9:49am Mar 25, 2016 9:49am
Quoting BermeoFX
​I trade in similar way to you. Instead of Ma I use starc bands that are adjustable depending of volatility. For now two months and 7% profit and max dd of 1,5 %. I avoid News and market openings and trade reversal times like Europe lunch or London close. I think this kind of systems have and hedge but you have to know how to manage DD and close trades in big trends. Also the leverage has to be low r sooner or later yo will wipe your account.
Great results. Leverage has to be low, or the actual position sizing has to be low right. You have to allow your trade to scale, and starting with 1 lot won't help and most probably will kill the account. It also depends on your trading capital. I use 0.01 positions
  • #18
  • Mar 25, 2016 10:17am Mar 25, 2016 10:17am
Quoting BermeoFX
​I trade in similar way to you. Instead of Ma I use starc bands that are adjustable depending of volatility. For now two months and 7% profit and max dd of 1,5 %. I avoid News and market openings and trade reversal times like Europe lunch or London close. I think this kind of systems have and hedge but you have to know how to manage DD and close trades in big trends. Also the leverage has to be low or sooner or later yo will wipe your account. You have to look for a 20-40% anual return, no more.
20-40% annual profit would put you in the league of highly paid Wall Street fund managers (with at least $500k per MONTH salary).

On the other hand: the same 20-40% annual profit - even with a $100k private account - would result in $20-40k per year (pre-tax) income which sounds very low for the risked $100k, and it would be difficult to save up with such a low income even for a Toyota, not to mention a Mercedes S500...

And the more important practical question: Do you even have the $100k to trade with on Forex...?
  • #19
  • Edited 11:52am Mar 25, 2016 10:24am | Edited 11:52am
Quoting MasterGuru
{quote} 20-40% annual profit would put you in the league of highly paid Wall Street fund managers (with at least $500k per MONTH salary). On the other hand: the same 20-40% annual profit - even with a $100k private account - would result in $20-40k per year (pre-tax) income which sounds very low for the risked $100k, and it would be difficult to save up with such a low income even for a Toyota, not to mention a Mercedes S500... And the more important practical question: Do you even have the $100k to trade with on Forex...?
I'm not sure about the guy, but 20% per year looks low to me. I can get 12.5% here without a risk (Bank deposits) so I am hoping that I am able to surpass that percent.

It also depends on account size yes, If you make 20k per year trading forex that's cool as a secondary income ofcourse. I assume that you're hobby trader like me? I have main job, and trading forex is secondary.
  • #20
  • Mar 25, 2016 10:51am Mar 25, 2016 10:51am
Quoting midouch
{quote} I'm not sure about the guy, but 20% per year looks low to me. I can get 12.5% here without a risk (Bank deposits) so I am hoping that I am able to surpass that percent. It also depends on account size yes, If you make 20k per year trading forex that's cool as a secondary income ofcourse. I assume that you're hobbie trader like me? I have main job, and trading forex is secondary.
My guess is that 99.99% of people here (on ForexFactory) are hobby traders, including me...
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